The state of travel today, with its many pandemic-related stops and starts, necessitates that you protect your money as best you can when you’re planning a trip.
While standard travel insurance covers many things, they don’t typically don’t cover events and conditions that are ongoing, such as the COVID-19 pandemic, at the time you buy your policy. That’s where CFAR comes in.
With CFAR added to your policy, you have a much better chance of getting all of your money back if something goes wrong with the trip.
But depending on your trip providers and their policies toward cancellations, you may not even need CFAR.
Traveling? Here’s Why You May Not Need ‘Cancel for Any Reason’ Coverage
Your Airfare Is Refundable
If you buy an airline ticket that is refundable, you can get your money back if you decide not to fly. A refundable ticket also means you are allowed to change your travel plans without any hassle.
Please note that refundable fares typically cost more than non-refundable ones. The price differences vary widely, from just $30 or so to thousands of dollars.
Your Hotel Is Refundable
If your hotel is fully refundable, you can typically get your money back if you cancel within 24 to 48 hours before check-in. Canceling after that time may subject you to a fee, but it depends on the hotel.
As is the case with airfares, a refundable rate for a hotel room can cost just a few dollars more per night or be substantially more expensive than a non-refundable rate. That being said, when you buy a refundable room, you’re generally paying for the same protection that a CFAR policy would give you.
What if You Have a Travel Credit Voucher?
You may wonder if you can use Cancel for Any Reason coverage in the event that the airline gives you a credit voucher. Typically these credit vouchers expire up to one year out.
Clark says many airline carriers stipulate that credit vouchers can’t be used in conjunction with trip insurance.
In this case, you may have to wait to make a claim against your CFAR policy until the airline credit has expired to prevent claiming against the insurance and using the credit, too.
“This has been a gray area with Cancel for Any Reason insurance, and it depends on the language of the policy,” he says.
To be sure? Read the language in the insurance policy.
“Some policies make you wait until the credits have expired, and then you get back your 50, 60 or 75%, depending on what kind of Cancel for Any Reason you have. But you do have to wait generally for it to be refunded until the window is closed,” Clark says.
CFAR is great but not always necessary if you have other refund options.
Clark says you’ll have to do some homework by digging into your travel insurance terms to see if it allows you to make a claim against your CFAR policy as well as use your airline credit.
“You’ve got to read the language of the contract on how you trigger Cancel for Any Reason to make sure that the non-refundable airline tickets you’ve bought can be forfeited and you get back three-quarters of the money,” Clark says.