If you’re planning an expensive trip and want the flexibility to cancel for any reason, “cancel for any reason” travel insurance can be a great option to consider.
It’s important to note that even the best CFAR coverage may not fully reimburse all your expenses if you cancel for reasons not explicitly listed in the policy. However, you can still get up to 75% of your covered expenses, which is better than receiving no reimbursement at all.
To find the best CFAR travel insurance, our team of experts analyzed 53 different travel insurance plans. Our recommendations were based on various factors, with a significant emphasis on the cost of the insurance. Additionally, we considered the reimbursement amount offered and the possibility of an “interruption for any reason” upgrade. These factors helped us determine the most suitable options for travelers seeking increased peace of mind and flexibility in their travel plans.
Compare the best “cancel for any reason” travel insurance plans of 2023
|COMPANY||BEST CFAR PLAN||REIMBURSEMENT AMOUNT||OUR RATING|
|Seven Corners||RoundTrip Basic||75%||5 stars|
|Travel Insured||Worldwide Trip Protector||75%||4 stars|
|Trawick International||Safe Travels First Class||75%||4 stars|
|WorldTrips||Atlas Journey Preferred||50% or 75%||4 stars|
|Cat 70||Travel Plan||75%||3.5 stars|
|John Hancock||Silver||75%||3.5 stars|
|Nationwide||Cruise Luxury||75%||3.5 stars|
|Tin Leg||Gold||75%||3.5 stars|
|USI Affinity||Ruby||75%||3.5 stars|
|Travelex||Travel Select||50%||3 stars|
|HTH Travel Insurance||TripProtector Preferred||75%||1.5 stars|
|IMG||iTravelInsured Travel LX||75%||1.5 stars|
|AXA Assistance USA||Platinum||75%||1 star|
|Berkshire Hathaway Travel Protection||LuxuryCare||50%||1 star|
What is “cancel for any reason” (CFAR) insurance?
“Cancel for any reason” (CFAR) coverage is an extension of basic trip cancellation benefits provided by travel insurance. When you have CFAR coverage, it goes beyond the regular cancellation benefits and allows you to get reimbursed for up to 75% of your nonrefundable travel costs if you decide to cancel your trip for a reason that isn’t listed in your policy.
According to Stan Sandberg, who is the cofounder of TravelInsurance.com, travel insurance plans have their limitations. While they cover various travel situations, they do not cover everything. Specifically, when it comes to trip cancellation coverage, the insurance plans will only provide coverage for specific reasons listed in the plan’s description of coverage. Any event that is not listed as a covered reason will not be reimbursed unless the traveler has opted for a “cancel for any reason” policy.
It’s important to understand that standard travel insurance can be restrictive in its coverage, so travelers should carefully review the policy details to know what is covered and what is not. Opting for a “cancel for any reason” policy can provide greater flexibility and peace of mind when planning a trip, as it offers broader protection in case unforeseen circumstances arise. However, it’s essential to check the terms and conditions of the CFAR coverage, as there might be certain limitations or requirements to fulfill in order to be eligible for reimbursement.
How does “cancel for any reason” coverage work?
One common option for travelers is “Cancel for any reason” (CFAR) insurance, which is offered as an upgrade to regular travel insurance plans, according to Sandberg.
To be eligible for CFAR coverage, you’ll generally have to purchase the insurance within a specific timeframe, usually ranging from one to three weeks after making your initial trip payment.
Moreover, insurance providers often require that you insure the entire value of your nonrefundable trip expenses to qualify for CFAR benefits.
Average cost for travel insurance with “cancel for any reason” (CFAR) coverage
|COMPANY||TOP-SCORING PLAN||AVERAGE COST OF TRAVEL INSURANCE WITH CFAR COVERAGE|
|Seven Corners||RoundTrip Basic||$397|
|WorldTrips||Atlas Journey Preferred||$466|
|Trawick International||Safe Travels First Class||$500|
|Travel Insured||Worldwide Trip Protector||$533|
|Cat 70||Travel Plan||$541|
|HTH Travel Insurance||TripProtector Preferred||$707|
|AXA Assistance USA||Platinum||$808|
|IMG||iTravelInsured Travel LX||$828|
What to know about CFAR insurance
“Cancel for any reason” travel insurance requires travelers to cancel their trip at least 48 hours before the scheduled departure time to be eligible for reimbursement. The CFAR benefit, provided by companies like Squaremouth, Cat 70, and Tin Leg travel insurance, requires travelers to cancel their entire trip two to three days before their departure to avail of the reimbursement.
What is “interruption for any reason” (IFAR) coverage?
Both CFAR and IFAR travel insurance options offer coverage for trip changes. With an IFAR upgrade, you can be reimbursed for up to 75% of your nonrefundable trip expenses if you modify your itinerary for a reason not covered by the base policy. This means added flexibility and peace of mind when unforeseen circumstances arise during your trip.
Just like CFAR, IFAR coverage is not automatically included in standard travel insurance policies. It is an optional add-on that comes at an additional cost. Before purchasing your travel insurance, it’s essential to check if the company offers IFAR coverage to ensure you have the option to upgrade for added protection.
Can I use my “cancel for any reason” insurance for COVID-19?
Travelers often wonder if their “cancel for any reason” insurance can be used for COVID-19-related situations. Generally, travel insurance plans do provide coverage for losses resulting from COVID-19 illness, both for canceling or rescheduling a trip. However, it is crucial that the diagnosis comes from a doctor or a third-party testing service.
While comprehensive travel insurance policies offer significant coverage, it’s essential to note that the base plan might not cover instances where a traveler decides not to proceed with their trip due to concerns about COVID-19. To have coverage for such situations, individuals can opt for the additional CFAR (Cancel for Any Reason) coverage, which allows them to cancel their trip without specific reasons.
Do credit card benefits include “cancel for any reason” coverage?
When it comes to travel insurance, it’s important to know that “cancel for any reason” coverage is typically not offered through credit cards. However, if you use your credit card to pay for a covered trip, you might still be eligible for certain travel insurance benefits.
Credit card companies may provide various travel insurance perks depending on the card you have. Some of these benefits may include coverage for trip cancellation and interruption, assistance with lost luggage, reimbursement for baggage delays, travel and emergency assistance services, as well as compensation for trip delays.
While credit card travel insurance can be beneficial, it’s essential to read the terms and conditions carefully to understand the extent of the coverage. Additionally, coverage may vary depending on the credit card issuer and the type of card you hold. Therefore, it’s wise to review your credit card’s benefits thoroughly before relying solely on it for travel protection.
Will CFAR insurance get me a full refund if I cancel my trip?
CFAR travel insurance does not provide a full refund in case of trip cancellation. If you have opted for the CFAR upgrade, you can expect a partial refund of 50% or 75% of your covered trip expenses. This refund is applicable as long as you cancel within the required timeframe.
To be eligible for a CFAR claim, you must cancel your trip at least 48 hours before your scheduled travel. Filing the CFAR claim within this time frame will allow you to avail the partial refund based on the policy’s terms and conditions.