Angela Borden | Sep 4, 2020
Examples of some events include terrorist activities, varying kinds of weather events, strikes, and government shutdowns. These types of events can wreak havoc on a traveler’s plans. As the number and type of such events have increased, many travelers have begun asking how they can protect themselves and their wallets for similar unpredictable events.
One solution is trip insurance,* and one key benefit offered on many trip protection plans is growing in popularity. It’s Cancel for Any Reason, also known as CFAR.
Trip insurance often includes protection for:
Your unused and nonrefundable trip payments, such as hotel and airfare expenses that will not be refunded if you must cancel your trip.
Medical expenses that could occur if you get sick or hurt on your trip.
Baggage and personal belongings that could be lost, stolen, or damaged during travel.
Trip insurance can be helpful if you must cancel your trip or if your trip is interrupted or delayed due to a covered reason stated in the plan document. These covered reasons, or triggers, vary from company to company, plan to plan, and even benefit to benefit.
The most common triggers include the death, sickness, and injury of you, your family member, and your traveling companion. There are typically many more triggers as well. They include things like inclement weather and strikes.
These trip insurance triggers represent common reasons that could prevent you from traveling, but they don’t cover every possible reason you might need to cancel your trip.
For example, what if you were simply afraid to travel due to world events or the state of the economy? Fear of travel is not a covered reason provided by travel insurance. In this situation, Cancel for Any Reason could be a good option for you.
Over the years, Seven Corners has seen a variety of situations that lead people to choose Cancel for Any Reason. Other common reasons include personal or family issues, financial hardship, job demands, or simply changing your mind and no longer wanting to travel.
If you’re concerned an unusual event could make you need or want to cancel your trip, Cancel for Any Reason may be a good option for you. You won't have to meet the requirement of a specific trip cancellation trigger; you can instead cancel your trip for any reason you wish.
For example, when I traveled to Ireland three years ago, I bought Cancel for any Reason because I had an elderly dog who was in poor health. I knew if she became sick right before my trip, I wouldn’t want to go. CFAR solved my problem.
Other situations where Cancel for Any Reason can help:
It’s an optional benefit offered on certain (not all) trip protection plans that allow you to cancel your trip for any reason not otherwise covered.
If you choose CFAR, you will pay an increased amount for your insurance. Based on our research, most Cancel for Any Reason benefits can bump the cost of your trip insurance plan up by 40 or 50 percent. Why? Because you’re now buying a plan with much wider coverage for trip cancellation.
Instead of being limited to cancelling your trip for a specified number and list of triggers, you can now cancel for any reason you want. If your mom’s best friend’s uncle’s cousin became ill, you could cancel your trip. If you no longer wish to be in the same room with your traveling companion, let alone the same hotel room, you can cancel.
How do I buy Cancel for Any Reason?
You must select it when you buy your trip insurance. Unfortunately, it's not available in all states. When you use our quick quote, the benefit will be offered to you if it’s available in your state. Remember, you have to pay an additional amount for CFAR.
The most important thing about CFAR is understanding how it works. If you buy the benefit and don’t use it correctly, you will not be able to make a covered claim.
First, you must buy Cancel for Any Reason within the specified time limit. Our RoundTrip plan allows you to buy it within 20 days of the date your initial trip payment is received.
If you add additional trip costs, you must insure them within 15 days of your payment for them. Additional trip costs could include excursions or specific tours you decide to take.
Let’s say you are taking a trip to an all-inclusive in Cancun in April, and you paid a $100 deposit for your trip on January 1. You must buy your trip insurance and select CFAR before or on January 21.
You then add two excursions to your trip on February 1. You must contact your insurance company before or on February 16 to add the cost of those excursions to the amount of the trip cost you are insuring.
For RoundTrip Basic, RoundTrip Choice, and RoundTrip Elite, you must cancel no later than two days prior to your scheduled departure date.
For our RoundTrip plan, you will be reimbursed 75 percent of the amount you insured, which is comparable to most other CFAR benefits in the industry.
In addition, the Cancel for Any Reason benefit in our RoundTrip plans does not cover the failure of your travel supplier to provide the bargained-for travel arrangements due to cessation of operations for any reason.
All in all, Cancel for Any Reason is a useful benefit that can make a difference to travelers who want the flexibility to cancel their trip if they wish.
*Trip insurance is included as part of a travel protection plan.
If you have any questions about CFAR and how it works, check with your agent or our inside sales staff.
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Angela Borden has been a member of the Seven Corners team since 2007. She originally joined as an underwriter, later transitioning to marketing to explore her passion for making all things insurance less confusing and more fun. (Is that possible?) When she's not working, Angela loves traveling and spending time with her family, including her two adorable dogs.