Cancel for Any Reason (CFAR): Is It Worth the Extra Cost?

Standard trip cancellation insurance covers you when you cancel for a covered reason, such as illness, injury, your principal residence being made uninhabitable, or job loss. This guide explains how Cancel for Any Reason (CFAR) coverage works, the timelines required to qualify, and when the reimbursement makes financial sense for your trip.

What does Cancel for Any Reason travel insurance cover?

Cancel for Any Reason (CFAR) reimburses up to 50% of your eligible prepaid, non-refundable trip costs when you cancel for reasons not covered by a standard policy. It is an optional add-on that lets you cancel your trip for literally any reason, including a bad weather forecast, changing your mind, political unrest that does not trigger a formal advisory, or simply cold feet.

What are the rules for Cancel for Any Reason insurance?

To use CFAR coverage, you must purchase the add-on within 5 days of your initial payment (or before any cancellation penalties apply) and cancel more than 5 days prior to departure. The complete rules include:

• You must purchase CFAR within 5 days of making your first trip payment
• You must cancel more than 5 days before your scheduled departure
• Reimbursement is up to 50% of your eligible prepaid, non-refundable costs or the sum insured, whichever is less
• Available as an add-on to Trip Cancellation & Trip Interruption Insurance

When is Cancel for Any Reason travel insurance worth it?

CFAR makes sense for high-value travel or unpredictable itineraries where losing non-refundable deposits would create a substantial financial loss. We find it is particularly practical in situations such as:

• Expensive trips: If you’ve prepaid $10,000+ in flights and hotels, getting $5,000 back beats getting $0
• Uncertain destinations: Regions with evolving political situations or weather patterns
• Group travel: When one person’s change of plans affects the whole group’s bookings
• Wedding/event travel: When cancellation depends on factors outside your control

When is Cancel for Any Reason not worth buying?

CFAR is usually not worthwhile for short, inexpensive trips where your total prepaid costs are low. In those circumstances, the CFAR premium may not justify the up to 50% reimbursement, and standard trip cancellation (which covers 100% for covered reasons) may be sufficient.

CFAR costs approximately $1.75/day. Add it to your quote →

Questions travellers ask

What does Cancel for Any Reason (CFAR) insurance cover?

Cancel for Any Reason (CFAR) is an optional add-on that reimburses up to 50% of your eligible prepaid, non-refundable trip costs if you cancel for any reason not covered by standard insurance. This includes changing your mind, poor weather forecasts, cold feet, or political unrest without an official advisory.

What are the timing rules to qualify for CFAR?

You must purchase CFAR within 5 days of making your first trip payment. If you decide to cancel your trip, you must do so more than 5 days before your scheduled departure date to receive up to 50% reimbursement of eligible, non-refundable costs.

How much does Cancel for Any Reason insurance cost?

CFAR coverage costs approximately $1.75 per day as an optional add-on to Trip Cancellation and Trip Interruption Insurance. For expensive bookings, getting half your investment back can prevent a total financial loss if your travel plans change.

How does CFAR differ from standard trip cancellation?

Standard trip cancellation covers 100% of eligible costs, but only for specific covered reasons like illness, injury, job loss, or your principal residence being made uninhabitable. In contrast, CFAR allows you to cancel for any reason other than a covered risk, but reimburses up to 50% of your eligible prepaid, non-refundable expenses or the sum insured, whichever is less.