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Standard travel insurance plans protect the buyer and reimburse pre-paid and non-refundable travel expenses if the trip is canceled. However, the important caveat is the cancellation must be due to a covered reason. These reasons vary slightly by the provider and plan selection but generally include major life events, some natural disasters, or the closure of the travel destination.

For a complete list of standard travel insurance covered events, please visit the experts at TravelInsurance.com.

Cancel For Any Reason: What It Is

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Cancel For Any Reason (CFAR) travel insurance is typically available as an add-on to standard travel insurance policies. CFAR increases the list of covered cancellation reasons for increased peace of mind while booking travel. Since it's an add-on, it must be an addition to a standard travel insurance policy for an extra cost and must cover 100% of the trip's prepaid and non-refundable costs. Many travel insurance providers offer this option, but not all do.

It's important to note that CFAR insurance must be added within a specific amount of time from booking the travel, usually within 10 to 21 days, and it typically reimburses a large percentage of the travel cost, but not 100 percent. Finally, the trip must be canceled at least 48 hours before the scheduled departure, or the coverage may be forfeited.

Cancel For Any Reason: What It Covers

Cancel For Any Reason travel insurance, as the name suggests, protects travelers that decide to cancel their trip for "any" reason not covered by standard travel insurance. It is the only available insurance add-on that will refund a percentage of the trip costs if the cancellation is due to COVID-19 coronavirus concerns. In addition to pandemics, CFAR also generally covers:

  • Political unrest in the destination city or country
  • Canceled events, such as weddings
  • Financial hardships of the traveler
  • Personal hardships, such as divorce or a family member's (or pet's!) death
  • Simply change of mind

Cancel For Any Reason: Costs

Cancel For Any Reason travel insurance is an additional cost that goes above and beyond the price of standard travel insurance. As with standard travel insurance, it's calculated as a percentage of the total trip cost. This percentage varies by the insurance provider but is typically 40 to 50 percent of the percentage of the standard insurance cost. For example, if the total non-refundable travel cost is $1,000 and the standard insurance costs 8 percent ($80), the Cancel For Any Reason coverage is typically 4 percent ($40), so the total cost would be $1,120. During these uncertain times, isn't that worth the peace of mind?

It is imperative to research and compare different travel insurance providers before selecting the best option for a trip. TravelInsurance.com provides a quick and easy way to compare available options and add-ons side-by-side based on a specific trip's cost, the travelers, and the destination.

So you know you need trip insurance but aren’t sure exactly where you want to go yet? Consider our firsthand bucket-list and inspire content!

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