There are numerous reasons to purchase travel insurance before an important trip, but the biggest one is protecting your investment against life’s “what ifs.” A policy from a top-rated travel insurance company can protect you financially if your trip is canceled or interrupted for a covered reason, or if your baggage is delayed or lost by your airline carrier. Other travel insurance protections, such as medical and dental emergency coverage, can even help you get needed care if you are hurt or injured far away from home.
There are plenty of other coverages that come with most travel insurance policies as well, including some you can tack on to your policy for an additional cost. One such add-on is called “cancel for any reason” coverage, or CFAR. “A lot more people are buying it,” says Stan Sandberg, co-founder of TravelInsurance.com. “It gives you the most flexibility, but it’s important to remember the coverage for CFAR reimbursement (in most plans) is 75% of trip costs, not 100% … but it literally allows you to cancel for any reason whatsoever.”
As Sandberg notes, with a cancel for any reason policy, you can cancel your trip for any reason at all and still get a percentage of your prepaid travel expenses back (typically around 50% to 80% of what you’ve already paid; percentages vary by provider).
Angela Borden, product strategist with Seven Corners, says her company has seen a profound increase in travelers purchasing the cancel for any reason benefit as people have learned a bit more about how it works. “Another thing consumers don’t always understand: If you buy travel insurance, there are covered reasons for cancellation or interruption. If your situation doesn’t fit those covered reasons, there’s no coverage,” she says, highlighting another reason it’s wise to consider adding optional cancel for any reason coverage.
That said, not all companies offer this coverage, and the terms and conditions of CFAR protection vary widely across travel insurance providers. Read on to learn about the best travel insurance companies that offer CFAR coverage and the main policy details you should know about, as well as answers to common questions around cancel for any reason travel insurance.
The Best Options for Cancel for Any Reason Travel Insurance Coverage
|CFAR REIMBURSEMENT LEVEL||CFAR PURCHASE DEADLINE||RECOMMENDED PLAN TYPE||FINANCIAL STRENGTH RATING WITH A.M. BEST|
|Allianz Travel Insurance||Up to 80%||Within 14 days of initial deposit||OneTrip Prime and OneTrip Premier||A+|
|Travelex Insurance Services||Up to 50%||Within 15 days of initial deposit||Travel Select||A++|
|Seven Corners||Up to 75%||Within 20 days of initial deposit||RoundTrip Travel Protection||A|
|IMG Travel Insurance||Up to 75%||Within 20 days of initial deposit||iTravelInsured Travel LX||A-|
|AXA Assistance USA||Up to 75%||Within 14 days of initial deposit||Platinum Plan||A+|
|Squaremouth||Varies by plan||Varies by plan||Multiple plan types||Varies by company|
Allianz Travel Insurance
Reimburses up to 80% of prepaid travel arrangements
Allows you to cancel trip as late as day of departure
“Cancel Anytime” coverage not available with every plan or in every state
Allianz Travel Insurance offers a range of highly rated travel insurance plans, some of which let you get back up to 80% of the full cost of prepaid travel arrangements if you need to. Some of the company’s most popular plans include OneTrip Prime and OneTrip Premier. While the OneTrip Premier plan from Allianz offers higher coverage limits overall, each travel insurance policy comes with trip cancellation insurance, coverage for trip interruptions, travel delay protection, insurance for lost or delayed baggage, emergency medical coverage, and protection for emergency medical evacuation. Kids 17 and younger are also covered for free when listed on the policy and traveling with a parent or grandparent.
Allianz offers a “Cancel Anytime” add-on for both plans, in which case you can get up to 80% of prepaid, nonrefundable travel costs back for a covered trip. This optional coverage must be purchased within 14 days of paying an initial trip deposit, and it can only be purchased for travel plans that are more than 30 days away. From there, you can cancel your trip and apply for reimbursement up until the day of departure (provided you haven’t left yet).
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Travelex Insurance Services
Can cancel trip up to 48 hours before departure
Most travel plans include coverage for COVID-19 issues
Only reimburses up to 50% of your prepaid travel expenses
CFAR coverage is only available with select plans
Travelex is another highly rated travel insurance company that lets you add CFAR coverage to the Travel Select plan for an additional cost. This travel insurance policy comes with up to $50,000 in coverage for emergency medical expenses, and children ages 17 and younger are automatically covered when listed on the application for a travel insurance plan. Other benefits afforded in this plan include coverage for trip cancellations, interruptions and delays; specialized protection for missed connections; baggage insurance; and more.
