Cancel For Any Reason (CFAR): Is It Worth It for Your Next Trip?
Travel plans can be unpredictable, and Cancel For Any Reason (CFAR) insurance offers the ultimate flexibility for when the unexpected happens—or when you simply change your mind. Unlike standard travel insurance, which only covers specific unforeseen events, CFAR gives you the freedom to cancel your trip for reasons not typically covered and still receive a significant reimbursement. Here’s what you need to know about CFAR, how it works, and whether it’s the right choice for your next adventure.
What Is Cancel For Any Reason (CFAR) Coverage?
CFAR is an optional upgrade to standard travel insurance that reimburses a percentage (typically 50–75%) of your prepaid, nonrefundable trip costs if you cancel for reasons outside the scope of traditional trip cancellation coverage. Whether it’s fear of travel, changing plans, or even bad weather, CFAR gives you more control over your plans.
However, CFAR comes with a few requirements:
You must purchase it within 14–21 days of your initial trip payment.
You must insure 100% of your prepaid, nonrefundable trip costs.
You must cancel your trip entirely at least 2–3 days before departure.
While CFAR increases your premium, the added flexibility can be worth it for travelers seeking peace of mind.
How Does CFAR Work?
CFAR covers a wide range of nonrefundable travel expenses, including:
Airfare
Hotel stays
Cruises
Rental cars
Excursions and event tickets
For example, let’s say you cancel a trip because your passport is delayed, or you decide not to travel due to bad weather. With CFAR, you can still recoup 50–75% of your nonrefundable expenses.
Keep in mind, CFAR doesn’t cover refundable costs. If an airline or hotel offers credits or vouchers for cancellations, those amounts aren’t reimbursed under CFAR. However, nonrefundable expenses like prepaid museum tickets or nonrefundable hotel bookings may qualify.
Eligibility and Limitations
CFAR policies come with specific rules:
Time-Sensitive Purchase: You must add CFAR coverage within 10–21 days of your first trip payment.
Cancellation Window: You must cancel your trip no later than 2–3 days before departure.
Partial Reimbursement: CFAR typically covers 50–75% of eligible costs.
Full Trip Coverage: You must insure 100% of your nonrefundable trip expenses—partial coverage isn’t allowed.
While CFAR offers unparalleled flexibility, it’s essential to understand these limitations to decide if it’s the right fit for your travel plans.
Is CFAR Worth It?
Adding CFAR coverage to your travel insurance plan will increase your premium by 40–50%. For example, insuring a $5,000 trip with standard travel insurance might cost $250–$500. With CFAR, that premium could jump to $750.
CFAR is ideal for travelers with specific concerns—like fear of travel during a pandemic or uncertainty about their plans—not covered by standard trip cancellation policies. If flexibility and peace of mind are worth the added cost, CFAR may be a smart investment.
Cancel For Any Reason (CFAR): Is It Worth It for Your Next Trip?
Cancel For Any Reason insurance provides a valuable safety net for travelers who want maximum flexibility. While it comes at a higher price, CFAR’s ability to cover a wide range of cancellation reasons makes it an excellent option for those with specific concerns. Before deciding, review the cancellation benefits included in your standard travel insurance policy. If they fall short of your needs, CFAR might just be the extra layer of protection you’re looking for. Ultimately, the best travel insurance is the one that gives you the confidence to book your trip knowing you’re covered, no matter what.
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