When buying travel insurance, one of the more common questions travelers have been should I add optional CFAR (Cancel for Any Reason) coverage or are the customary trip cancellation coverage reasons included with the plan enough?
Although they both refer to coverage to cancel one’s trip, each coverage works very differently. Understanding the distinction can help you decide how much flexibility you really want before your trip.
What Does Trip Cancellation Cover without CFAR?
Trip cancellation coverage will reimburse you for up to 100% of your prepaid, non-refundable trip costs you insure, if you have to cancel your trip for a covered reason listed in the policy.
What Are Some Common Covered Reasons?
- Sudden illness, injury, or death of you, a travel companion, or a family member.
- Severe weather that causes cessation of services to reach your destination.
- Job loss, transfer of employment or even a work requirement that conflicts with you or your companion’s trip
- Natural disaster that renders your accommodations at your travel destination uninhabitable
- A natural disaster such as a blizzard or hurricane that results in a fire, flood or other damages that makes you or your traveling companion’s home uninhabitable.
- A terrorist incident at your departure city or destination
- A traffic accident you are involved in while en route to your departure.
- Bankruptcy or default of your travel supplier
If these or other reasons are on the list of covered perils in the plan you choose, you can receive up to 100% reimbursement of your non-refundable trip costs, even if you have chosen optional CFAR coverage
Learn more about comprehensive travel insurance plans
What Is CFAR (Cancel for Any Reason)?
CFAR is an optional upgrade available on select travel insurance plans. It expands your flexibility beyond standard covered reasons. Think of CFAR as covering all the other reasons one may want to cancel a trip.
With CFAR, you may cancel for any reasons such as:
- You simply no longer wish to travel
- Social unrest or economic uncertainty
- Personal concerns not otherwise covered
- An event conflicts with your trip, i.e. a school reunion, a family wedding or other celebrations you do not wish to miss.
Important CFAR Coverage Conditions:
- Must be purchased within 14 days of your initial trip deposit
- You must insure 100% of your prepaid trip costs
- You must cancel at least 48 hours before departure
- Reimbursement is limited to 75% of your insured non-refundable trip costs.
Not available in NY or WA
When Is Standard Coverage Enough?
Standard trip cancellation works well if:
- You’re comfortable with clearly defined coverage
- You want strong protection at a lower premium
- You wouldn’t cancel unless it was only for a covered reason
For many travelers, this provides sufficient peace of mind.
When Should You Consider CFAR?
CFAR may make sense if:
- You’re booking far in advance
- You want maximum flexibility
- You’re concerned about unpredictable global conditions
It’s especially popular for cruises, luxury tours, bucket-list vacations and domestic trips.
The Bottom Line
Standard trip cancellation = Up to 100% reimbursement for specific covered reasons in the policy.
Optional CFAR = Up to 75% reimbursement for any reason not specifically covered in the policy.
The right choice depends on how much flexibility you want before departure.
If you’re unsure which option fits your trip and when to purchase travel insurance, the team at TME Travel Insurance can help you compare plans and determine whether a CFAR upgrade is worth it for your situation.
Other Blogs to Help Plan Your Travel
Essential International Travel Planning Tips – Help Avoid Costly Mistakes