For many of us, the pandemic underscored the importance of maintaining flexibility in our plans, especially when it comes to travel, where various unforeseen events can disrupt our schedules.
For the utmost flexibility in travel insurance coverage, opting for a plan with cancel-for-any-reason (CFAR) coverage is advisable. Unlike standard travel insurance plans that only cover cancellations for specific reasons outlined in the policy, CFAR plans guarantee coverage for any reason whatsoever. Whether you change your mind or encounter unexpected circumstances, you can file a claim and receive reimbursement for your prepaid, non-refundable travel expenses.
However, CFAR coverage can come at a higher cost. It’s essential to carefully review available plans and select one that offers optimal coverage within your budget constraints. Here’s our evaluation of the top CFAR travel insurance plans for 2024.
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Best for pre-existing medical conditions: Aegis
Aegis
Cost with CFAR: $435
Cost without CFAR:$290
CFAR reimbursement:75% of trip cost (max $10,000 per traveler)
Other coverage highlights:CFAR is packaged with
Aegis offers the Pandemic Plus plan, which can be augmented with a CFAR coverage option. With CFAR, travelers are eligible for a reimbursement of 75% of non-refundable travel expenses, up to a maximum of $10,000. Additionally, this plan features a pre-existing benefits waiver, ensuring coverage for medical emergencies associated with chronic conditions.
prons:
- CFAR provides reimbursement for 75% of non-refundable expenses.
- The company offers both annual and single-trip plans.
Cons:
- Rental car coverage is exclusively offered with pricier plans.
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Best for rental car coverage: AIG Travel Guard
AIG Travel Guard
Cost with CFAR: $419
Cost without CFAR:$342
CFAR reimbursement:50% of trip cost
Other coverage highlights:Optional “Wedding Bundle” coverage applies if wedding is canceled
The AIG Travel Guard Preferred plan provides CFAR coverage, but it only reimburses up to 50% of non-refundable travel expenses, which is the lowest among the companies reviewed. In terms of cost, the Preferred plan falls in the mid-range. Additionally, Travel Guard offers optional rental car coverage of up to $50,000, priced at $83 for one week of travel.
pros:
- $50,000 of rental car coverage available as an option.
- Nice selection of available optional coverages, including those for pet owners, wedding travel, and adventure sports.
cons:
It offers one of the lowest CFAR reimbursement percentages available.
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Best for lost luggage: Berkshire Hathaway
Berkshire Hathaway Travel Insurance
Cost with CFAR:$858
Cost without CFAR:$400
CFAR reimbursement:50% of trip cost (max $10,000 per traveler)
Other coverage highlights:$2,500 coverage for lost luggage
Berkshire Hathaway’s LuxuryCare plan provides CFAR coverage with a reimbursement rate of 50% for non-refundable expenses, which is one of the lowest among the plans reviewed. Despite this, the plan comes at a high cost of $858, even with the CFAR option included.
However, the plan does offer a substantial benefit of $2,500 for lost luggage, providing ample coverage for replacing personal items and ensuring a comfortable continuation of your travels.
pros:
- The $2,500 baggage coverage is one of the most generous among the companies we evaluated.
- The plan features a pre-existing medical conditions waiver, providing added peace of mind for travelers with existing health concerns.
cons:
- The CFAR option is the most costly among available choices.
- The CFAR benefit offered is among the least generous in comparison to other options.
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Best for medical coverage: Generali
Generali Travel Insurance
Cost with CFAR:$710
Cost without CFAR:$473
CFAR reimbursement:60% of trip cost
Other coverage highlights:$250,000 medical coverage; Includes telemedicine services
The Generali Premium plan includes CFAR coverage as an optional feature, offering reimbursement of up to 60% of non-refundable travel expenses. However, the plan’s standout feature lies in its extensive medical coverage limits. It provides $250,000 coverage for emergency expenses and $1 million for emergency transportation. Additionally, Generali customers have access to 24/7 telemedicine services, enabling virtual visits for non-emergency medical needs with a licensed U.S. physician.
pros:
- Offers one of the highest levels of medical coverage.
- Includes rental car coverage as part of the plan.
cons:
- CFAR benefit is on the lower end.
Best for low cost: John Hancock
John Hancock Travel Insurance
Cost with CFAR:$396
Cost without CFAR:$264
CFAR reimbursement:75% of trip cost
Other coverage highlights:Optional rental car coverage available
- The John Hancock Bronze plan offers a cost-effective CFAR option.
- Provides reimbursement of up to 75% of non-refundable travel expenses.
- Offers $50,000 of medical coverage and $750 for lost luggage.
- Higher coverage amounts are available with the company’s premium travel insurance plans.
Pros:
- Offers generous CFAR coverage at an affordable price.
- The Bronze plan provides $50,000 medical coverage, with the option to upgrade to $250,000.
Cons:
- CFAR is not available to customers in New York.
