Cancel For Any Reason Travel Insurance: How it Works & Best CFAR Options

Cancel for any reason, or CFAR,  is an optional coverage addition to your travel insurance that gives you flexibility to cancel your trip for any reason and get a 50% to 80% reimbursement of your non-refundable travel expenses. 

Unlike standard travel insurance that covers only specific circumstances like illness or severe weather but coverage 100% of your non-refundable trip costs, CFAR allows you to cancel for reason outside of the standard reasons.

Optional cancel for any reason coverage is available on mid-tier and premium travel insurance policies.  CFAR coverage costs between 40-60% of your base travel insurance plan cost or about 3% of your trip cost.  CFAR policies share common requirements:

• Purchase timing: Must buy within seven to 21 days of first trip deposit
• Full trip coverage: Must insure 100% of prepaid, non-refundable costs
• Group cancellation: All travelers must cancel together
• Advance notice: Must cancel at least 48 to 72 hours before departure
• Medical eligibility: Must be medically fit to travel when purchasing

When you use your CFAR option, you will cancel your trip and your non-refundable travel expenses will be paid at a set reimbursement amount. Standard travel insurance covers cancellations for specific reasons like illness, death in the family, natural disasters, and airline issues.  CFAR covers literally every other cancellation reason like anxiety, work conflicts, or just changing your mind.

MoneyGeek researched the best cancel for any reason policies from 13 major travel insurers to to determine which companies had the best reimbursements percentage, lowest cost, and most flexible terms and conditions.  Here are the best CFAR plans:

Allianz has the best CFAR option with their innovative "Cancel Anytime" coverage, that has the best terms compared to other CFAR policies. Available exclusively on OneTrip Prime and OneTrip Premier travel insurance plans, this upgrade reimburses for 80% (the highest rate in the industry) of prepaid, non-refundable costs.

Key CFAR Features:

• Reimbursement Rate: 80% (vs. industry standard 75%)
• Purchase Window: Within 14 days of first trip payment
• Cancellation Notice: Up to departure day (vs. industry standard 48 hours)
• Maximum Benefit: $16,000 per traveler
• Plans Offering Coverage: OneTrip Prime, OneTrip Premier

The Cancel Anytime upgrade requires insuring 100% of trip costs and cannot be purchased online, so you will need to call.  While this adds a step to the buying process, the 80% reimbursement rate and same-day cancellation flexibility makes it the best CFAR add-on.

IMglobal has CFAR as an add-on across three iTravelInsured plans with 75% reimbursement and maximum coverage benefit of $112,500.  The company bundles CFAR with Interruption for Any Reason (IFAR) coverage, adding value for comprehensive trip protection.

Key Features:

• Reimbursement Rate: 75% of non-refundable trip costs
• Purchase Window: 20-21 days after initial deposit (varies by plan)
• Cancellation Notice: At least 48 hours before departure
• Maximum Benefit: Up to $112,500 (on SE and LX plans)
• Plans Offering Coverage: Choice, Travel SE, Travel LX

IMglobal does offer CFAR  to residents inNew York, Missouri, and Washington. The Choice plan caps trip coverage at $10,000 (yielding $7,500 maximum CFAR benefit), while SE and LX plans extend to $150,000 trip coverage ($112,500 maximum CFAR benefit at 75% reimbursement), making IMglobal the best CFAR for high-value trips.

Tin Leg cancel for any reason plans have solid value and the most plan options with varying reimbursement rates, giving travelers flexibility to match coverage with their budget. No other company provides as many CFAR-eligible plan options.

Key Features:

• Reimbursement Rate: 50-75% depending on plan selection
• Purchase Window: Within 14 days of initial deposit
• Cancellation Notice: At least 48 hours before departure
• Maximum Benefit: Based on total insured trip costs (no specific cap)
• Plans Offering Coverage: Gold (75%), Silver (50%), Luxury (75%), Adventure (75%)

Tin Leg doesn't have geographic restrictions for CFAR coverage. The variety of plans makes it suitable for different traveler budgets and risk tolerance levels, from budget-conscious travelers seeking basic protection to those wanting comprehensive coverage.

