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Cancel For Any Reason Travel Insurance Explained

You’ve booked your trip and shopped around for the right travel insurance policy. At that point, it would be easy to assume that you’d be fully covered and reimbursed should you need to cancel your trip. You can relax, right?

Unfortunately, that’s not always the case.

Typical travel insurance policies will reimburse you for a canceled trip only in certain scenarios — known as a “covered reason” — which are usually listed in your policy documents. While you can typically get 100% of your non-refundable payments back in those specific covered scenarios, the covered reasons can be fairly specific.

If you’re looking for maximum flexibility and the ultimate peace of mind when booking a trip, then you may want to add Cancel For Any Reason (CFAR) coverage to your standard travel insurance policy. Note that CFAR may not be available in all states.

Cancel For Any Reason coverage is just like it sounds — you can cancel your trip for any reason and recover a percentage of your non-refundable trip costs. The percentage you will be refunded may vary by insurance company, but it’s usually a reimbursement of 50 to 75% of the total insured trip cost.

How Cancel For Any Reason Coverage Works

Understanding the mechanics of Cancel For Any Reason (CFAR) coverage is crucial for any traveler seeking flexibility. Firstly, CFAR is an optional add-on to your standard travel insurance policy. It’s important to note that not all travel insurance policies offer CFAR as an option, so it’s essential to check with your insurance provider.

When you opt for CFAR coverage, there are typically specific requirements to remember. For instance, you often need to purchase the CFAR option within a set number of days (usually 10-21 days) from your initial trip payment. You may need to purchase the plan a certain number of days before departure, and you must also insure 100% of your pre-paid, non-refundable trip expenses.

Filing a claim under CFAR is straightforward but requires adherence to the policy’s guidelines. Most insurers require you to cancel your trip at least 48 hours before your scheduled departure date. When you decide to cancel your trip, you notify your insurer, fill out a claim form, and provide the necessary documentation, such as proof of your trip’s costs.

The reimbursement process varies by insurer. It’s essential to understand that the percentage you’ll receive is based on the total non-refundable costs you’ve insured, not the total trip cost.

Common Scenarios Covered by CFAR

Cancel For Any Reason coverage is designed for those unforeseen circumstances or changes of heart that don’t fall under standard policy’s “covered reasons.” Here are some common scenarios where CFAR can be particularly beneficial:

Personal Indecision

Perhaps you’ve simply changed your mind about traveling. Whether it’s a sense of apprehension or a desire to visit a different destination, CFAR allows you the freedom to decide.

Unexpected Work Commitments

If a critical work obligation arises that isn’t covered under the traditional travel insurance policy, CFAR has you covered.

Family Matters

Situations like a family member falling ill, which may not qualify as a serious enough condition under a standard policy, can be a valid reason for cancellation under CFAR.

Global Uncertainties

Possible political unrest or a sudden pandemic can prompt you to cancel in an ever-changing world. While some of these might be covered under standard policies, CFAR allows you to cancel even if the reason isn’t covered.

Travel Companion Cancels

If your travel companion decides not to go and it affects your plans, CFAR can step in where standard policies might not.

Understanding Eligibility and Restrictions

Navigating the eligibility criteria and restrictions of Cancel For Any Reason (CFAR) coverage is vital for travelers looking to take advantage of this flexible option. While offering broad coverage, CFAR has specific rules and limitations that must be understood to ensure valid coverage.

Timing of Purchase

One of the most critical aspects of CFAR eligibility is the timing of your purchase. To be eligible for CFAR, you must add it to your standard travel insurance policy within a certain period after making your initial trip deposit. This period varies but is commonly within 10 to 21 days of your first trip payment. You also may need to purchase the plan within a certain number of days prior to departure (such as more than 10 days). Missing these windows can mean losing the opportunity for CFAR coverage entirely.

Insuring the Full Trip Cost

Another key eligibility criterion is the requirement to insure the full amount of your pre-paid, non-refundable trip expenses. This includes flights, hotel bookings, tours, and any other non-refundable costs. If you only insure a portion of your trip costs, you might not be eligible for CFAR coverage.

Cancellation Timeline

CFAR policies typically dictate a minimum time frame before the scheduled departure, within which you must cancel your trip. This is often at least 48 hours before your scheduled departure. Canceling closer to your departure date than this minimum timeframe may invalidate your CFAR claim.

