When you make travel plans, do you ever stop to think about all the eventualities that could potentially derail your trip – like an illness, a work conflict, or maybe a broken leg? After considering the “what-ifs,” many people decide to purchase travel insurance, but often, travelers overlook the “cancel for any reason” add-on (sometimes known as CFAR).
While we like to be eternally optimistic, unlikely scenarios can and do happen, and they’re not always covered by your standard travel insurance policy.
Wondering if you should spring for extra protection? If you’re unsure what “cancel for any reason” travel coverage is and when you should purchase it, here’s what you need to know.
What you need to know about travel insurance
“Cancel for any reason,” also known as CFAR, is a time-sensitive, optional benefit that can be added to some comprehensive travel insurance policies. Before we delve into the details, it’s useful to understand trip insurance in general.
Here are some resources that explain everything you need to know about travel insurance and its benefits, from trip cancellation and interruption coverage to emergency medical and baggage delay coverage:
What is ‘cancel for any reason’ security?
While travel insurance policies may offer a variety of coverages (such as medical evacuation, trip cancellation due to foreign or domestic terrorism, or damage to your rental car), not every insurance policy covers every eventuality.
For example, some trip insurance plans may offer coverage in the event of layoff, while others do not. Some policies may have strong emergency medical coverage, while competitors do not. That’s why it’s important to choose a plan that meets your specific needs for each trip.
When it comes to travel insurance, it is common to see a long list of events excluded from coverage: normal pregnancy, pet illness, death by suicide (yours or a travel companion) or any self-inflicted injury, psychological disorders, mountain climbing, bungee jumping, Skydiving, declared (or undeclared) war and epidemics and epidemics.
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CFAR is a time-sensitive add-on that you can purchase from some providers when purchasing certain comprehensive travel insurance plans—as long as you meet certain eligibility requirements. By paying extra for this coverage, you can cancel for any reason under the sun as long as you follow the policy purchase and cancellation terms.
When am I eligible to add CFAR protection?
Generally, you’re only eligible to add CFAR coverage to a comprehensive travel insurance policy at the time of purchase — you typically can’t purchase a policy and then decide to commit to a CFAR add-on.
Additionally, you will need to commit to the policy And CFAR protection immediately after making your initial trip payment. According to InsureMyTripGenerally, “the policy must be purchased within 10-21 days of the initial trip payment to be eligible for CFAR benefits.”
Many providers will require you to insure the entire value of your trip and additional requirements may apply. As always, it’s important to read all the terms before purchasing any travel insurance policy – including CFAR coverage.
How much does CFAR coverage cost?
CFAR coverage is a good way to hedge bets against unknown uncertainties that may appear before you travel. Fees for these add-ons are usually calculated as a percentage of the cost of the standard insurance policy you choose.
A standard comprehensive plan can cost 4% to 10% of the total cost of the insured trip, and CFAR coverage can cost 40% to 60% more on top of the standard plan (not the cost of the trip).
Consider the following illustrative example for a $5,000 trip with two 50-year-old tourists to Aruba:
- A standard, comprehensive plan can cost around $250 – 5% of the total trip cost.
- A comprehensive plan with an included CFAR upgrade can cost around $375 — which is the price of the standard plan ($250) plus an additional 50% ($125).
However, please note that all plan costs will vary based on individual quote details.
Will you get all your money back if you buy CFAR coverage?
No. Generally speaking, CFAR coverage can reimburse up to 75% of your total insured, prepaid, non-refundable trip costs. Additionally, CFAR coverage generally requires you to cancel your trip two days prior to departure to be eligible for reimbursement.
Check the insurance policy terms carefully to find out how much your refund will be if you use the CFAR terms and cancel your insured trip — and be sure to know the deadline for doing so.
Should you buy CFAR coverage?
Whether you choose to travel and what level of insurance to buy – or not – is always a personal decision. However, TPG has consistently received many questions from readers over the past few years about this topic.
