Cancel for Any Reason (CFAR) Travel Insurance, Explained
5 Min Read | Published: June 24, 2026
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Learn how Cancel For Any Reason (CFAR) travel insurance works, when it's available, and how to get trip cancellation coverage.
At-A-Glance
- “Cancel for any reason” (CFAR) travel insurance allows you to cancel your trip for reasons not covered by standard trip cancellation policies.
- CFAR typically reimburses a percentage of your prepaid, non-refundable trip costs, offering flexibility and peace of mind.
- Understanding how CFAR works, what it actually covers, and when to buy it can help you decide if it’s worth the added cost for your travel plans.
Booking a trip far in advance has some advantages: You may be able to snag cheaper airfare, research your destination to plan a detailed itinerary, and make the necessary arrangements at home to cover your absence. But you never know what the future holds, and sometimes life happens. Standard travel insurance policies can come in handy for specific disruptions like illness or severe weather, but “cancel for any reason” (CFAR) travel insurance may offer broader flexibility.
That said, CFAR insurance usually won’t give you a full refund, and you typically have to meet strict deadlines. Let’s take a look at how it works, what it really covers, and how it compares to standard trip cancellation coverage.
What Is Cancel for Any Reason (CFAR) Travel Insurance?
CFAR travel insurance is a type of policy you can take out to cancel your trip for any reason not covered by standard trip cancellation policies and receive partial reimbursement. When you invoke your CFAR insurance, you can expect to receive 50-75% of your prepaid, non-refundable costs.1
How CFAR Works
CFAR travel insurance isn’t typically offered by itself, and you’ll usually see it offered as an add-on to certain standard travel insurance policies. If you want to take out a CFAR policy, you’ll generally have to do it within the first three weeks of purchasing your trip accommodations, and if you want to use your policy, you usually have to cancel at least 72 hours before departure.2 In order to qualify for CFAR insurance, you typically have to insure 100% of your prepaid non-refundable costs.3
What Does CFAR Travel Insurance Cover?
Here are some of the ways you can expect to receive some of your costs back when you have a CFAR insurance policy, and some of the instances when you won’t receive a reimbursement.
Common Coverage Areas
Unlike standard travel insurance, CFAR insurance will reimburse some of your otherwise non-refundable travel costs, like flights, hotels, or tours, for virtually every circumstance. For example, if your investments take a turn for the worse and you’re suddenly less confident in your financial future, you can call off your trip with CFAR insurance. Or, if you suddenly need to take care of a sick friend or a family member, you can use CFAR to cover some of your costs with a last-minute cancellation. Sometimes you just have a change of heart, and if that’s the case, CFAR travel insurance can come in handy.
What CFAR Does Not Cover
While CFAR insurance can help you recoup some of your costs, it won’t help you get all your money back. Depending on the policy, you can receive around 50% to 75% of your non-refundable costs, and you’ll have to use it within the timeframe specified by your policy, usually a couple of days before your trip was scheduled to kick off.4
CFAR vs. Standard Trip Cancellation Coverage
Here’s a side-by-side look at how CFAR compares to standard trip cancellation insurance:
| Feature | CFAR Travel Insurance | Standard Trip Cancellation |
|---|---|---|
| Cancellation Reasons | Any reason not covered by standard policies | Specific covered reasons (e.g., illness, weather) |
| Reimbursement | 50-75% of prepaid costs | Up to 100% of prepaid costs |
| Purchase Requirements | Must be added to a base policy | Included in standard travel insurance |
| Cancellation Deadline | Typically 48-72 hours before departure | Varies by policy |
| Cost | Higher premium | Lower premium |
Is Cancel for Any Reason Travel Insurance Worth It?
If you’re planning a luxury vacation and want to take advantage of a good deal on airfare or get a little more peace of mind about your spending on a trip in the future, then CFAR insurance can be a reassuring extra step. If you’re more committed to your trip, want a full reimbursement of your costs, or already have coverage from your travel credit card, adding CFAR travel insurance may not be right for you.
Benefits of CFAR
Some of the reasons for taking out a CFAR policy may include:
- Flexibility
If you’re booking well in advance of your trip’s scheduled start, then you may value the opportunity to cancel due to changes in your life in the run-up to your departure date. - Peace of Mind
Booking a trip can be expensive, and if you want reassurance that you can get some of your funds back in the event of a change of heart, CFAR insurance can help ease your stress. - Broader Coverage
If you’re worried that you may have to cancel your trip for a reason not covered by standard trip cancellation insurance, then you may want to add CFAR insurance as a safety blanket.
Considerations for CFAR
Before you make a decision on CFAR travel insurance, you may want to keep the following elements in mind:
- Higher Cost
CFAR add-ons may add 40% to 50% more cost to your base travel insurance premium.5 - Partial Reimbursement
While you can recoup some of your funds for more reasons than traditional trip cancellation insurance, you won’t get a full refund. - Strict Deadlines
If you miss the deadline to enroll in CFAR, you may miss out on coverage. Additionally, if you cancel your flight too late, you may not receive your funds. - Credit Card Benefits
Some credit cards offer travel insurance that may provide the coverage you need for your trip.
Frequently Asked Questions
If you’re feeling uncertain about what your life will look like by the time your trip starts, then CFAR travel insurance can give you some peace of mind about recouping part of your costs. But if you already have a credit card that offers travel insurance, or you want a full refund for your trip for events covered by standard trip cancellation insurance, then you may be comfortable with other coverage options.
CFAR travel insurance offers broader coverage than trip cancellation insurance, covering reasons ranging from cold feet about going on your trip to sudden changes in your financial outlook. Plus, it’s usually offered as an add-on to standard travel insurance. Standard travel insurance may have narrower grounds for cancellation, but it can also provide a full refund for otherwise non-refundable costs.
The length of time that you have to buy CFAR travel insurance can vary based on the policy, but you typically need to take out the policy soon after you book your trip. Generally, if you want CFAR travel insurance, you have to cover your trip within the first 10 to 21 days after you book it, but check the insurer’s policies to be certain.6
The Takeaway
CFAR travel insurance offers flexibility and peace of mind for travelers who may want the option to receive partial reimbursement if they have to cancel their trip for reasons not covered by standard trip cancellation insurance. That said, CFAR insurance won’t give you a full refund, so if you’re committed to the trip barring reasons that are covered by standard trip cancellation insurance, you may want to opt out of CFAR coverage. Likewise, some credit cards offer built-in travel protection that may meet your insurance needs.
For more coverage options, explore Trip Cancel Guard and other travel benefits offered by travel rewards cards.
1, 2, 3, 4, 5, 6 “How Cancel for Any Reason (CFAR) Travel Insurance Works,” Experian
Scott Drueding Hanson is a content writer and copywriter based in Brooklyn. His work focuses primarily on personal finance.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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