Cancel for any reason (CFAR) travel insurance explained
This upgrade comes closest to genuine flexibility, but it has more conditions than its name suggests. It rarely refunds everything, and the deadlines to buy it can be very short.
By the StarHolidays Editorial Team Updated 4 min read
Key takeaways
- It lets you cancel for reasons a standard policy rejects, and usually refunds about 50% to 75% of your insured cost.
- Purchase windows range from 24 hours to 21 days after your first deposit.
- You usually need to insure your full prepaid cost and cancel at least 2 or 3 days before departure.
- It is often quoted as adding about 40% to the premium, and it isn't available everywhere.
On this page
How it works
A standard trip cancellation benefit needs a covered reason. Cancel for any reason, or CFAR, removes that test. You can decide not to travel because you're worried, because your plans changed or for any other reason, and recover a stated percentage of your costs.
It's mostly a US-market product. In other countries, you may find similar options under different names, or find they aren't sold at all, so check locally.
The conditions that decide whether it works
Terms differ by plan, and published examples show just how much:
| Condition | Published range | Why it matters |
|---|---|---|
| Reimbursement | Commonly up to 75%, with some plans at 50% or up to 80% | You'll bear the remainder yourself |
| Purchase window | From 24 hours to 21 days after your first deposit | Miss it and the option's gone |
| Insuring the full cost | Often required | Under-insuring may void the benefit |
| Last time to cancel | Often 2 to 3 days before departure | It doesn't work for same-day decisions |
| Availability | Not sold to residents of every US state | New York is a commonly cited exception on some plans |
Don't rely on this table for your own policy. Check the plan's own description of coverage.
A worked example
You've prepaid $6,000 for a European trip and pay for a plan with CFAR at 75%. A month before you leave, you decide not to go because of events in the news. A standard policy might pay nothing, as worrying isn't usually a covered reason.
- Your prepaid, non-refundable costs: $6,000
- CFAR at 75%: $4,500 back
- You lose: $1,500, plus the policy premium
On a $6,000 trip, a comprehensive policy at 6% costs about $360. If CFAR adds roughly 40%, that's about $504, or $144 extra. Those are illustrative figures rather than a quote, but they show the kind of decision you're making.
Is it worth it?
It might be worth it if:
- You've got a large prepaid amount, with strict cancellation terms
- There's a known concern that a standard policy wouldn't cover, such as an unstable work situation or a nervous relative
- You'd rather pay extra for peace of mind
It may not be worth it if:
- Your bookings are largely refundable or changeable
- Your main concern is already a covered reason
- The cost is high relative to what you'd recover
Don't overlook the alternative. Refundable fares, free-cancellation hotels and flexible tour bookings might give you more for less, and you get 100% back instead of 75%.
Common mistakes
- Missing the purchase window. Check it the day you pay your first deposit, particularly if the window's short.
- Adding bookings without updating your cover. If you need to insure 100% of your costs, additions might matter.
- Leaving it until the last minute. A decision the day before you fly generally comes too late.
- Thinking "any reason" means "any amount". It's always a percentage, and you'll usually get less than you paid.
- Assuming cover continues mid-trip. "Interrupt for any reason" is a separate benefit, and only some plans offer it.
How CFAR compares with other flexible options
CFAR is only one way to protect yourself against a change of plans. It's worth comparing before you pay for it.
| Option | What you get back | Best when |
|---|---|---|
| Fully refundable fares and hotels | Often 100%, subject to terms | The refundable price isn't much higher |
| Free-cancellation hotel rates | 100% until the deadline | You want flexibility until close to the trip |
| Airline credit | Value kept as a voucher | You'll definitely travel again soon |
| Tour operator's flexible booking | Depends on the operator | The package is your biggest cost |
| Standard cancellation cover | Up to your limit, for covered reasons only | Your main worries are illness or injury |
| CFAR upgrade | Commonly 50% to 75%, for any reason | Large non-refundable costs, and reasons a policy won't list |
Some travelers mix these. They might book a refundable hotel and a non-refundable tour, for example, then insure only the tour. Since CFAR terms may require you to insure all your prepaid costs, check how this works before you buy.
How to claim
Cancel the trip within the deadline, keep your written cancellation confirmations and collect any refunds. You won't need to explain your reason, but you'll still need to prove your costs and what your suppliers will not refund. See how to file a claim.
Frequently asked questions
Does cancel for any reason refund 100%?
Generally not. Common plans reimburse up to 50% to 75% of the insured cost. If you need a full refund, book refundable fares and hotels instead.
How soon must I buy CFAR?
It depends on the plan. Published windows range from within 24 hours to within 21 days of your first deposit. Check this before you commit to any policy.
Can I add CFAR to a policy later?
Usually only within the plan's purchase window, and sometimes only when you first buy the policy. Check with your insurer.
Can I use CFAR the day before my trip?
Often not. Many plans require you to cancel at least 2 or 3 days before your scheduled departure.