

Cancel for any reason (CFAR) travel insurance is an optional upgrade that lets you cancel your trip for reasons not covered by standard policies. You’ll typically get back 50% to 75% of prepaid, nonrefundable costs.
Planning a trip involves significant time, money and excitement, but sometimes life throws unexpected curveballs that force you to change your plans. "Cancel for any reason" (CFAR) travel insurance is specialized coverage that provides flexibility when you need to cancel your trip for circumstances not covered by traditional policies.
Here's what you need to know about how CFAR travel insurance works and how to determine whether it's right for you.
CFAR travel insurance is an optional upgrade that provides broader cancellation coverage than standard travel insurance policies. This add-on typically reimburses 50% to 75% of your nonrefundable trip costs when you cancel for reasons not covered by your base policy.
The coverage works by filling gaps that traditional trip cancellation insurance leaves behind. While standard policies cover specific scenarios like medical emergencies, job loss or severe weather, CFAR protects you when personal circumstances change but don't meet those narrow criteria.
With CFAR coverage, you can cancel nonrefundable trip costs for just about any reason and receive partial reimbursement. The "any reason" aspect is what sets this coverage apart from standard trip cancellation policies.
Common scenarios where CFAR provides coverage include:
Learn more: What Does Travel Insurance Cover?
While CFAR offers broad flexibility, it comes with several important restrictions:
Remember, too, that you can't purchase CFAR coverage as a standalone policy—it can only be added to a base travel insurance policy.
The key difference between CFAR and standard trip cancellation insurance lies in the covered reasons and reimbursement rates. Traditional trip cancellation insurance only covers specific, documented reasons like illness, injury, job loss or severe weather, but it reimburses up to 100% of covered costs.
In contrast, CFAR covers virtually any reason you want to cancel, but it typically only reimburses 50% to 75% of your costs.
Standard trip cancellation works best when you have concrete, documentable reasons for canceling. CFAR is ideal when your reasons for canceling are personal, subjective or simply don't fit the narrow criteria of traditional coverage.
CFAR coverage typically adds 40% to 50% to the cost of your base travel insurance policy. So, if your standard travel insurance costs $200 for a $5,000 trip, adding CFAR might add another $80 to $100 to your premium.
That said, the exact cost will depend on factors like your trip cost, destination, age and the duration of your trip. More expensive trips and older travelers generally pay higher premiums for CFAR coverage.
Learn more: Average Cost of Travel Insurance
CFAR travel insurance can be worthwhile in several situations. Here are a handful of examples that may apply to you:
While CFAR might be well-suited to the above situations, it may not be worth it for shorter domestic trips, travelers with flexible schedules or those comfortable with standard trip cancellation coverage limits.
You can purchase CFAR travel insurance through several channels. Here are just a few options to consider:
Before you purchase a policy, it's crucial that you compare coverage details, reimbursement rates and restrictions to make sure you're set.
Learn more: What Is Credit Card Travel Insurance?
The travel insurance claims process can vary by insurance company, but here are some general steps you can take:
CFAR travel insurance offers valuable flexibility for travelers who want broader cancellation protection, but it comes at a higher cost and with lower reimbursement rates than standard coverage.
This add-on works best for expensive trips, uncertain circumstances or travelers who value peace of mind over maximum financial protection. Before purchasing, carefully review the specific terms, reimbursement rates and deadlines in your policy to ensure CFAR coverage meets your travel protection needs.
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Ben Luthi has worked in financial planning, banking and auto finance, and writes about all aspects of money. His work has appeared in Time, Success, USA Today, Credit Karma, NerdWallet, Wirecutter and more.
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