How to Buy Cancel for Any Reason Travel Insurance

Here’s what to consider before adding CFAR insurance to your travel insurance.

If you’re planning a trip, purchasing travel insurance can offer some peace of mind, especially if you’re taking a long vacation or traveling abroad. But if you’re concerned about the possibility of changing your plans at the last minute, cancel for any reason (CFAR) travel insurance can be a smart choice. It’s an add-on to a travel insurance policy that reimburses you if you have to cancel your trip for a reason not already covered by your policy. 

The best CFAR travel insurance will depend on your personal situation, coverage needs, and budget. In this article, we’ll explain how to buy CFAR insurance and what factors to consider as you compare different CFAR travel insurance policies.

Assess Your Needs

Before you start shopping for CFAR travel insurance, it’s important to consider your unique needs. Here are some of the most important factors to think about.

Reimbursement Rate

CFAR policies include a reimbursement rate, which is a percentage of the trip cost you’ll get back for a covered cancellation. If you’re spending a significant amount of money on travel and want the highest amount of coverage possible, make sure to choose a policy that offers enough reimbursement to meet your needs. A good rule of thumb is to choose a CFAR plan with at least a 75% reimbursement rate. 

Important: Cancellations covered by a policy’s trip cancellation coverage are subject to limits and those limits vary based on the company. For example, Travel Guard by AIG provides up to $150,000 in coverage, but HTH Travel Insurance only covers up to $50,000.

Where You’re Traveling

It’s important to consider your destination when buying CFAR travel insurance. For instance, if you’re traveling to a country with political unrest, it’s possible that a travel restriction could force you to cancel the trip and lose money. Or, if you’re planning a trip to Florida during hurricane season, you might want the option to cancel your trip if a major storm is expected to hit while you’re there.

Think about the potential risks that could occur and cause you to cancel the trip. Then, as you’re comparing CFAR travel insurance policies, make sure that those reasons for cancellation are covered.

Who You’re Traveling With

You should also consider who you’re traveling with. For example, if you’re taking a family vacation with your young children, look for travel insurance companies that cover kids for free. Travel Guard by AIG and World Trips cover kids 17 and under at no additional cost.

Also, if you’re planning to travel with your pets, check to see which insurers offer pet medical coverage. A few travel insurance companies will pay for your pet’s medical expenses while traveling, including Allianz and Travelex. However, it’s not a standard offering and the coverage limits vary. 


Buying a CFAR travel insurance policy may not be on your list of expenses for your next vacation. However, if you want to protect your trip from a last-second cancellation, you may want to budget in a CFAR policy. Exactly how much your policy will cost depends on the policy type and company you choose. In our analysis of 18 CFAR travel insurance companies, we found that policy premiums ranged from $121 to $490.

Research Cancel for Any Reason Insurance Companies

It’s a good idea to research different CFAR travel insurance companies before you decide on a policy. Every CFAR travel insurance company is unique and offers different types and amounts of coverage.

Here are some areas you should research when looking for a CFAR insurance company:

  • What’s covered: Check to see which reasons for cancellation each policy covers. If you have specific concerns in mind, like a pre-existing health condition preventing you from traveling, make sure those things are covered. In general, CFAR policies cover cancellations due to factors that trip cancellation coverage doesn’t cover. 
  • Reimbursement rate: Reimbursement rates vary for each travel insurance company and policy. Keep in mind that few travel insurance companies reimburse 100% of the cost—most offer 50% to 75%.
  • Financial strength ratings: It can be helpful to research financial strength ratings from the credit rating agency AM Best for the travel insurance companies you’re considering. Companies with a rating of A- (Superior) or better are very likely to pay out any claims you make in the near future.
  • Customer reviews: It’s also useful to read customer reviews for each company you’re looking at. Sites like the Better Business Bureau (BBB) and Trustpilot publish customer reviews (both positive and negative) so you can see what type of experience other travelers have had.
  • Get quotes: The cost of travel insurance with a CFAR endorsement depends on many factors, including the company you choose. To find the most affordable policy, get quotes from several travel insurance companies. Many insurers allow you to get an instant quote online.

Compare Cancel for Any Reason Travel Insurance Quotes

Comparing quotes for CFAR travel insurance policies will help you find the best value for your money. Here’s what to consider as you review costs and coverage for various policies.


When it comes to the cost of CFAR travel insurance, the premium is only one component. There are several other cost-related factors you should keep in mind:

  • Payment schedule: If you buy an annual policy, you’ll like have payment options, such as making one annual payment or splitting it into monthly installments. If you get coverage for a single trip, you may have to pay the entire cost upfront.
  • Deductibles: Your deductible is the amount of money you pay out-of-pocket when you make a claim. Policies with a higher deductible usually have lower premiums. Make sure you have enough cash available to cover your deductible.
  • Reimbursement levels: If you choose a policy with a high reimbursement level, the premium will probably be more expensive. For instance, a policy with 100% reimbursement may cost more than a policy with 75% reimbursement. 
  • Coverage limits: Travel insurance policies include a maximum amount of coverage for various categories, like travel delay coverage, emergency medical coverage, and lost baggage. A policy with higher coverage limits usually has a higher premium.

Important: In our research of 18 CFAR travel insurance companies, we found that the average cost of a basic policy was $223, while the average cost of a premium policy was $280.


Pay attention to a policy’s coverage types and limits. Keep in mind that plans with the most coverage, and the highest coverage limits, generally have the highest premiums. If you’re OK with a lower reimbursement level or less coverage for things like missed flight connections, you can typically get a cheaper policy. Some of the coverage options you may be able to purchase include:

  • Missed flight connections
  • Lost baggage protection
  • Medical coverage for certain conditions
  • Coverage for adventure and extreme activities
  • Injuries or illness to pets while traveling
  • Wedding cancellations

Review Policy Terms and Exclusions

All CFAR travel insurance plans have terms and exclusions. For example, most plans won’t reimburse you for the cost of your airfare if you were given a travel voucher or the airline refunded your canceled flight. 

Read your policy’s terms; understand what is and isn’t covered. Some of this information may be easily found online while you’re comparing plans. Once you buy a plan, you will also be able to read the insurance contract, which will list the terms and exclusions in more detail.

If you have any questions about the policy, including what’s covered when you cancel your trip, it’s always a good idea to contact the insurance company. A representative can walk you through the terms and explain what situations would and wouldn’t be covered, and how much coverage the policy provides.

Final Word

If you’re wondering if cancel for any reason travel insurance worth it, the answer is different for every person. CFAR travel insurance can provide added peace of mind. But if you don’t spend much money on your trips, this policy may not be worth the added cost.

While CFAR insurance can be a good addition to your travel insurance policy, the best plan is different for every traveler. You should consider your coverage needs, your budget, and the kinds of trips you take in order to choose the right policy for you. 

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