In terms of the CFAR coverage offered through Travelex, consumers are required to purchase this protection within 15 days of the initial trip deposit. From there, you have the right to cancel your trip for any reason at all up to 48 hours before departure. If you do cancel, you’ll get back up to 50% of your insured, nonrefundable travel expenses (think: airfare costs, hotel stays, etc.) after filing a claim.
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Offers up to 75% reimbursement for prepaid travel costs
CFAR coverage can be purchased up to 20 days after initial trip payment
CFAR coverage not available with all plans
Seven Corners is another top travel insurance company to consider if you’re planning a trip and you want the opportunity to cancel for any reason. This company offers CFAR coverage as an add-on for its RoundTrip Travel Protection plans, which include nearly all types of travel insurance coverage you would expect. For example, RoundTrip Travel Protection comes with COVID-19 travel protections, trip cancellation and interruption insurance, coverage for travel delays, and various kinds of baggage insurance. Customers also get between $100,000 and $500,000 in protection for emergency medical care — as well as $250,000 to $1 million in coverage for medical evacuation and repatriation of remains, which can prove crucial for international trips.
When it comes to CFAR coverage from Seven Corners, you have a full 20 days to buy this protection after making your initial trip deposit. Consumers can also get back up to 75% of prepaid travel expenses with this protection, although you do have to cancel your trip no later than two days before your scheduled departure date.
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IMG Travel Insurance
Get back up to 75% of the full cost of nonrefundable travel expenses
CFAR coverage can be purchased within up to 20 days of the initial trip deposit
CFAR coverage does not apply if the travel supplier goes out of business or refuses to provide services
IMG offers CFAR coverage as an add-on with its iTravelInsured Travel LX plan. This robust travel insurance plan includes trip cancellation and interruption coverage, trip delay insurance, up to $1 million in coverage for emergency medical evacuation and repatriation of remains, and more.
Customers can add on CFAR coverage as an optional benefit, which can lead to reimbursement of up to 75% for prepaid, insured travel expenses. However, this coverage must be purchased within 20 days of the initial trip deposit, and the trip must be canceled at least two days before the departure date.
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AXA Assistance USA
Get up to 75% of prepaid travel expenses back when you cancel for any reason
10-day money back guarantee if dissatisfied (prior to your trip)
CFAR coverage not available with every plan
Must purchase CFAR coverage within 14 days of initial trip deposit
AXA Assistance USA offers cancel for any reason coverage within the AXA Platinum plan. This plan automatically comes with benefits like trip cancellation and interruption coverage, protection for travel delays and missed connections, emergency medical coverage, and protection for emergency medical and nonmedical evacuations. Insurance for baggage and personal effects is also included.
Consumers can add on optional rental car coverage to this plan, in addition to CFAR coverage, which must be purchased within 14 days of the initial trip deposit. This protection can provide reimbursement for up to 75% of prepaid travel expenses if a trip needs to be canceled for a reason not covered within the trip cancellation and interruption benefit of this plan.
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Compare multiple plans with CFAR coverage in one place
Comparison tool makes it easy to price shop
CFAR coverage reimbursements and fine print vary by company
Squaremouth is a comparison site that lets you see how travel insurance plans from multiple providers stack up. This feature means you get the chance to compare policies and CFAR coverage requirements among several different travel insurance companies at once, which allows you to shop around for the best deal.
While using a comparison tool can be convenient, the main downside is that you’ll have to read through several policies and compare individual CFAR coverage options across all the plans you’re considering. When you do so, you should make sure you know the level of reimbursement you’ll receive if you have to cancel your trip. Also note how many days you have to purchase this coverage after your initial trip deposit, and how much time you have to cancel your travel arrangements before your departure date.
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Why Trust U.S. News Travel
Holly Johnson is an award-winning content creator who has been writing about travel insurance and travel for more than a decade. She has researched travel insurance options for her own vacations and family trips to more than 50 countries around the world, and she has experience navigating the claims and reimbursement process. In fact, she has successfully filed several travel insurance claims for trip delays and trip cancellations over the years. Johnson also works alongside her husband, Greg — who has been licensed to sell travel insurance in 50 states — in their family media business.
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The 6 Best Cancel for Any Reason Travel Insurance Options for 2023 originally appeared on usnews.com
Update 01/27/23: This article was published at an earlier date and has been updated with new information.