Travel Team | Oct 10, 2022
The unpredictability of travel conditions seems like it’s at an all-time high right now. Between global pandemics, inflation, employee shortages at airports, political unrest, and the ever-present fickle Mother Nature, it’s difficult to prepare for every eventuality. Thankfully, that’s what travel insurance, including optional Cancel for Any Reason (CFAR) coverage, does.
Travel insurance can provide protection for unexpected disruptions to a trip. From medical emergencies to lost luggage, delays to emergency evacuation, travel insurance can cover a wide range of situations that might otherwise derail a trip.
Insurance providers like Seven Corners offer a variety of plans with different levels of coverage and price points. No matter your degree of risk tolerance or budget, you’ll want to think carefully about what you choose to buy.
When former Seven Corners writer Grace Lower was planning a multi-stop trip through Germany and Italy, her goal was to keep travel costs as low as possible. She planned to stay with extended family for part of the trip and rely on budget airlines and accommodations.
“Passing on non-essential purchases comes second-nature to me, but when it came time to purchase travel insurance, I was left second-guessing,” she said. With all the levels and options for benefits available, would the cheapest travel insurance be the right decision?
The answer wasn’t as clear-cut as it seemed, but Grace did know that despite trying to travel to Europe on a budget, she would be more comfortable with travel insurance. She also knew that the quality of coverage was just as important to her, if not more, than just the cost of it.
Like we said, travel insurance can help protect the money you spent for your trip, covering prepaid, nonrefundable expenses if you have to cancel your trip for a covered reason. You can go a step farther by purchasing optional CFAR coverage. This add-on benefit allows you to cancel your trip for any reason you wish, not just the covered reasons listed in your plan document.
Because CFAR is an optional benefit you can choose to add, it does increase the cost of your travel protection plan. So, is CFAR the right fit for a traveler on a budget? Grace found that purchasing insurance with CFAR comes down to two key questions:
First, what is your risk tolerance? If the possibility of uncontrollable circumstances cancelling your trip leaves you hyperventilating into a paper bag, you have a low risk tolerance and may appreciate greater levels of travel insurance coverage.
Second, how much flexibility will you want or need? Some people want the option to cancel their trip if a senior pet gets ill. Others want to be able to cancel their cruise if their favorite team makes the championship game. And still other people say they’re going on their trip no matter what. Each of these travelers wants a different level of flexibility in their trip planning.
Knowing how risk averse and flexible you are will help you determine if Cancel for Any Reason coverage is worth the cost to you. Those with a lower tolerance for risk and who want the flexibility to alter their plans for a wider range of circumstances will likely find greater value in CFAR coverage.
While CFAR offered by Seven Corners and many carriers can reimburse up to 75% of your non-refundable trip expenses, it might be helpful to know how other travelers have been helped by their CFAR coverage.
“In considering whether to add CFAR coverage to my own vacation,” Grace said, “I knew that all the added flexibility would come at a cost.” Ultimately, it was a cost she was willing to pay. Even as she tried to cut costs while traveling, adding CFAR provided greater protection for her budget.
Taking the time to read and understand your plan document — and talking with a licensed travel insurance agent — are essential steps to choosing the best travel insurance for you. Contact Seven Corners if you have questions about whether CFAR is right for your trip.
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