As the poet Robert Burns said in 1785, “The best laid plans of mice and men often go awry.” This statement is especially true when it comes to planning for a trip. Travel can be a life-changing event, particularly because it involves so many important aspects of our lives. When we travel, we are effectively taking our financial, personal, medical, and business lives with us.
When you step out for a trip, whether it be domestic or international, business or pleasure, you are putting your health and your finances at risk. Of course, unless you are travelling to particularly dangerous places or doing especially risky things while travelling, your chances of something seriously bad happening to you are very low.
Still, even small mishaps, delays, and flight cancellations, while not dangerous, can add up very quickly in terms of their cost to you. This is where travel insurance comes in. But, on the other hand, what if you yourself need to cancel your travel plans at the last minute for reasons that you cannot foresee? That is where cancel for any reason travel insurance (CFAR) comes into play.
In order to make a claim against a regular travel insurance policy and collect payment due to a mishap, accident, illness or cancellation, you have to fulfill certain conditions as outlined in the policy. For example, unless you have purchased a specialty travel insurance policy, then your insurance claim will not be valid if you do something very risky (such as skydiving, scuba diving, or bungee jumping) or travel in a high-risk area.
And, while most insurance policies are designed to cover your expenses in the event of a cancellation by one of your carriers, they may or may not cover you if you cancel your trip due to illness. And, they almost never cover your expenses if you cancel the trip for no particular reason. For that, you need cancel for any reason travel insurance.
Cancel for any reason travel insurance provides trip cancellation protection if a traveler is prevented from taking the trip for any reason not otherwise covered by the policy. So, if you have purchased this type of insurance and then you decide at the last minute that you cannot take the trip, some or all of your expenses are refunded to you.
To be eligible for this type of coverage, you must purchase the plan within a certain period of your initial trip deposit (varies by provider) and meet the plan’s cancellation conditions. See your plan’s details for more information.