CFAR  increases your travel insurance cost by 40% to 70%. Based on our analysis of 13 major travel insurers, CFAR costs an average of $79 for a $2,500 trip, $191 for a $5,000 trip and $302 for a $10,000 trip. These costs are roughly 3% of your trip value across different amounts, making CFAR a good buy for expensive vacations where even partial recovery provides significant financial protection.

The lowest rates don't necessarily mean the best CFAR coverage. Every company's CFAR terms and conditions are different, affecting reimbursement percentages, purchase windows, cancellation notice requirements and geographic restrictions. Rates vary widely and some companies cost over three times more than others.  The three cheapest CFAR providers are BHTP ($44), Travel Guard ($46), and Seven Corners ($47) for $2,500 coverage, but you should see above for each companies terms and conditions to make sure you are getting a policy that meets your needs.

CFAR makes financial sense if there's more than a 4% to 5% chance you'll need to cancel your trip. 

When is CFAR coverage best?

• High-risk travelers: Business professionals with demanding schedules, people with elderly or declining family members, and travelers to politically unstable regions benefit most from the flexibility. First-time international travelers and those booking far in advance also have higher uncertainty.
• Expensive trips: Luxury vacations, once-in-a-lifetime experiences, and multi-generational family trips with high total costs make paying the CFAR cost a better option than losing your trip cost.
• Uncertain circumstances: Consider CFAR when personal situations may change include pregnancy during travel dates, job instability, health conditions that might worsen, or family situations requiring your presence for caregiving responsibilities.

When should you skip CFAR?

• Low-risk situations where cancellation probability is under 4% don't justify CFAR's cost. Short trips close to home, and travel with refundable cancellation terms rarely need the extra protection. Healthy travelers with stable personal and work situations have lower cancellation risk.

Beyond financial protection, CFAR provides peace of mind that can enhance your travel experience. CFAR reduces "commitment anxiety" by providing an exit strategy. Knowing you can recover most of your costs if circumstances change allows you to book trips with confidence and helps: 

• Nervous flyers who worry about getting to the airport
• Business travelers facing unpredictable work demands
• Family caregivers concerned about leaving dependents
• Health-conscious travelers during flu seasons or pandemics
• First-time international travelers feeling overwhelmed

The mental relief often justifies CFAR's cost even if you never use it.

If CFAR doesn't fit your budget, consider these alternatives:

• Flexible booking options: Many airlines and hotels, especially for direct bookings, have refundable cancellations policies.
• Premium travel credit cards: These cards have trip cancellation coverage for specific reasons. Check your card's benefits before purchasing additional coverage, as you may already have some protection.
• Standard travel insurance covers many cancellation reasons:  Review covered reasons in your travel insurance plan to see if standard coverage meets your needs without the extra CFAR expense.

We evaluated 13 major travel insurance companies that offer Cancel for Any Reason coverage using a comprehensive scoring system based on five key criteria that matter most to travelers:

Weighted CFAR Scoring Criteria:

• Reimbursement Rate (50% weight): How much you get back when you cancel (50-80% range)
• Cost Competitiveness (20% weight): Affordability compared to other CFAR options
• Purchase Window Flexibility (10% weight): How long you have to add CFAR after booking (7-21 days)
• Cancellation Notice Requirements (10% weight):  How far in advance you must cancel (same day to 72 hours)
• Coverage Restrictions (10% weight) - Geographic limitations and state availability

We weighted reimbursement rate most heavily because getting back 75-80% of your costs versus 50% makes the biggest financial difference to travelers.

CFAR Cost Analysis Process

Our cost data comes from comprehensive CFAR quotes collected for real travel scenarios. We obtained actual pricing for 13 insurance companies across multiple trip amounts ($2,500, $5,000, $10,000) for single travelers aged 30.

CFAR Quote Collection:

• Gathered 678 individual CFAR quotes across all companies and coverage levels
• Used consistent traveler profiles (
• Calculated averages for each company across all their available CFAR plans
• Excluded annual and cruise-specific plans to focus on standard single-trip coverage

Transparency: All cost data reflects actual CFAR quoted prices, not estimated ranges. This gives you a more accurate picture of what you'll actually pay for CFAR coverage.