Cancel for any reason (CFAR) travel insurance: How it works, how much it costs, and whether it's worth it

What is cancel for any reason travel insurance?

CFAR is an optional add-on to a comprehensive travel insurance plan that reimburses part of your prepaid, nonrefundable trip costs if you cancel for any reason not covered by the base policy.

You must purchase a travel insurance plan and CFAR at the same time, typically 14-21 days after the initial payment for the trip. CFAR will reimburse you for 50% to 75% of your prepaid nonrefundable expenses for any reason, even if you just have a change of plans, travel anxiety, or a destination that no longer appeals.

“CFAR is the best option for travelers who wish to cancel for reasons outside of standard cancellation triggers listed in the policy. Examples of common covered reasons include inclement weather, death, sickness, injury, mechanical breakdown of a common carrierAn insurance carrier is the company that provides your car insurance policy and pays claims., strikes, military leave being revoked, etc. These vary by plan,” said Angela Borden, manager of product and underwriting at Seven Corners, a travel insurance company.

CFAR allows cancellation for any reason, even if you just change your mind.

“If the risk is based on the insured wanting to cancel their trip based on their own situation, like a change of mind, fear of travel, a personal financial hardship, CFAR fills that gap.”

How does cancel for any reason travel insurance work?

CFAR insurance must be purchased within a specified window, 100% of your trip’s prepaid, non-refundable expenses must be insured, and cancellation must occur within a specific timeframe. 

1. CFAR must be purchased soon after your initial trip payment, typically within 14 to 21 days, depending on your policy. After that, CFAR is no longer available.
2. CFAR coverage must be for all of your nonrefundable expenses, including airfare, hotels, excursions, and other related trip costs. You can’t pick and choose what CFAR covers.
3. You must cancel your trip within a specified window, typically 2-3 days before departure, depending on your policy. If you cancel outside of the window, your standard trip cancellation coverage may still apply if it’s for a covered reason, but coverage is more limited.
4. File a CFAR claim with your insurer and include receipts, invoices, the reason for canceling, proof of cancellation, and other documentation. CFAR won't reimburse expenses you've already been refunded for, such as airline rebooking fees.
5. Receive the refund for your expenses. Plans typically reimburse 50-75% of nonrefundable costs that you have paid in advance.

Cancel for any reason vs. trip cancellation insurance

Trip cancellation insurance reimburses only for reasons specifically listed in the policy, but CFAR reimburses for any reason the traveler chooses, subject to eligibility and timing rules.

Note that trip cancellation and CFAR are not mutually exclusive. A traveler who purchases CFAR still benefits from the base policy's full reimbursement for covered reasons. CFAR fills the gap for reasons outside the covered list.

How to qualify for cancel for any reason coverage

To qualify for CFAR, you must purchase it after your initial trip payment, insure 100% of your nonrefundable expenses, such as airfare, hotels, and tours, and cancel within 2-3 days of departure.

1. CFAR must be added within the confirmed eligibility window after the first trip deposit, typically within 14-21 days. If you miss this deadline, coverage cannot be added.
2. Insure 100% of your prepaid non-refundable expenses. You can’t pick and choose which expenses to cover.
3. Cancel within the confirmed timeframe before scheduled departure. Timeframes vary by policy, but are typically 2-3 days before departure. If you cancel outside the required window, CFAR benefits won't apply.
4. CFAR is not available in every state. Travelers from New York and Washington are not eligible for coverage.
5. If you are traveling in a group, you must all cancel your trip for CFAR to cover expenses. CFAR does not allow one person to cancel while everyone else continues.

How much does cancel for any reason travel insurance cost?

CFAR adds around 40-60% more to the cost of your travel insurance policy. A comprehensive travel insurance policy costs an average of 4-10% of your trip cost, and CFAR adds another 3%, bringing the total premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. to about 7-13% of your trip cost. 

The table below offers estimates of travel insurance and CFAR costs based on industry averages from travel insurance provider Squaremouth. Actual costs vary by traveler age, destination, trip length, insurer, and coverage. Get a personalized quote to learn how much CFAR will cost for your trip.

What factors affect the cost of CFAR?

• Traveler age: Older travelers typically pay higher base travel insurance rates, which increases the total cost of adding CFAR.
• Trip length: Longer trips cost more to insure because risks are higher over a longer period.
• Number of travelers: Policies covering multiple travelers have higher total premiums, but costs per person may be lower.
• Destination: International trips cost more to insure than domestic trips because they may involve higher medical risks and more expensive travel arrangements.
• Total trip costs: CFAR is a percentage of your insured trip costs, so more expensive trips result in higher CFAR costs.

Is cancel for any reason travel insurance worth it?

