What Is Cancel for Any Reason (CFAR) Insurance?

While most travel insurance policies provide certain trip cancellation benefits, they often only cover specific reasons like natural disasters or medical emergencies. Cancel-For-Any-Reason (CFAR) insurance could be worth considering if you need more flexibility with your travel insurance.

CFAR insurance is an optional add-on to a standard travel insurance policy. It allows you to recover a significant portion of your non-refundable travel expenses if you cancel your trip for reasons not covered by standard policies.

What Is CFAR Insurance?

Cancel-For-Any-Reason (CFAR) insurance is supplemental coverage that refunds a portion of your non-refundable travel expenses if you cancel your trip for any reason not included in your standard travel insurance.

However, CFAR is not a standalone product. Instead, you can purchase it as an add-on to your standard travel insurance policy, making it ideal for travelers seeking maximum cancellation flexibility.

How Does CFAR Work?

Standard travel insurance protects against specific trip-related losses, including cancellations due to medical emergencies, severe weather or other specified reasons. CFAR expands cancellation options by allowing you to cancel for almost any reason, provided you meet specific conditions.

Add CFAR coverage within 10 to 21 days of purchasing travel insurance.

Cancel at least two days before your trip starts.

Reimbursement is typically 50 to 75% of non-refundable expenses.

For example, CFAR can help if you decide not to travel due to changing personal circumstances, even if your reason isn’t under standard policies.

What Does CFAR Cover?

CFAR insurance offers broad coverage for cancellations, though exact terms vary by provider. Typical scenarios where CFAR may apply include:

Changes in personal plans, like work conflicts or loss of interest in the trip.

Family or legal issues, such as divorce or the illness of a non-immediate family member.

It can also cover cancellations due to:

Serious illness or injury affecting you, a companion or a family member.

Job loss affecting you or a companion.

A natural disaster at your destination makes the trip impossible.

However, CFAR does not reimburse for refundable expenses or interruptions after the trip begins.

Costs of CFAR Insurance

Adding CFAR coverage significantly increases the cost of travel insurance. While standard policies typically cost 5 to 10% of your trip’s total expenses, adding CFAR can raise the cost to 40 – 50%.

For example, if your trip costs $5,000, a standard travel insurance policy might cost $250 to $500. Adding CFAR could increase your total premium to $750 or more. While costly, CFAR’s flexibility may justify the price for high-value or complex itineraries.

Benefits of CFAR Insurance

Unlike standard policies, which limit cancellations to specific reasons, CFAR allows cancellation for virtually any reason.

It is particularly useful for travelers concerned about unexpected changes or risks.

CFAR is ideal for trips booked far in advance, accommodating personal or external changes over time.

Limitations of CFAR Insurance

Despite its advantages, CFAR has important limitations:

Not all providers offer CFAR coverage.

Policies typically reimburse 50 to 75% of non-refundable expenses.

CFAR must be added shortly after buying your travel insurance policy.

Trips must be canceled at least two days before departure.

The higher premium may not be worth it for trips with minimal non-refundable expenses.

CFAR also excludes benefits for trip interruptions. For instance, it won’t cover the cost of unused accommodations or additional travel if you need to return home early.

Takeaway

Cancel-For-Any-Reason (CFAR) insurance is a valuable add-on for travelers seeking maximum flexibility and peace of mind. While it increases the cost of travel insurance, it allows you to cancel your trip for almost any reason and recover up to 75% of non-refundable expenses.

For expensive trips, long-term plans or uncertain circumstances, CFAR offers a safety net that standard travel insurance doesn’t. By weighing the benefits, costs and limitations, you can decide if CFAR is the right choice for your travel needs.