Trip cancellation coverage is a valuable part of the best travel insurance plans. Trip cancellation insurance can reimburse you 100% for money you lose in prepaid deposits that are non-refundable. To make a trip cancellation claim you must be canceling for a reason listed in the policy.
But what if you want to cancel your trip for a reason that’s not listed in the policy? That’s where “cancel for any reason” coverage (CFAR) can help. It’s an upgrade that allows you to cancel for any reason and generally provides 75% reimbursement of your non-refundable trip costs.
Do you suddenly have a fear of travel? Maybe you had a fight with your travel companions and don’t want to go anymore. “Cancel for any reason” coverage is your ticket out. Add it on shortly after you make your first trip deposit because there’s usually a two-week purchase window.
How Does “Cancel for Any Reason” Coverage Work?
“Cancel for any reason” insurance lets you cancel a trip for a reason not listed under your trip cancellation coverage and receive partial reimbursement. For example, if you get sick right before your trip and can’t go, that’s generally covered by standard trip cancellation insurance and you can make a claim for 100% reimbursement of the trip costs you lose.
But if you want the flexibility to cancel for reasons not listed in the base policy, “cancel for any reason” can help. For example, under CFAR you could make a cancellation claim because:
- You’ve developed a fear of travel.
- You don’t like your destination’s Covid testing requirements.
- You’ve seen bad reviews of your resort.
- You’ve decided to visit your grandchildren instead.
You will generally be reimbursed for 75% of your pre-paid, forfeited and non-refundable trip costs. The percentage for CFAR reimbursement will be listed in the policy.
To get “cancel for any reason” coverage you’ll have to purchase a base travel insurance plan and add “cancel for any reason” coverage within a certain time frame after your first trip payment. This is usually 14 days but make sure to check your plan. The deadline for adding CFAR will depend on the travel insurance company, and not all companies offer it.
You generally have to cancel your trip no less than 48 hours before your departure. For example, if you’re leaving tomorrow and you want to cancel the trip today, you probably won’t be able to make a CFAR claim.
Make sure to read the policy’s fine print and know the deadline for canceling the trip if you buy CFAR insurance.
How Much Does “Cancel for Any Reason” Insurance Cost?
“Cancel for any reason” coverage typically adds 50% to the cost of your travel insurance. Here are cost examples for two travelers from California going to Turks and Caicos on a $5,000 trip.
Can I Use “Cancel for Any Reason” Coverage to Cancel My Trip Due to the COVID-19 Pandemic?
If you want to cancel your trip due to the coronavirus, you can use CFAR coverage. Keep in mind, you’ll need to cancel your trip by the policy’s deadline for a claim (typically two days before your departure date).
For example, you could make a claim under CFAR if you don’t like your destination country’s Covid testing requirements, or simply because you think it’s a bad time to travel.
What If I Don’t Have “Cancel for Any Reason” Coverage But I Want to Cancel My Trip Due to the Pandemic?
Some policies will cover Covid for trip cancellation and medical expenses. For example, if you’re diagnosed with Covid right before your trip, these plans can cover the money you lose under the regular trip cancellation benefits.
See our ratings of the best Covid-19 travel insurance to see who sells these plans.
Methodology
We scored 46 travel insurance plans using data provided by Squaremouth, a travel insurance comparison provider. Plans earned points based on the maximum insurable trip cost, the average cost increase for adding “cancel for any reason” coverage, the time frame to purchase a CFAR upgrade, and exclusions regarding CFAR coverage.