CFAR insurance is worth it if you have a high-value, largely nonrefundable trip booked well in advance with uncertainty about whether the trip will happen.

CFAR is worth it for:

• High-value trips where most costs are nonrefundable
• International trips booked many months in advance
• Trips involving nonrefundable cruise deposits or tour packages
• Travelers with personal or professional circumstances that may require last-minute cancellation, such as a new job, an elderly family member, or an upcoming medical procedure
• Destinations with known uncertainty closer to departure, like hurricane season or geopolitical instability

CFAR is not worth it for:

• Trips where most costs are refundable
• Last-minute bookings where the CFAR eligibility window has already closed
• Travelers whose most likely cancellation scenarios are already covered by the base policy's covered reasons
• Lower-cost trips where the additional premium outweighs the potential benefit

What does cancel for any reason travel insurance not cover?

CFAR does not cover 100% of trip expenses, cancellations outside of the plan window, or other plan-specific reasons.

CFAR doesn’t cover:

• 100% of trip costs. CFAR reimburses only a portion of eligible prepaid, nonrefundable trip expenses, based on your policy's reimbursement rate, typically 50-75%. 
• Cancellation after the required cutoff before departure. Your trip must typically be canceled 2-3 days before your scheduled departure, depending on your plan. 
• Expenses that aren't eligible under the policy. Only prepaid, nonrefundable travel arrangements purchased through eligible travel suppliers are covered for reimbursement.
• Travelers from certain states. New York and Washington have insurance regulations that don’t allow CFAR to be offered.
• Partial group cancellations when multiple travelers are insured under the same policy. All travelers must cancel the trip together. 
• Policies purchased after the eligibility window. You must buy CFAR within a specified window, typically within 14-21 days of your initial trip payment. This is also the timeline for adding a pre-existing-conditions waiver, if necessary.
• Reimbursement is reduced by any refunds already received from airlines, hotels, or other suppliers. You can’t get a refund and apply for CFAR to cover the same expenses.

When should you buy cancel for any reason travel insurance?

CFAR must be purchased within the confirmed eligibility window after the first trip deposit, typically within 14-21 days. The eligibility window starts with your first nonrefundable trip payment and not when you've finished booking every part of the trip. 

1. The clock starts with the first trip deposit. 
2. CFAR must be purchased within a specific timeframe, typically within 14-21 days after the first deposit. 
3. You can’t add CFAR coverage after your window closes.
4. Purchasing travel insurance the same day as the first trip deposit maximizes the eligibility window and also qualifies you for pre-existing condition waivers on the base policy.

Glossary: Key CFAR travel insurance terms

• Cancel for any reason (CFAR): Optional travel insurance add-on that lets you cancel your trip for reasons not covered by standard travel insurance. It gives you more flexibility to cancel your trip, but it usually comes with eligibility requirements and reimburses only a portion of eligible prepaid nonrefundable trip costs.
• Trip cancellation insurance: Reimburses eligible prepaid, nonrefundable trip expenses if you cancel for a reason covered by your policy. Unlike CFAR coverage, it applies only when the reason for cancellation falls under the policy's covered reasons.
• Nonrefundable trip cost: An expense you cannot recover from the travel provider if you cancel your trip. These costs are typically the expenses eligible for reimbursement under trip cancellation insurance or CFAR, subject to policy terms.
• Prepaid trip cost: An expense you pay before your trip begins, such as airfare, lodging, or a tour. Only eligible prepaid expenses listed in your policy are eligible for reimbursement.
• Reimbursement rate: The percentage of eligible trip costs an insurance policy will repay after a covered claim. CFAR typically reimburses 50-75% of eligible expenses.
• CFAR eligibility window: The period during which you must purchase a policy or upgrade to qualify for cancel for any reason coverage, typically 14-21 days from trip deposit. Missing this deadline means CFAR coverage is unavailable for that trip.
• Travel supplier: The company providing the travel service, such as an airline or cruise line. Whether a supplier issues a refund can affect which expenses remain eligible for reimbursement under CFAR insurance.
• Pre-existing condition waiver: Removes the policy's exclusion for certain medical conditions when eligibility requirements are met. Purchasing coverage within the required timeframe, usually 14-21 days from trip deposit, is often necessary to qualify.
• Covered reason: A specific event listed in the insurance policy that qualifies you for benefits under standard trip cancellation coverage. If your reason for canceling is not covered, CFAR may provide an alternative.
• Interruption for any reason (IFAR): An add-on available on some travel insurance plans that allows you to end a trip early for reasons not otherwise covered. It is separate from CFAR because it applies after your trip has started rather than before departure.

Sources

Squaremouth. “Cancel for Any Reason Travel Insurance.” Accessed August 2026

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