Reimbursement Percentage

It’s crucial to understand that CFAR doesn’t typically reimburse 100% of your insured trip costs. Again, most policies reimburse 50% to 75% of the non-refundable costs. This percentage should be clearly stated in your policy documents.

Geographical and State Restrictions

Depending on where you live, CFAR coverage might not be available. Some U.S. states have regulations that affect the availability of CFAR insurance. Always check with your insurance provider to see if CFAR is available in your state or destination.

Should I buy Cancel For Any Reason Coverage?

Cancel For Any Reason Travel Insurance Explained

Cancel For Any Reason coverage can certainly make your travel insurance policy a bit more expensive, so it’s worth asking whether you actually need it. If, at the time of booking your trip, you have some uncertainty about whether or not it will go forward and think you might need to cancel it down the line, it’s a good idea to pay a little extra for the added benefits of Cancel For Any Reason coverage. That way, you can rest assured knowing that your financial investment is protected.

Perhaps you’re not sure if you actually want to go on vacation. Or maybe you suspect that someone in your family or traveling party will have a scheduling conflict which means your trip’s scheduled departure can’t go forward. Or maybe you feel nervous about the destination you’re visiting, and want to judge how you will feel closer to your departure date. Maybe you’re booking a trip to seal an upcoming business deal, but you don’t have total certainty that it will actually go forward.

These are all situations where a Cancel For Any Reason benefit would make sense to have as part of your insurance coverage. If plans change — or even if you simply change your mind — you’ll be able to recoup most of your non-refundable trip payments when you cancel the trip.

If there is some level of uncertainty involved in whether your trip will go forward, purchasing Cancel For Any Reason coverage can be cheaper than waiting until the last minute to book — when you are finally sure you want to go — only to find that flight and hotel prices have soared.

Another great reason to purchase Cancel For Any Reason coverage is if you have any uneasiness about traveling, whether it be due to geopolitical events, your family or financial situation, or anything else that might give you pause. It can be nice to know that you have the option to change your plans if you begin to feel uneasy about embarking on an upcoming trip you’ve booked.

While companies like battleface do provide COVID-19 coverage, a trip cancellation due to COVID would only be covered in certain scenarios, such as if you tested positive for COVID-19 before departure and a doctor told you can’t travel, or if a family member becomes sick with COVID before you depart and you need to take care of them.

On the other hand, simply feeling unsure about the changing situation on the ground and wanting to cancel your trip as a result would not be covered — unless you have purchased Cancel For Any Reason coverage.

Tips for Maximizing CFAR Benefits

To maximize the benefits of Cancel For Any Reason (CFAR) coverage, travelers can take several strategic approaches. 

First and foremost, purchasing CFAR coverage as soon as possible after making the initial trip deposit is crucial, as there’s typically a limited window from the date of the first deposit to add CFAR to your policy. Understanding the specific percentage of refund your CFAR policy offers is also vital, as this knowledge can significantly impact budgeting and decision-making processes. 

Additionally, it’s important to familiarize yourself thoroughly with the terms and conditions of the CFAR policy, ensuring clarity on the cancellation process and avoiding surprises. Keeping detailed records of all trip expenses and communications regarding travel plans is advisable, as this organized documentation can streamline the claims process in the event of a cancellation. 

By adhering to these tips, travelers can effectively utilize their CFAR coverage, ensuring they receive the maximum possible benefit if they need to cancel their trip.

Alternatives to CFAR

For travelers who decide not to opt for Cancel For Any Reason coverage, there are alternative strategies and options to consider:

Comprehensive Travel Insurance

Traditional travel insurance policies cover a range of specific scenarios, such as illness, injury, or jury duty. Reviewing the covered reasons carefully can help you understand if your potential concerns are addressed.

Flexible Booking Options

Look for flexible booking options when planning your trip. Airlines, hotels, and tour companies often offer refundable options or minimal cancellation fees for an additional cost.

Credit Card Benefits

Some credit cards offer travel protection benefits. Check if your credit card provides any coverage for trip cancellations or interruptions, and understand the terms and limitations of this coverage. Be aware that your credit card coverage may be limited, and generally only covers arrangements paid for with that particular card.

Assess Specific Risks

Consider the specific risks associated with your trip. For instance, if you’re traveling during hurricane season or to a politically unstable region, weigh the pros and cons of different types of coverage.