“One of the top questions travelers ask is when to shell out for a CFAR upgrade,” says Meghan Walch, travel insurance expert and director of product. InsureMyTrip. “It is important to note that the standard does a comprehensive policy not Covers the fear of travel. That’s why we strongly recommend all travelers consider CFAR if eligible.”
If your total trip costs are low, you may decide to forgo insurance – or additional CFAR coverage – and instead “self-insure” (that is, bear the non-refundable trip costs if you cancel). can But, if your vacation is expensive, the extra fee for CFAR coverage seems like a bargain — it beats the option of potentially losing thousands of dollars if you have to cancel non-refundable reservations.
Related: Truths and Myths About ‘Cancel For Any Reason’ Travel Insurance
A few more words of advice
Before the outbreak of COVID-19 in 2020, many people never considered the possibility of a pandemic disrupting their travel plans. Although we are now out of the lockdown era, it adds a new level of complexity to decisions about booking future holidays. Here are some specific scenarios to consider:
What to do if you’re going to book a trip but are hesitant due to future pandemic concerns
If you’re afraid of shelling out big bucks for future trips, buy a comprehensive travel insurance policy And Adding a CFAR coverage option may be the best bet.
“Cancelling for any reason is the only way to save most of the cost of your trip if you want the flexibility to cancel your trip,” Walch says.
It can also be a great option for immunocompromised travelers. Even if a doctor certifies your inability to travel, that may not be enough to qualify you for reimbursement under a standard, comprehensive plan — but CFAR coverage can help recover some of your forfeited expenses.
If you’re shopping for CFAR coverage, you can use sites like InsureMyTripAnd then check the applicable box under Search Results:
Doing so will only show policy results that include that type of coverage.
What to do if you have booked a trip and have insurance – but your policy does not include a CFAR clause
If you’ve purchased a comprehensive travel insurance plan for an upcoming trip but haven’t added CFAR coverage, be aware that your options are more limited. While CFAR coverage can cover you for epidemic-related risks, other comprehensive policies can cover other medical-related concerns.
This may include:
- Coverage for common concerns like cancellation due to illness diagnosed before travel
- Emergency medical care from a doctor or hospital if you become ill while traveling
- Accommodation coverage if there is quarantine at your destination
Always review your policy carefully to understand exclusions — but note that, without CFAR coverage, canceling a trip simply because you fear a new outbreak will not result in a successful claim under standard, comprehensive travel insurance plans.
What to do if you have booked a trip and do not have travel insurance
First, look at when you actually booked the trip. If it was within the last three weeks, you may still be eligible for a comprehensive travel insurance plan with the CFAR add-on.
If not, there may still be a comprehensive travel insurance policy that provides additional protection for illness-related concerns – including emergency medical evacuation.
In short, it’s important to investigate your travel insurance options as soon as you book a trip (and make the initial payment). This will maximize the number of applicable schemes and is particularly important regarding time-sensitive benefits – such as CFAR conservation.
The best credit cards for trip cancellation and interruption insurance
Credit cards generally do not offer CFAR travel insurance. However, many other travel insurance policies come with policies that cover your needs well and can act as an extra layer of protection on top of the additional policies you may carry.
If you are specifically looking for CFAR travel insurance, we recommend taking out a standalone policy. That said, here are some cards we recommend that offer a range of other travel insurance coverage.
Bottom line
Having the peace of mind that travel insurance provides is important, and although we hope you never have to use it, it can prove invaluable if plans go awry. You may have previously given up on the idea of trip insurance (especially expensive policies that offer a CFAR add-on), but if you want to be covered for the contingencies on an expensive trip, CFAR may be the best option to consider.
Disclaimer: This information is provided by IMT Services, LLC (InsureMyTrip.com), a licensed insurance producer (NPN: 5119217) and a member of the Tokio Marine HCC group of companies. IMT’s services are available only in the states where it is licensed to do business and the products it provides. InsureMyTrip.com May not be available in all states. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as approvals for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the insurer. The information on this site does not in any way create or modify the terms of any insurance policy. For more information, visit insuremytrip.com.