Why Cancel For Any Reason (CFAR) Travel Insurance is Your New Travel MVP
You’ve mapped out every detail of your vacation—flights confirmed, Airbnb booked, excursions pre-paid, dinner reservations locked in. But then, a wildfire sweeps through California, your destination for a much-needed break. Or your traveling companion suddenly can’t make it. Or maybe, after binge-watching the news, you see flight cancellations rising, and you don’t feel great about your trip anymore.
Standard travel insurance may not offer the flexibility you need in such situations.
Enter Cancel For Any Reason (CFAR) travel insurance—a flexible add-on that lets you bail on your trip for virtually any reason, even ones not typically included under covered reasons in a traditional travel insurance policy.
Let’s break down why CFAR is gaining traction—and why it might be the best travel insurance upgrade you’ll buy this year.
What is CFAR Travel Insurance?
CFAR coverage is an optional add-on to a comprehensive travel insurance plan that lets you cancel your trip and still get partial reimbursement, even if the cancellation reason isn’t included in your policy’s list of covered reasons.
Want to cancel your vacation because your dog’s acting weird? You can. Feeling nervous about traveling post-pandemic? Valid. Are you worried about the wildfire near your resort? You’re covered.
While Trip Cancellation insurance typically only kicks in for specific events—like a family member getting sick or a cancellation due to a hurricane—Cancel For Any Reason travel insurance lets you call it quits, no explanation necessary. Also, canceling without travel insurance could be costly when determining if you are considering insurance.
Most CFAR policies reimburse you for 50% or 75% of your non-refundable trip costs, including flights, hotels, tours, and other prepaid expenses. That can add up to thousands of dollars saved.
How Does CFAR Work?
Here’s the not-so-fine fine print: While CFAR is flexible, there are some precise eligibility requirements.
To qualify for CFAR travel insurance, you must:
- Buy travel insurance (with CFAR as an add-on) within a specific time frame, usually within 14–21 days of your initial trip deposit or payment.
- Insure the total trip cost, which means 100% of all non-refundable trip expenses, not just airfare or hotel.
- Cancel at least 48 hours before your scheduled departure date.
Some travel insurance companies may have additional exclusions, so read the plan document carefully.
Please remember that CFAR is not a standalone product—it’s an upgrade to a regular travel protection plan.
When CFAR is Worth the Additional Cost
Let’s talk numbers. CFAR typically adds the 40%–50% cost on top of a regular travel insurance plan. So, a comprehensive travel insurance plan without any add-ons will typically cost 5-10% of your total insured trip cost. Adding CFAR often requires additional costs, and typically increases premiums by 40-50%..
For example, if you’re insuring a trip that includes $5,000 in prepaid, non-refundable trip costs, you can expect to pay $250-$500 for a comprehensive policy. Adding the CFAR upgrade may increase this premium to as much as $750.
Due to this increase in cost, we only recommend Cancel For Any Reason to travelers who have specific concerns that can’t be covered by their Trip Cancellation insurance.
But consider the alternative: You must cancel a $7,000 luxury cruise because of air quality concerns or a traveling companion backs out at the last minute. Without CFAR? You lose everything. With CFAR? You might recover $5,250 in travel insurance benefits—a significant reimbursement for the cost of your trip.
Who Should Buy CFAR Travel Insurance?
CFAR coverage isn’t necessary for every trip, but it’s ideal if you:
- Are planning a trip during a hurricane, wildfire, or other natural disaster season?
- Have non-refundable costs in bucket list experiences, international airfare, or tours.
- Are booking far in advance when uncertainty looms?
- Have health concerns, or you’re traveling with an at-risk family member.
- Value having a reason to cancel without jumping through hoops.
It’s also a smart move if your credit card travel protection is limited or doesn’t include Trip Cancellation benefits.
Common CFAR Exclusions (And Why the Fine Print Matters)
Just because it says “any reason” doesn’t mean anything goes. Review your insurance provider’s plan document to understand what’s excluded. Some insurance companies may not cover cancellations due to foreseeable events, like war or illegal activity.
Also, CFAR won’t usually reimburse 100% of your trip costs—so don’t expect a full refund unless specified. Most protection plans cap reimbursement at 75% of your insured trip cost.
CFAR vs. Trip Cancellation Coverage: What’s the Difference?
| Feature | Standard Trip Cancellation Insurance | Cancel For Any Reason (CFAR) Travel Insurance |
| Cancellation Coverage | Only for covered reasons (e.g., illness, injury, death of a family member, natural disasters affecting travel plans) | For any reason not covered by standard policy—personal reasons, fear of travel, change of mind, etc. |
| Reimbursement Amount | Up to 100% of non-refundable trip costs | Typically, 50%–75% of nonrefundable trip expenses |
| Eligibility Window | Can often be purchased up until right before departure | Must be purchased within 14–21 days of the initial trip deposit or initial trip payment |
| Cancellation Deadline | Can cancel up to departure if the reason is covered | Must cancel at least 48 hours before the scheduled departure date |
| Trip Cost Requirement | Can insure any amount | Must insure 100% of your total trip cost (all prepaid, nonrefundable expenses) |
| Additional Cost | Included in the base travel insurance policy | Adds 40%–50% to the cost of your travel insurance plan |
| Ideal For | Travelers are confident in their plans but want protection against major disruptions | Travelers seeking peace of mind and flexibility or concerned about unpredictable events |
| Common Exclusions | Changing your mind, fear of travel, general concerns not listed in policy | May exclude certain high-risk events; always read the plan document and fine print |
| Availability | Offered by nearly all travel insurance companies | Only available from select insurance providers as an optional add-on |
Bottom Line: Is CFAR Travel Insurance Worth It?
The travel insurance cost may be higher, but the coverage is far broader. In a world of unexpected pandemics, trip delays, weather events, and shifting schedules, having a CFAR travel insurance policy in your back pocket can be a game-changer.
Whether booking through a travel agent, directly with an insurance provider, or browsing through popular names like Allianz, make sure you compare insurance services side by side. Not all travel insurance companies offer CFAR, and coverage details vary.
Regarding protecting your travel plans, CFAR offers the flexibility most travelers didn’t know they needed—until they needed it.
Ready to Explore Your CFAR Options?
Compare top-rated Cancel For Any Reason travel insurance plans with Squaremouth to find the proper travel protection for your next adventure. Your peace of mind might be just one add-on away.