Consult with a Travel Insurance Expert

If you’re unsure about what type of coverage is best for your situation, consulting with a travel insurance expert can clarify and help you make an informed decision.

What’s the Difference Between Trip Cancellation and Cancel For Any Reason coverage?

As mentioned above, Trip Cancellation coverage and Cancel For Any Reason coverage are distinct. Trip cancellation is coverage that can be added to your policy, while the latter is usually an optional add-on to an insured trip. As such, Cancel For Any Reason coverage usually has some more restrictions and conditions you have to meet before you’re eligible for a partial refund of your non-refundable trip costs.

If you’re worried about your trip not going forward due to poor weather, mechanical or equipment issues with your airline, or receiving a doctor’s order not to travel due to illness, then you may not need to purchase Cancel For Any Reason coverage.

That’s because those are all specific yet unforeseen reasons that would typically be considered covered reasons under a standard travel insurance policy’s trip cancellation coverage. Therefore, you’d be able to get a reimbursement for them regardless should your trip not go forward. In most covered circumstances like this, you’d get 100% of your non-refundable trip cost back.

There are also additional restrictions and eligibility requirements when it comes to Cancel For Any Reason coverage that do not necessarily apply to trip cancellation coverage. The most important restriction is the time-sensitive nature of purchasing this kind of coverage.

Cancel For Any Reason coverage must be purchased within a specified time frame after booking your trip. For example, after making your initial non-refundable trip deposit, you might have 15 days to purchase Cancel For Any Reason coverage, even if your intended departure date is many months away. You may also need to purchase a certain number of days prior to departure (in other words, no last-minute purchases).

In addition, restrictions apply when it comes to when you decide to cancel your trip. Most Cancel For Any Reason policies will not let you decide to cancel right up to the moment of departure, but rather, will require you do so a specified time prior. At a minimum, many policies require that you cancel the trip 48 hours prior to departure time.

How Much Extra is Cancel For Any Reason Travel Insurance?

You may be wondering at this point, so how much more does Cancel For Any Reason coverage cost? With a company like battleface, tacking on this type of coverage is likely to add at least 35% to your total policy price. The price increase could be more, however, and will depend on your base policy.

CFAR coverage may or may not be worth it to you, depending on your personal circumstances, your travel arrangements and the level of uncertainty around your trip, so it’s important to weigh the benefits of adding it to your trip insurance.

While it can seem like the various restrictions on Cancel For Any Reason coverage might not make it worth the extra investment, that’s not necessarily the case. What Cancel For Any Reason coverage really offers is maximum flexibility. If you’re a nervous traveler, have misgivings about an upcoming trip, or have a schedule that’s liable to change prior to departure, then it’s a good idea to consider adding this kind of coverage to your travel insurance policy.

Explore Travel Insurance Options with battleface!

FRAUD WARNING STATEMENT

FOR RESIDENTS OF ALL STATES OTHER THAN THOSE LISTED BELOW: Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison.

ALASKA: A person who knowingly and with intent to injure, defraud, or deceive an insurance company files a claim containing false, incomplete, or misleading information may be prosecuted under state law.

ARIZONA: For your protection Arizona law requires the following statement to appear on this form. Any person who knowingly presents a false or fraudulent claim for payment of a loss is subject to criminal and civil penalties.

CALIFORNIA: For your protection California law requires the following to appear on this form: Any person who knowingly presents false or fraudulent information to obtain or amend insurance coverage or to make a claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison. 

COLORADO:  It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado division of insurance within the department of regulatory agencies.

DELAWARE: Any person who knowingly, and with intent to injure, defraud or deceive any insurer, files a statement of claim containing any false, incomplete or misleading information is guilty of a felony.

FLORIDA:  Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony of the third degree.

IDAHO: Any person who knowingly, and with intent to defraud or deceive any insurance company, files a statement of claim containing any false, incomplete, or misleading information is guilty of a felony.

INDIANA: A person who knowingly and with intent to defraud an insurer files a statement of claim containing any false, incomplete, or misleading information commits a felony.

KANSAS: A “fraudulent insurance act” means an act committed by any person who, knowingly and with intent to defraud, presents, causes to be presented or prepares with knowledge or belief that it will be presented to or by an insurer, purported insurer, broker or any agent thereof, any written, electronic, electronic impulse, facsimile, magnetic, oral, or telephonic communication or statement as part of, or in support of, an application for the issuance of, or the rating of an insurance policy for personal or commercial insurance, or a claim for payment or other benefit pursuant to an insurance policy for commercial or personal insurance which such person knows to contain materially false information concerning any fact material thereto; or conceals, for the purpose of misleading, information concerning any fact material thereto.

KENTUCKY: 

Application: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime.

Claim Form: Any person who knowingly and with intent to defraud any insurance company or other person files a statement of claim containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime.

MAINE: It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties may include imprisonment, fines or a denial of insurance benefits.

MARYLAND:  Any person who knowingly or willfully presents a false or fraudulent claim for payment of a loss or benefit or who knowingly or willfully presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison.

MINNESOTA:  A person who files a claim with intent to defraud or helps commit a fraud against an insurer is guilty of a crime.

NEW HAMPSHIRE: Any person who, with a purpose to injure, defraud, or deceive any insurance company, files a statement of claim containing any false, incomplete, or misleading information is subject to prosecution and punishment for insurance fraud, as provided in RSA 638:20.

NEW JERSEY:

Application: Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties.

Claim Form: Any person who knowingly files a statement of claim containing any false or misleading information is subject to criminal and civil penalties.

PENNSYLVANIA: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties.

NEW MEXICO: ANY PERSON WHO KNOWINGLY PRESENTS A FALSE OR FRAUDULENT CLAIM FOR PAYMENT OF A LOSS OR BENEFIT OR KNOWINGLY PRESENTS FALSE INFORMATION IN AN APPLICATION FOR INSURANCE IS GUILTY OF A CRIME AND MAY BE SUBJECT TO CIVIL FINES AND CRIMINAL PENALTIES.

OHIO: Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud.

OKLAHOMA: Any person who knowingly, and with intent to injure, defraud or deceive any insurer, makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading information is guilty of a felony.

OREGON: IMPORTANT NOTE: Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance may be guilty of a crime and may be subject to fines and confinement in prison.

TENNESSEE: It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines and denial of insurance benefit.

TEXAS: Any person who knowingly presents a false or fraudulent claim for payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison. 

VIRGINIA: It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines and denial of insurance benefits. 

WASHINGTON: It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines and denial of insurance benefits.

NEW YORK*:  Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the stated value of the claim for each such violation.

PRE-EXISTING MEDICAL CONDITION

Pre-Existing Medical Condition means an illness, disease, or other condition during the 180 day period immediately prior to the date Your coverage is effective :
  1. received or received a recommendation for a test, examination, or medical treatment for a condition which first manifested itself, worsened or became acute, or had symptoms which would have prompted a reasonable person to seek diagnosis, care or treatment; or
  2. took or received a prescription for drugs or medicine. Item (2) of this definition does not apply to a condition which is treated or controlled solely through the taking of prescription drugs or medicine and remains treated or controlled without any adjustment or change in the required prescription throughout the 180 day period before coverage is effective under this policy.
  3. required a change in prescribed medication. Change in prescribed medication means the dosage or frequency of a medication has been reduced, increased, stopped and/or new medications have been prescribed due to the worsening of an underlying condition that is being treated with the medication, unless the change is:
    1. between a brand name and a generic medication with comparable dosage; or
    2. an adjustment to insulin or anti-coagulant dosage.
If you, or someone you are traveling with, has a Pre-Existing Medical Condition, you can still buy a policy from us but there is no cover for any claim arising directly or indirectly from that condition.

PRE-EXISTING MEDICAL CONDITION

Any Medical Condition that, within the last 12 months, required any:

  • surgery, inpatient or outpatient treatment, referrals or investigations of any sort. This includes being on any waiting list, taking any prescription medication, tablets or required medical treatment (This will not apply to common colds, flu or contraceptive medication);
  • medical advice or treatment for any respiratory condition relating to the lungs or breathing;
  • medical advice or treatment for any heart, stroke or diabetic condition;

Hypertension or high cholesterol controlled by 1 prescription drug only and where the dosage has not been changed within the last 12 months will not be considered a pre-existing medical condition

Coverages Available:

