Trip Cancellation vs. Cancel for Any Reason
Last updated on 01/28/2020
At InsureMyTrip, we know the importance of expecting the unexpected when it comes to travel insurance. Lucky for you, and all of our travelers, there are two different benefits that will cover a cancelled trip: trip cancellation and Cancel for Any Reason
You will find basic trip cancellation coverage in every comprehensive policy. This will extend coverage for the cancellation of a trip for specific unforeseen, covered reasons.
Commonly, travel insurance plans, including cruise insurance plans, will cover reasons such as:
- The unexpected death, illness, or injury of you and/or a traveling companion that deems you unfit to travel, by order of a licensed physician
- The hospitalization or death of a non-traveling family member
- Weather or common carrier related issues (varies by policy)
- Unforeseen natural disasters at home or the destination
- A legal obligation, such as being called for jury duty or to appear as a witness in court
The details vary from provider to provider and with each plan. If you do need to cancel, you will be reimbursed 100% of the prepaid, non-refundable trip cost for which you are insured and can provide documentation. All of this coverage, is only if the trip is cancelled due to a specific, unforeseen covered reason.
Cancel for Any Reason
Cancel for Any Reason (CFAR) is an optional travel insurance benefit available on some of the plans available with InsureMyTrip. Usually, this benefit is an additional charge on the plan, but it comes with extended coverage that you may find worthwhile.
Unlike basic trip cancellation coverage, the CFAR benefit has a few eligibility criteria:
- Depending on the policy, only available within 10-21 days of initial trip payment
- You MUST insure 100% of your pre-paid, non-refundable trip cost
- Cancellation with the travel supplier must occur 48 or 72 hours before departure date, depending on the plan
- Benefits may only cover between 50%-75% depending on the policy.
With CFAR, it doesn't matter why you have to cancel your trip – you just can. Often times, travelers will purchase CFAR coverage when traveling to a part of the world with civil or political unrest. This allows the traveler to cancel if uncomfortable with leaving for the trip - second thoughts, fear of safety or a bad omen appeared. Regardless the reason if you are outside 48 hours before your trip, you can cancel.