How does Cancel for Any Reason coverage work?

Cancel for Any Reason (CFAR) coverage in travel insurance allows you to cancel your trip for any reason not covered under a standard policy, while still receiving some reimbursement for nonrefundable prepaid trip costs. Usually, CFAR reimburses 50%-80% of these costs based on your plan.

Voluntary Upgrade:

Generally, CFAR is an optional upgrade to a comprehensive travel insurance plan that must be purchased within a limited period after your initial trip deposit, usually, 10-21 days.

Partial Reimbursement:

In contrast to standard trip cancellation, which typically reimburses you up to 100% for covered reasons such as illness or family emergency, CFAR typically reimburses you between 50 and 80% of the trip costs if you cancel for any other reason.

Coverage Requirements:

These are guidelines that you need to meet.

• You must have 100% of your prepaid, nonrefundable trip costs insured.
• Cancellations must be made at least 48 to 72 hours before the scheduled departure, although some plans permit cancellations as late as the day of departure.
• The benefits are only applicable if purchased within the allowed timeframe, and not all travellers may qualify.

Common usage scenarios:

CFAR is useful if you are cancelling for reasons that normally wouldn’t qualify, such as personal travel preferences, changed travel plans, work, safety, or other preference-related issues at the destination.

Important Considerations

Since CFAR increases the premium with additional flexibility, it usually increases by 40%-50% or even more. The reimbursement is between 50% and 75% of trip costs; some providers offer up to 80%. The policy requires you to promptly cancel and notify travel suppliers of your cancellation within the required time frame for coverage to apply. Moreover, not all travel insurance companies provide CFAR; you must pay attention to coverage, eligibility, and the refund amount, as these vary from one company to another.