*not all coverages are available in all states
Travel Protection Benefits Limits
Trip Cancellation 100% of trip cost (up to a maximum of $20,000)
Single Occupancy Up to trip cost
Cancel for Any Reason Up to 75% of trip cost Up to 50% of trip costs in FL(CFAR not available to NY residents)
Trip Interruption 150% of trip cost
Delay Package
Trip Delay
Maximum $200 per day up to $2,500
Missed Connection Maximum of $1,000 per covered trip
Baggage Package – Excess
Baggage and Personal Effects $2,500 $100 Deductible
Baggage Delay $100 per day up to a maximum of $500
Travel Medical Package – Excess AK, CO, ID, ND, NH – Primary
Travel Medical Expense – Adventure sports included $100,000 $50,000 in NH $50 Deductible
Emergency Dental $750
Emergency Evacuation and Repatriation of Remains Up to $500,000
Up to $1,000,000 in NH
Accidental Death & Dismemberment $100,000 or $250,000 or $500,000
Pet Medical Package
Pet Medical Expense Up to $2,000 $100 Deductible
Pet Return Up to $500
Rental Vehicle Damage – Primary Up to $35,000 per rented vehicle- Primary $250 Deductible for loss greater than $2,000
Vacation Rental Damage $1,500 or $3,000 or $5,000

Travel Medical Insurance

Some benefits are subject to an excess (aka, the deductible, or what you have to pay before we pay), as stated in the Policy Schedule, and are per Policy Period.

Benefits Limits
Cancellation and Curtailment 5,000
Emergency Medical Expenses, Evacuation and Repatriation of Mortal Remains 10,000,000 (excess 250 or 50)
Hospital Benefit 25 per day, maximum 100
Personal Accident up to 250,000
Baggage Loss or Delay up to 5,000 (excess 250 or 50)
Personal Money and Passport, limited to 250 in respect of cash 500 (excess 250 or 50)
Personal Liability 500,000
Travel Delay 500
Optional Benefits Limits
Business Extension up to 1,000 (excess 100)
Winter Sports (Ski Equipment) up to 750 (excess 50 or 100)

Travel Medical Insurance

Some benefits are subject to an excess (aka, the deductible, or what you have to pay before we pay), as stated in the Policy Schedule, and are per Policy Period.

Benefits Limits
Trip Interruption 2,000
Medical and Emergency Expenses 10,000,000 (excess 250)
Hospital Benefit 25 per day, maximum 100
Personal Accident 50,000 as standard, optional increase up to 250,000
Baggage Loss or Delay 2,000 as standard, optional increase up to 10,000
Personal Money and Passport 500 (excess 250) *** Limited to 250 in respect of cash
Personal Liability 500,000
Optional Benefits Limits
Business Extension up to 1,000 (excess 100)
Winter Sports (Ski Equipment) up to 750 (excess 50 per person, 100 per family)

Travel Medical Insurance

Some benefits are subject to an excess (aka, the deductible, or what you have to pay before we pay), as stated in the Policy Schedule, and are per Policy Period.

Benefits Limits
Cancellation up to $20,000
Trip Interruption $1,000
Medical and Emergency Expenses $5,000,000 (deductible $250)
Hospital Benefit $25 per day, maximum $100
Personal Accident up to $50,000
Baggage $2,000 (deductible $250)
Personal Money and Passport, limited to $250 in respect of cash $500 (deductible $250)
Personal Liability $500,000
Optional Benefits Limits
Business Extension up to $1,000 (deductible $100)
Winter Sports (Ski Equipment) up to $750 (deductible $50 or $100)

Travel Medical Insurance

Some benefits are subject to an excess (aka, the deductible, or what you have to pay before we pay), as stated in the Policy Schedule, and are per Policy Period.

Benefits Limits
Cancellation and Curtailment 5,000
Emergency Medical Expenses, Evacuation and Repatriation of Mortal Remains 10,000,000 (excess 250 or 50)
Hospital Benefit 25 per day, maximum 100
Personal Accident up to 250,000
Baggage Loss or Delay up to 5,000 (excess 250 or 50)
Personal Money and Passport, limited to 250 in respect of cash 500 (excess 250 or 50)
Personal Liability 500,000
Travel Delay 500
Optional Benefits Limits
Business Extension up to 1,000 (excess 100)
Winter Sports (Ski Equipment) up to 750 (excess 50 or 100)