Cancel For Any Reason (CFAR) Travel Insurance: How It Works & Is It Worth It in 2026?

March 25, 2025 - Beckah Morris

Last Updated on 2/26/2026

When you schedule a getaway, the hope is that you’ll be able to go, right? But in reality, sometimes things come up and you just can’t make it. In those unfortunate situations, we can at least be sure to protect ourselves from the additional burden of having to foot the bill for a trip we couldn’t take with travel insurance. So, is buying the extra cancel for any reason travel insurance worth it?

Quick Answer:
Cancel For Any Reason (CFAR) travel insurance is an optional upgrade that allows you to cancel your trip for reasons not covered under standard trip cancellation coverage. Most CFAR plans reimburse 50–75% of your prepaid, nonrefundable costs and must be purchased shortly after your initial deposit.

Key Takeaways

• CFAR reimburses 50–75% of nonrefundable costs.

• It must be purchased within 1–21 days of first deposit.

• You must cancel your trip at least 48 hours before departure.

• It increases policy cost by roughly 8–15%.

• It’s ideal for travelers wanting maximum flexibility.

Jumping Ahead

• What is Cancel for Any Reason travel insurance?

• Standard Trip Cancellation vs. CFAR

• What does Cancel for Any Reason travel insurance cover?

• How does CFAR work?

• How much does Cancel for Any Reason cost?

• Who Should Consider CFAR?

• When CFAR May Not Be Worth It

• Where can I find the best CFAR plans?

• Is Cancel for Any Reason travel insurance worth it?

• Common Misconceptions About CFAR

• Cancel for Any Reason Travel Insurance FAQs

What is Cancel for Any Reason travel insurance?

Cancel for Any Reason is an optional upgrade insurance benefit offered with some comprehensive travel insurance that allows more flexible cancellation terms than standard plans.

Most comprehensive plans include a standard benefit called Trip Cancellation coverage that protects 100% of your insured nonrefundable amounts should you need to cancel your trip due to a covered event. Note that if you nix your trip for reasons not named in the policy, your claim might be denied if you don’t have CFAR coverage.

So, what isn’t covered by standard coverage? Common cancellation events that many policies with standard plans may exclude are:

• Pandemics or epidemics

• Changes in travel advisories of destination

• Foreseen events

• Known storms or hurricanes

• War or civil unrest at your destination

• Fear of travel

Pro Tip: If any of these reasons above are some of your main concerns for travel, we’d recommend opting for a plan with Cancel for Any Reason coverage.

Standard Trip Cancellation vs. CFAR

Standard trip cancellation is included with most travel insurance policies if you’re insuring any of your nonrefundable trip costs. However, Cancel for Any Reason is an optional upgrade and isn’t always included with each plan option to add on.

Key differences at a glance:

Reimbursement Levels: Standard cancellation typically pays back 100% of your non-refundable costs, while CFAR generally only covers 50% to 75% (depending on the policy).

The 48-Hour Rule: Unlike standard coverage, which allows you to cancel your trip at the last minute, CFAR requires you to cancel your trip at least 48 hours prior to your scheduled departure.

The Purchase Window: You cannot add CFAR at the last minute; it almost always must be purchased within a strict 1–21 day window of making your very first trip payment or deposit.

Comparison: Standard Cancellation vs. Cancel for Any Reason (CFAR)

Feature	Standard Trip Cancellation	Cancel for Any Reason (CFAR)
What’s Covered?	“Named Perils” Only: Specific reasons listed in the policy (e.g., sudden illness, injury, death, jury duty, or job loss).	Literally Anything: Change of heart, fear of travel, pet emergencies, or even “just because.”
Reimbursement Amount	100% of your insured, non-refundable trip costs.	Usually 50% or 75% of your non-refundable trip costs.
Purchase Deadline	Can usually be purchased any time up until the day before you depart.	Strict window: Must be purchased within 1–21 days of your first trip payment.
Cancellation Deadline	You can cancel up until the moment of your scheduled departure.	You must cancel at least 48 hours prior to your scheduled departure.
Cost of Coverage	Included in the base price of a comprehensive travel insurance plan.	Optional Upgrade: Typically adds 40% to 60% to your base premium cost.
Proof Required	High: Requires documentation (e.g., a doctor’s note, death certificate, or proof of layoff).	Low: No “reason” documentation is needed; you only need to prove you cancelled with your travel providers.
The “Foreseen” Rule	Strict: Does not cover “known” events (e.g., a hurricane that has already been named).	Bypassed: Covers you even if a situation becomes “foreseen” after you buy the policy.

 

What does Cancel for Any Reason cover?

Cancel for Any Reason (CFAR) coverage lets you cancel your adventure for any reason at all. This even goes for events that aren’t listed under standard plans. Note that policy exclusions may still apply here.

“Events that normally aren’t covered under standard policies like pandemics, imperfect weather, and change of mind could be covered under Cancel for Any Reason”, says Terry Boynton, co-founder and president of Yonder Travel Insurance.

The CFAR benefit will reimburse you 50-75% (depending on the policy) of your insured, nonrefundable trip costs if you call off your trip for an event not covered by standard cancellation terms. However, most policies on the market currently offer a 75% reimbursement rate.

Unfortunately, CFAR travel insurance policies that provide a 100% reimbursement of your trip costs don’t exist. This is mainly due to the cancellation flexiblity it offers to travelers.

How does Cancel for Any Reason Travel Insurance work?

