Trip Cancellation vs. Cancel for Any Reason Coverage (2024)

Last updated on 04/16/2024

At InsureMyTrip, we know the importance of expecting the unexpected when it comes to travel insurance. Lucky for you, and all of our travelers, there are two different benefits that will cover a cancelled trip: trip cancellation and Cancel for Any Reason

Trip Cancellation

You will find basic trip cancellation coverage in every comprehensive policy. This will extend coverage for the cancellation of a trip for specific unforeseen, covered reasons.

Commonly, travel insurance plans, including cruise insurance plans, will cover reasons such as:

  • The unexpected death, illness, or injury of you and/or a traveling companion that deems you unfit to travel, by order of a licensed physician
  • The hospitalization or death of a non-traveling family member
  • Weather or common carrier related issues (varies by policy)
  • Unforeseen natural disasters at home or the destination
  • A legal obligation, such as being called for jury duty or to appear as a witness in court

The details vary from provider to provider and with each plan. If you do need to cancel, you will be reimbursed 100% of the prepaid, non-refundable trip cost for which you are insured and can provide documentation. All of this coverage, is only if the trip is cancelled due to a specific, unforeseen covered reason.

Cancel for Any Reason

Cancel for Any Reason (CFAR) is an optional travel insurance benefit available on some of the plans available with InsureMyTrip. Usually, this benefit is an additional charge on the plan, but it comes with extended coverage that you may find worthwhile.

Unlike basic trip cancellation coverage, the CFAR benefit has a few eligibility criteria:

  • Depending on the policy, only available within 10-21 days of initial trip payment
  • You MUST insure 100% of your pre-paid, non-refundable trip cost
  • Cancellation with the travel supplier must occur 48 or 72 hours before departure date, depending on the plan
  • Benefits may only cover between 50%-75% depending on the policy.

With CFAR, it doesn't matter why you have to cancel your trip – you just can. Often times, travelers will purchase CFAR coverage when traveling to a part of the world with civil or political unrest. This allows the traveler to cancel if uncomfortable with leaving for the trip - second thoughts, fear of safety or a bad omen appeared. Regardless the reason if you are outside 48 hours before your trip, you can cancel.

Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.

Trip Cancellation vs. Cancel for Any Reason Coverage (2024)


Trip Cancellation vs. Cancel for Any Reason Coverage? ›

In essence, CFAR is about preference and whether or not you'll change your mind about going on a trip. Standard trip cancellation coverage is about unforeseen events that prevent you going on a trip you definitely want to go on.

Is trip cancellation insurance the same as cancel for any reason? ›

Unlike trip cancellation coverage, the optional travel insurance cancel for any reason benefit (CFAR) offers partial reimbursem*nt on prepaid, nonrefundable costs if you cancel for any reason, even those not typically covered by your comprehensive travel insurance policy.

Is cancel for any reason coverage worth it? ›

Most basic travel insurance policies only cover cancellations under certain circ*mstances. Cancel For Any Reason add-ons let you do just that, but they can be pricey. It might make sense if you have uncertain plans and can't book refundable tickets or fares.

What is a covered reason for trip cancellation? ›

Covered Reasons for Trip Cancellation
Covered Reasons for Trip Cancellation
Inclement Weather
Home or Destination Uninhabitable
Divorce or Legal Separation
NOAA Hurricane Warning at Destination
30 more rows

What does up to 100% reimbursem*nt for covered trip cancellation and interruption mean? ›

The details vary from provider to provider and with each plan. If you do need to cancel, you will be reimbursed 100% of the prepaid, non-refundable trip cost for which you are insured and can provide documentation. All of this coverage, is only if the trip is cancelled due to a specific, unforeseen covered reason.

Does trip insurance cover if I cancel my trip? ›

What Is Trip Cancellation Insurance? If you're unable to take a trip due to an unforeseeable event, a trip cancellation policy will reimburse you for your prepaid, forfeited and non-refundable costs. Depending on the travel insurance plan, your policy will help cover costs up to the time and date of your departure.

Does travel insurance cover if you decide to cancel? ›

Can I cancel my flight with travel insurance? In many cases, yes, you can cancel your flight and be reimbursed if you have an eligible reason for canceling. You may not cancel the flight because you've changed your mind. You must have a valid reason that is detailed in your travel insurance policy.

What is a good cancellation policy? ›

Key elements of an effective cancellation policy template

It's common to require a 24-hour or 48-hour notice before canceling an appointment or scheduled service, but this can vary based on your business model. Decide on the cancellation fees: Clearly state what kind of cancellation fees you will charge.

What does cancel for any reason mean? ›

“Cancel for any reason” travel insurance allows you to cancel your trip for any reason up to two days prior to your scheduled departure. Depending on your plan, you'll be reimbursed up to 50% or 75% of the insured prepaid, nonrefundable trip cost.

What is the best travel insurance company? ›

The Best International Travel Insurance Providers in Detail
  • Faye. Our Top Pick. ...
  • Travelex. Our pick for families. ...
  • Nationwide Travel Insurance. Our pick for most coverage reimbursed. ...
  • Tin Leg. Our pick for customizable coverage. ...
  • Berkshire Hathaway Travel Protection. ...
  • Seven Corners Travel Insurance. ...
  • AIG Travel Guard.

What does travel insurance not cover? ›

Most travel insurance policies won't pay out if you're negligent while under the influence of alcohol or drugs, and have an accident or have property stolen.

When to buy trip interruption insurance? ›

If you plan to travel outside Canada—even for a day in the United States—you should buy trip interruption and travel health insurance before you leave.

Does canceling insurance affect anything? ›

Even if you aren't driving, you may risk fines or a license suspension if you own a registered vehicle but don't have insurance. Canceling your insurance will also lead to a lapse in car insurance coverage, which may mean higher rates in the future.

Is it bad to cancel insurance early? ›

If you cancel your insurance policy before your policy expiry / renewal date, your insurance company will typically charge a percentage of your total insurance premium for the year that is higher than the per day amount would be. This is called a short rate cancellation penalty.

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