Is cancel for any reason travel insurance worth the extra cost?
Summary
Cancel for any reason (CFAR) travel insurance can reimburse part of prepaid trip costs when travelers cancel for reasons that standard policies may not cover. It costs extra and may be most useful for expensive trips with substantial nonrefundable costs and uncertain plans; travelers with refundable bookings may get little added value.Key Facts
- Standard travel insurance typically covers prepaid expenses when a traveler cancels for a listed reason, such as unexpected illness or injury.
- Standard policies may not cover cancellations due to a work-schedule change, destination concerns, or a decision not to travel.
- CFAR coverage allows cancellation for reasons that may not qualify under a standard policy.
- CFAR coverage has a higher premium than standard travel insurance.
- The article says CFAR policies may reimburse 50% to 75% of eligible expenses.
- CFAR may be worth considering for costly trips with substantial nonrefundable bookings and uncertain plans.
- Refundable airfare, flexible hotel cancellation terms, and low upfront costs can reduce the value of CFAR coverage.
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