When Does Cancel For Any Reason (CFAR) Travel Insurance Come Into Play?
Whether you travel by boat, car, plane, or another form of transportation, you have a multitude of travel insurance options. There are many providers and plans to choose from and it can be a daunting task to find the right coverage for your trip, especially if you aren’t an insurance expert. That’s where TravelInsurance.com comes in -- we make it easy to compare plans, prices and benefits from multiple top rated providers, so you can buy the policy that fits your needs.
The important thing to note is that not all travel insurance plans are created equal. Unlike auto insurance that protects you against most vehicle-related incidents, travel insurance is not always a one size fits all coverage. When it comes to standard trip cancellation coverage in a travel insurance plan, travelers should be aware that it will cover them for a broad range of covered reasons, but not every reason under the sun. When a traveler needs to cancel a trip for a circumstance outside of the covered reasons listed in a policy, Cancel for Any Reason, or CFAR travel insurance, comes into play.
What is CFAR?
Cancel for Any Reason travel insurance, or CFAR, is a travel insurance add-on for many existing travel insurance plans. Many travel insurance companies will offer CFAR coverage as an optional upgrade on the checkout page at the time of plan purchase. CFAR covers the circumstances that are excluded from a regular travel insurance policy.
As the name implies, CFAR allows travelers to cancel for any reason at all. CFAR policies are designed to fill in coverage gaps in regular travel insurance policies and can be a great way to hedge against the many scenarios that can go wrong leading up to your trip departure date. It is important to note that the CFAR benefit must generally be used at least 48 hours or more prior to your scheduled departure date.
Purchasing Travel Insurance
As we mentioned before, not all travel insurance policies are created equal. Different companies will offer policies that include and exclude different circumstances related to your trip cancellation scenario. Some may offer covered reasons related to hurricanes while others won’t and some will offer covered reasons related to terrorism when others do not. When viewing travel insurance plans on TravelInsurance.com, you can click on the trip cancellation benefit to read the covered reasons and ensure they meet your needs. It is imperative to make sure that the policy covers what you want it to include based on your risk factors, and to consider the CFAR upgrade when you want to be able to cancel for any reason at all.
Some credit cards offer travel insurance as a benefit of having the card. While these policies can sometimes be comprehensive and beneficial to travelers, it should be noted that travel insurance connected to credit cards do not include Cancel for Any Reason coverage. All the more reason to read the fine print!
Purchasing Cancel For Any Reason Insurance
CFAR insurance is an add-on to a travel insurance policy. Travelers need to first choose a base policy and then select the CFAR benefit as an optional upgrade at checkout. In many cases, CFAR can cost you approximately 40% more than the base policy price. For example, if you are honing in on a $100 travel insurance plan, the CFAR add-on will be roughly $40, so your insurance could cost you $140 for your trip.
Cancel for Any Reason travel insurance is more expensive than regular travel insurance policies because it takes on more risk and offers more coverage and flexibility to the insured given that a trip can be cancelled for any reason at all. Given the additional risk for the insurer, CFAR will only cover 50-75% of the insured trip costs and there aren’t any CFAR policies that cover 100% of the trip cost. Only standard trip cancellation (for specific covered reasons) will cover 100% of your trip cost. For many people, the added cost for CFAR is well worth the peace of mind that comes with the ability to cancel or alter travel plans without losing the total trip cost.
Benefits of CFAR
With a regular travel insurance policy with trip cancellation coverage, the reasons for cancellation could include:
- Unexpected Injury
- Unexpected Illness
- Inclement Weather
- Natural Disasters
- Mandatory Evacuations
- Bankruptcy / Financial Default of Travel Supplier
- And more.
When you purchase a plan with the CFAR option included, you can cancel for any reason at all, including but not limited to:
- Worries or fear of traveling
- State Department travel warnings
- Government travel bans
- CDC Alerts
- Not feeling up for your trip
- And anything under the sun.
When purchasing travel insurance, it is always important to read the fine print so that you know what circumstances are covered and which are not. Additionally, knowing your travel policy limits can help you determine whether a CFAR policy will be required for your trip.
A regular travel insurance policy can exclude travel cancellations related to:
- Pre-existing conditions
- Illness or death of a pet
- Self-inflicted injuries
- Losses occurring while intoxicated
- Epidemics or pandemics
A CFAR policy can include coverage for typically excluded circumstances such as:
- Epidemics or pandemics
- Work reasons not covered under the policy
- Relationship issues
- CDC or State Department warnings
- Foreseen circumstances
- Unease about traveling
- And many different situations not covered by regular travel insurance.
CFAR allows you to cancel your trip for any reason as long as you follow the guidelines listed in the policy. Most policies will enable you to cancel your trip if you do it at least two or three days prior to your intended departure. You’ll need to purchase your policy within 14-21 days of your initial trip payment (whether partial or whole) and insure 100% of your pre-paid and non-refundable trip costs. Remember that CFAR will only cover 50-75% of your insured trip costs, depending on the plan.
Do You Need CFAR Insurance?
Like many travelers, you want to balance the cost of what travel insurance and a CFAR upgrade will cost with the coverage you will receive. If your trip is relatively quick or inexpensive, you might choose not to purchase travel insurance for the cancellation coverage (remember, you can still purchase for the emergency medical and evacuation coverage). The cost of insurance may be high relative to what your trip is worth. However, for more expensive trips or trips involving multiple destinations and modes of transportation, CFAR insurance is highly beneficial. It can allow you to recoup the costs associated with canceling your trip when unexpected issues arise.
Unexpected travel mishaps can occur at any time. In a rapidly changing world, maintaining control over what you can cancel in terms of your travel arrangements can make a big difference. CFAR insurance can give you peace of mind knowing that any circumstance is covered. With the many changes to the world we are traveling in today, CFAR insurance allows travelers to cancel or alter their plans quickly. Ultimately, travel insurance and CFAR coverage are here to minimize the financial losses that can occur when travel plans are canceled or changed because of circumstances outside our control.
Travelers are not able to retroactively purchase a CFAR policy for a trip that has already occurred or once they are outside of the 14-21 day window from putting any money towards their trip. CFAR is a pre-departure benefit so it is important to buy your policy in a timely manner after booking your trip.
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