‘Cancel for Any Reason’ Insurance: What to Know

While travel insurance may be something you previously overlooked during the trip-planning process (and probably won’t anymore, as we all watch the COVID-19 pandemic change life as we know it), it has become more important than ever to consider purchasing an insurance policy. Some travel insurance companies offer policies that allow you to “cancel for any reason,” which often cost a lot more than standard policies but can be extremely helpful when sticky situations arise. Here are a few things to know about such insurance policies.

They’re different from normal cancellation plans. Most travel insurance plans cover unexpected cancellations for various reasons, like natural disasters or political unrest, but these only apply when you purchase the policy before the event is a known potential threat. However, with insurance that lets you cancel for any reason, the policy can be purchased even after the event is well-known.

There are booking conditions. Also known as “CFAR,” insurance that allows you to cancel for any reason typically must be acquired within 7 to 21 days of the day you make your travel booking.

CFAR insurance costs (a lot) more. Upgrading to CFAR insurance usually costs about 5 to 10 percent of the total cost of your trip. Depending on the total cost of your trip, of course, policies can add hundreds of dollars to your vacation. Prices also vary due to age: Policies for older travelers cost more than those for younger travelers. Policies can be purchased through insurance providers like AAA or Allianz or travel insurance-specific sites like TravelInsurance.com and Squaremouth, the latter of which lets you compare plans from multiple providers.