Cancel for Any Reason (CFAR)
Plain English
Cancel for any reason coverage lets you cancel a trip for almost any reason, even just changing your mind, and get part of your money back. It's an add-on to trip cancellation insurance, costs more, and typically refunds only a percentage of your costs. You usually have to buy it soon after booking.
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On this page
Definition
Cancel for any reason (CFAR) is an optional add-on to trip cancellation coverage that lets a traveler cancel for a reason not listed in the policy and recover a percentage of prepaid, nonrefundable costs. It costs more than standard coverage, usually must be bought within a set time after booking, requires insuring all prepaid costs, and requires canceling before a deadline.
Why It Matters
It's the flexible option when the risk you're worried about isn't on a standard policy's list. But it's not a full refund, so compare the payback with the price.
Real-World Example
Imagine a traveler prepays $3,000 and adds CFAR that reimburses a percentage of costs if they cancel before its deadline. They cancel for a reason their standard policy wouldn't cover and get back that share, not the whole $3,000.
Common Misconceptions
- CFAR refunds everything. It typically reimburses a percentage.
- You can add it any time. It usually must be bought soon after booking.
- It's the same as a cruise line's waiver. A waiver isn't insurance.
Key Takeaways
- D.C.: CFAR is more expensive and typically reimburses only a percentage of travel costs.
- There's usually a time frame for cancellations.
- You must generally insure all prepaid, nonrefundable expenses.
- It's an add-on to trip cancellation coverage.
Frequently Asked Questions
What is cancel for any reason travel insurance?
An add-on that lets you cancel for reasons a standard policy doesn't list and recover a percentage of your costs.
How much does CFAR pay back?
Typically a percentage of prepaid, nonrefundable costs, set in the policy.
Is CFAR worth it?
It can be if your main worry isn't a covered reason. Compare its price with what it would pay back.
Related Terms
Related Coverages
- Travel Insurance
Related Scenarios
Explore the rest of the Travel Insurance category.
Browse Travel Insurance terms →Sources
The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- disb.dc.govTaking a Trip? Information About Travel Insurance You Should Know Before You Hit the Road · District of Columbia Department of Insurance, Securities and Banking
- iid.iowa.govJune Consumer Connection: What is Travel Insurance? · Iowa Insurance Division
Educational information, not advice: This page is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers.