Trip Cancellation vs. Cancel for any Reason

There are two different benefits that will cover you to cancel your trip: Trip Cancellation and Cancel for Any Reason.

Trip Cancellation

The first and most commonly used is Trip Cancellation. Included in every comprehensive policy, Trip Cancellation covers you for specific unforeseen covered reasons that cause you to cancel your trip. The most common reasons for cancellation include:

  • becoming unexpectedly ill or injured and being rendered unfit to travel (by order of a licensed physician)
  • hospitalization or death of a non-traveling family member
  • various weather or common carrier related issues (varies by policy)
  • unforeseen natural disasters at home or the destination
  • legal obligation, such as being called for jury duty or to appear as a witness in court
  • work related reasons (varies heavily by policy, usually only for layoff/termination)

With Trip Cancellation, you are covered to cancel up until departure. Should you cancel, you will be reimbursed 100% of the prepaid and non-refundable trip cost for which you are insured and can provide documentation. Really its only weakness is that it covers for specific reasons.

Cancel for any Reason

Cancel for Any Reason (CFAR) is an optional benefit available on only about 12 different policies, usually for an additional charge. Unlike Trip Cancellation, Cancel for Any Reason has a few eligibility criteria:

  • It is only available within 10-30 days of your initial trip payment (depending on the policy).
  • You MUST insure 100% of your pre-paid and non-refundable trip cost. This is very important, you must insure to the dollar or higher.
  • Cancellation of your travel arrangements and notification of the insurance company must occur more than 2 days before your scheduled departure date.
  • You will not be reimbursed 100% of your trip cost. Cancel for any reason returns between 50%-80% depending on the policy.

The advantage here is that it doesn't matter why you have to cancel your trip. Some common reasons for buying CFAR include the following (all of which would never be covered with trip cancellation):

  • political or civil unrest
  • war
  • declining health/death of a friend or pet (as opposed to a family member)

These are just examples though. Regardless of why you might need to cancel a trip, Cancel for Any Reason will cover it.

Written by on 8/24/13.
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Question:


We are renting a villa on St John VI in March. Our rental agreement states "In the case of a natural disaster such as hurricanes there will be no refunds made through the villa management". Would trip insurance cover our deposit even though the trip might be several months away?
LindaS,
07/05/2014

Answer:


You can purchase a policy up until the day before departure, however; you might not have coverage for some time sensitive benefits. Some time sensitive benefits are, but not limited to: Pre-Existing Condition Waiver, Financial Default, Terrorism, Cancel For Any Reason and Cancel For Work Reasons. Most plans require that you purchase a policy within 10 - 30 days of your initial trip payment, and insure all prepaid, non-refundable trip costs to receive these time sensitive benefits. We can make a suggestion based on your travel needs. The easiest way to help you narrow the search is to call us at 1-800-487-4722 and we can help find the best plans for your particular concerns.
NicholeH,
Customer Care insureMyTrip
07/05/2014
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Question:


Do I include fares PLUS taxes and fees when buying a trip interruption/cancellation (for a cruise) policy?
C,
05/30/2014

Answer:


Yes, you would include everything pre-paid and non-refundable.
David M.,
Customer Care insureMyTrip
05/30/2014
1 person found this helpful.
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Question:


Does the trip cancellation insurance if we are already on a trip and have to cut it short due to 1 of the included reasons? My dad is 92 years old and I never know when something might happen to him.
RandiT,
05/24/2014

Answer:


Trip interruption is the coverage that allows you to end the trip early for specific listed reasons and be reimbursed the unused portion of your trip expenses.
ChristopherG,
Customer Care insureMyTrip
05/24/2014
2 of 2 people found this helpful
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Question:


Can I take insurance to cover any cancellation after booking and paying flight tickets
Sue,
05/17/2014

Answer:


There are 3 conditions that must be met to purchase a Cancel For Any Reason Rider as follows: Purchase the policy within 10-30 days of First Trip Payment; Insure ALL prepaid and non-refundable travel expenses prior to departure; Trip must be canceled more than 2 days prior to departure date. If you meet all 3 of these conditions, most of the policies will reimburse you 75% of your trip costs, unless otherwise noted. The Cancel For Any Reason will show under its own box. Please make sure to click on the underlined phrase to view the requirements to qualify for this option. If you decide to buy this Rider, make sure to click on the box near the Cancel For Any Reason Rider and hit the 'buy' button at the top or bottom of the quote. Please note that these policies are State-specific.
NicholeH,
Customer Care insureMyTrip
05/17/2014
3 of 3 people found this helpful
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Question:


We are planning to take our horses to a guest ranch in September for 4 nights. Does the cancel for any reason include if the roads to the ranch are closed due to wildfire, or if our horses get sick and we can't go?
CindyW,
05/10/2014

Answer:


Cancel For Any Reason is literally ANY reason. There are 3 conditions that must be met to purchase a Cancel For Any Reason Rider as follows: Purchase the policy within 10-30 days of First Trip Payment; Insure ALL prepaid and non-refundable travel expenses prior to departure; Trip must be canceled more than 2 days prior to departure date. If you meet all 3 of these conditions, most of the policies will reimburse you 75% of your trip costs, unless otherwise noted. The Cancel For Any Reason will show under its own box. Please make sure to click on the underlined phrase to view the requirements to qualify for this option. If you decide to buy this Rider, make sure to click on the box near the Cancel For Any Reason Rider and hit the 'buy' button at the top or bottom of the quote. Please note that these policies are State-specific.
NicholeH,
Customer Care insureMyTrip
05/10/2014
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Question:


We are traveling with friends and they are booking our flights using their credit card. We are reimbursing them. Can we still get travel insurance?
CG,
04/05/2014

Answer:


Yes, you insure items based on who is listed on the reservation, not necessarily who pays for it.
ChristopherG,
Customer Care insureMyTrip
04/06/2014
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Question:


I am going on a mission trip and the cost is variable depending on supplies needed. If I can not go they will refund my money except for airfare so do I only use airfare as my cost of trip to insure?
LindaM,
03/10/2014

Answer:


Correct, only pre-paid and non-refundable expenses can be insured.
David M.,
Customer Care insureMyTrip
03/10/2014
1 of 2 people found this helpful
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Question:


We will be using frequent flier miles to "pay" for our airfare. If we need to cancel the flights, we will not incur any penalties due to my frequent flier status. Do we need to include this for a policy that includes "cancel for any reason?"
ElizabethL,
03/05/2014

Answer:


You would only need to include any out-of-pocket taxes or fees paid when the tickets were booked. You would also want to include any fee the airline would charge to redeposit your miles back if you canceled the trip.
NicholeH,
Customer Care insureMyTrip
03/05/2014
3 of 4 people found this helpful
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Question:


How far in advance must I get travel insurance?
LINDA,
02/11/2014

Answer:


As soon as you make the first deposit/booking/payment towards the trip you become eligible to buy insurance. We recommend purchasing it within the first 10-21 days after making this payment (especially if you need coverage for cancel for any reason or pre-existing conditions), but you can technically buy coverage up until the day before departure.
David M.,
Customer Care insureMyTrip
02/11/2014
3 of 6 people found this helpful
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Question:


I am planning on a month long trip with a tour company.It will take me to 3 countries. There is the main trip with a pre and post trip country. When looking at policies, they don't seem to make allowances for the pre and post trip countries. Do I purchase based on the country I will spend the most time in, the main trip country? If so, will my time in the other countries be covered?
Judith,
01/25/2014

Answer:


The length of a "trip" is considered from the day you leave your home until the day you return home and you would insure all prepaid, non-refundable travel arrangements that are made prior to departure. The destination is whichever country you will be spending the most time in during your trip. If you'll be visiting several destinations equally (or spending most of it on a cruise ship) then list the country where your trip begins. You will still be covered while traveling outside of the selected country, so long as you are not visiting a destination that is considered restricted. If a policy does consider certain destinations restricted, you can find this list in the terms and conditions section.
NicholeH,
Customer Care insureMyTrip
01/25/2014
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Question:


I will not purchase airline tickets until months after purchasing trip insurance. can we just insure the non-refundable costs of hotels? We might have non-refundable fees for re-scheduling the air faire and want to insure that we are not disqualified from canceling for any reason.
CHARLESR,
12/22/2013

Answer:


Since you do not know the cost of your airfare, you can insure what you have for non refundable expenses thus far, to get the policy in place during the time requirement for Cancel For Any Reason. Once you book additional arrangements, you can then call us back within 10/14/21/30 days (policy specific) of booking that arrangement to add it to your policy, pay any additional premium due, and keep your Cancel For any Reason Rider. When you are requesting the optional Cancel For Any Reason Rider you must insure ALL pre paid non refundable expenses. Unless you would receive the full value of the air travel ticket back in cash, the ticket is non refundable. Some airlines offer you the ability to pay a fee and reuse the ticket within a year, this does not equate to being a refundable ticket, because at no point can you get your actual money back. In these types of situations, you would need to insure the full cost of the ticket to be Cancel For Any Reason compliant. When it comes to regular trip cancellation (specific covered reasons), provided you are not insuring for pre-existing medical conditions coverage, on most plans you would be able to insure the "re-issue" fee charged by the airline to re use your ticket if you so choose. Please keep in mind if you choose to do this, and then are unable to use the ticket within the allotted time frame set forth by the airline, you cannot go back and change your claim to the full cost of the ticket.
ChristopherG,
Customer Care insureMyTrip
12/22/2013
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Question:


I purchased non refundable airline tickets for a family trip in August. We don't have to pay for the hotel until we arrive. We just learned that my granddaughter has to be home the week we were going to be away for high school orientation and team tryouts so we want to move our trip up a week. Would cancellation insurance cover that?
Howard,
11/30/2013

Answer:


Unfortunately, insurance is for unforeseen events. Since you are already aware that you need to make changes to your trip, insurance will not cover this. Also, in the future, the Trip Cancellation benefit is if you need to cancel your trip completely due to a covered reason, and not to reschedule the trip.
NicholeH,
Customer Care insureMyTrip
11/30/2013
4 of 6 people found this helpful
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