Since CFAR provides such extremely flexible coverage, there are a few eligibility requirements you have to meet to purchase this specific upgrade.

• You must purchase the policy within the specific time-sensitive period (usually 1-21 days after making your first trip deposit or payment)

• You must insure all (not just a portion) of your nonrefundable prepaid travel costs under your policy

• You must call off your vacation at least 2 days prior to your departure date

How a CFAR Claim Works

Should you need to cancel your trip, you can file a claim under your trip cancellation benefits. If you bought CFAR coverage, the claims analyst will first see if your cancellation reason qualifies for full reimbursement under regular trip cancellation coverage. If the reason you’re cancelling isn’t due to a covered reason in the policy, they’ll process your claim under CFAR, which usually reimburses 75% of your trip costs.

How much does Cancel for Any Reason cost?

Like most insurance plans, pricing is mostly based on the age of the traveler and the cost of their trip. This is why it’s important to compare plans to find the most affordable option since CFAR policies can cost anywhere from 8-15% of your nonrefundable trip cost. This is a higher price point than standard trip cancellation plans, which usually range from 4-8% of your nonrefundable trip cost.

For example, for a $5,000 trip:

• Standard policy could cost: $250–$350

• CFAR upgrade could cost an additional: +$100–$200

Who Should Consider CFAR?

Not every traveler necessarily needs to purchase Cancel for Any Reason coverage. However, here are some examples of certain travelers that might gain from the benefit of extra peace of mind:

• Travelers booking far in advance and are unsure of what circumstances might cause them to cancel at that point

• Expensive international trips where you’d want to receive most of your trip costs back for any reason

• Travelers worried about geopolitical changes that could affect them getting to their destination or feel comfortable traveling

• Travelers with uncertain work schedules or are self-employed

• Cruises with high nonrefundable deposits the traveler wouldn’t want to lose

When CFAR May Not Be Worth It

Due to the added cost of CFAR, it’s not the most practical option for everyone. Plus, it might not add value for certain trips or specific situations.

• Travel concerns of traveler are commonly covered under standard trip cancellation coverage

• Cheap domestic trips that have lower risk of losing trip costs

• Flexible airline tickets that allow rescheduling or receiving credits

• Fully refundable accommodations that don’t include any risk of loss

• Short-notice bookings since CFAR usually requires you to cancel your trip a few days before departure

Where can I find the best Cancel for Any Reason plans?

To compare travel insurance policies with CFAR coverage, simply run an instant quote our site and select the filter displayed below. If you’re within the time-sensitive period to purchase this optional benefit, you should see plans with the CFAR displaying.

Our team of friendly humans can help you find a plan with the right cancellation insurance so you can plan your getaway worry-free. Give us a call or shoot us an email to walk through which travel insurance plan has the benefits you need.

Is Cancel for Any Reason travel insurance worth it?

Just like the spread of COVID-19, our world can change dramatically over just a few months. If you want to protect part of your trip expenses regardless of the reason, consider CFAR coverage. Although pricey, travelers looking to be partially reimbursed for the extra flexibility usually say the peace of mind is well worth the additional premium.

Not Sure If CFAR Is Right for You?

Take our 60-second quiz to see whether Cancel For Any Reason coverage makes sense for your trip.

Examples CFAR is Worth It

Cancel for Any Reason Example #1:

You’ve booked your family getaway to Mexico and planned on staying at a vacation rental. However, due to some apprehension, you canceled the trip, even though your Airbnb had a strict cancellation policy. CFAR coverage would provide 75% reimbursement for those prepaid, non-refundable payments you made towards your getaway.

Cancel for Any Reason Example #2:

Imagine you booked a trip to Europe a year ahead, but as your departure nears, you feel uneasy due to political unrest and a family emergency. With (CFAR) coverage, you can cancel your trip for these concerns and receive a 75% reimbursement of your insured trip costs. That way, you can prioritize your family without losing your investment.

Common Misconceptions About CFAR

Although Cancel for Any Reason travel insurance is becoming more popular due to the flexible cancellation terms, here are some the top misconceptions :

Misconception #1: “I can add CFAR coverage whenever I want.”

As we’ve already discussed, CFAR is a time-sensitive upgrade. That means even if you decide you want Cancel for Any Reason later on, it might be too late to add it to your plan if it’s been longer than 21 days since your initial trip deposit date.

Misconception #2: “I have to insure my entire trip cost upfront.”

Not necessarily.

You can insure just your initial trip deposit when you first purchase your policy. Then, as you make additional payments toward your trip, you can increase your insured trip cost.

However — and this is key — those additional payments must be insured within the same time-sensitive window required by your policy (typically within 1–21 days of each payment).

If you wait too long to insure new payments, those amounts may not be eligible for CFAR coverage.

Misconception #3: “I don’t need to give a reason if I cancel with CFAR.”

It’s true that CFAR allows you to cancel for reasons not otherwise covered under standard trip cancellation benefits.

However, when filing a claim, you should still list your reason for canceling.

Why?

Because the claims analyst will first review your cancellation under your standard trip cancellation coverage. If your reason qualifies as a covered event, you could receive up to 100% reimbursement instead of the typical 75% reimbursement under CFAR.

Listing your reason helps ensure your claim is processed under the most favorable coverage available to you.

 

Cancel for Any Reason Travel Insurance FAQs

Remember, this is a time-sensitive coverage. Be sure to reach out to an insurance expert or run an instant quote for your CFAR policy options as soon as you make an initial payment towards your trip.

Tags: cancel for any reason, coronavirus