Best overall for CFAR: Seven Corners
Seven Corners
Cost with CFAR:$352
Cost without CFAR:$248
CFAR reimbursement:75% of trip cost
Other coverage highlights:Interruption for any reason (IFAR) coverage also available
Our top choice for comprehensive CFAR coverage is the Seven Corners Trip Protection Basic plan. Seven Corners provides reimbursement for up to 75% of non-refundable travel expenses. Additionally, the plan boasts a substantial $100,000 coverage for medical expenses. For added flexibility, travelers can opt for interruption for any reason (IFAR) coverage for just an extra $11. It’s worth noting that all these benefits are included in the company’s most affordable plan.
pros:
- The Seven Corners Trip Protection Basic plan offers the optimal blend of coverage and affordability.
- Additionally, all plans include 24/7 emergency services and travel assistance, enhancing peace of mind for travelers.
cons:
- The waiver for pre-existing medical conditions is exclusively offered with the pricier plans.
- Baggage loss and delay coverages are comparatively lower than those provided by other companies.
Best for active travelers: Tin Leg
Tin Leg Travel Insurance
Cost with CFAR:$746
Cost without CFAR:$308
CFAR reimbursement:75% of trip cost (max $20,000 per traveler)
Other coverage highlights: Package includes coverage for loss of sports equipment, loss of sports fees, and adventure sports coverage
Tin Leg offers CFAR coverage as a pricier option, priced at $438 as per our quote, when added to their Gold level travel insurance plan. Despite the cost, you’ll benefit from reimbursement of 75% of your travel expenses, with a cap of $20,000, which stands as the highest maximum limit among the options we reviewed. Additionally, Tin Leg caters well to physically active travelers, providing coverage for equipment like bikes and skis, sports fees such as race entry fees, and adventure sports.
pros:
- CFAR reimbursement capped at $20,000.
- Emergency medical coverage extends up to $500,000.
- Sports coverages cater to the needs of active travelers.
Cons:
- One of the priciest CFAR choices in our assessment.
Best for families with small children: Travelex
Travelex Travel Insurance
Cost with CFAR:$736
Cost without CFAR:$370
CFAR reimbursement:75% of trip cost (max $10,000 per traveler)
Other coverage highlights:Plan covers children under age 17 at no additional cost.
Travel plans involving small children can often be unpredictable. If you’re contemplating CFAR coverage for such occasions, Travelex is worth considering. Their Select plan offers CFAR with a reimbursement rate of 75% for non-refundable expenses, with a cap of $10,000. Moreover, Travelex includes coverage for children under the age of 17 under an adult’s plan at no extra charge.
Pros:
The plan provides coverage for children under the age of 17 at no additional charge and also includes coverage for pre-existing medical conditions.
cons:
- One of the most expensive plans.
What is CFAR and how does it work?
CFAR coverage complements the standard trip interruption coverage provided by a travel insurance policy. While most standard plans offer trip cancellation coverage, which reimburses non-refundable trip costs if you have to cancel before departure due to specific reasons outlined in the policy, CFAR extends coverage to any reason, regardless of whether it’s listed in the contract.
With CFAR coverage, you can be reimbursed for reasons not typically covered by standard trip cancellation policies, such as personal reasons or unforeseen circumstances like COVID-19 outbreaks or last-minute changes in plans. However, it’s important to note that CFAR reimbursement may cover only a percentage of your non-refundable costs, typically ranging from 50% to 75%.
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How to select the best CFAR coverage
Here are some guidelines to help you secure the best CFAR coverage:
- Evaluate the entire plan: CFAR is often offered as an optional add-on by major travel insurance providers along with their standard plans. However, some companies may require you to purchase a more expensive base plan to qualify for CFAR. Be sure to compare different plans to avoid paying for unnecessary coverage.
- Assess the cost of CFAR coverage: When comparing CFAR options from different providers, take note of the associated costs. CFAR is typically a pricier add-on, with costs varying among providers. In our analysis, prices ranged from $77 to $458. It’s essential to shop around and utilize services like Squaremouth and travelinsurance.com to compare prices from multiple insurers.
- Review the level of CFAR coverage: Consider the percentage of reimbursement offered by CFAR coverage. In our review, reimbursement percentages ranged from 50% to 75% depending on the provider. This aspect can significantly impact the amount you receive in the event of a claim, potentially amounting to thousands of dollars.
CFAR offers maximum flexibility for your travel plans
CFAR coverage provides reimbursement under your travel insurance policy regardless of the reason for cancellation, even if it’s not listed in the policy contract. However, it’s often a costly optional addition, and the reimbursement percentages differ among insurance companies. It’s essential to assess your CFAR options thoroughly to ensure you obtain the necessary coverage at a cost that aligns with your travel budget.
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Frequently asked questions (FAQs)
Q.1Is CFAR worth it?
CFAR coverage offers unparalleled flexibility, but it comes at a cost. In our assessment, the priciest CFAR option more than doubled the expense of the base insurance plan. Therefore, it’s reasonable to question its value. Evaluate your confidence in your travel plans. Are there potential circumstances that could prompt cancellation? Additionally, review the refund policies for prepaid expenses like airfare, hotel bookings, and entertainment. If these costs are non-refundable, CFAR could prove beneficial.
Q.2 What if I don’t have CFAR but want to cancel my trip?
If your reason for cancellation aligns with the situations specified in your policy contract, you can submit a claim to your insurer and anticipate reimbursement under the standard trip cancellation coverage. However, if the reason does not fall within those listed, reimbursement is unlikely.