Trip Cancellation and Cancel For Any Reason
One of the most frequently asked question with travel protection is what is the difference between Trip Cancellation and Cancel For Any Reason (CFAR) coverage benefits in travel protection?
The Quick Answer
Trip Cancellation means the trip is cancelled, before it begins, and the reason for cancellation is due to one of the covered reasons written in the plan and would be reimbursed 100% of the trip cost.
Cancel for Any Reason allows the traveler to simply change their mind and choose whether to cancel the trip, without needing to provide an explanation and receive 75% of their trip cost.
There are some requirements, and they are important, as explained below.
What’s A Covered Reason?
The covered reasons are listed in the plan documents, available to view prior to purchase and delivered instantly after purchase. The reasons tend to be situations that are unforeseeable and out of your control. The most commonly claimed trip cancellation covered reason is due to a medical need. This could be a sickness, injury or death of one of the travelers or their immediate family members. Other covered reasons can include: weather delays, strike, destination uninhabitable from natural disaster, mechanical breakdown of a common carrier, mandatory evacuation, bankruptcy of a travel supplier, among other covered reasons. For complete details, please refer to the plan documents, available when you create a quote online.
At the risk of being repetitive, Cancel For Any Reason literally means any reason. You don’t even have to tell us the real reason.
Act Quickly for CFAR
Trip Cancellation is available for purchase at any time prior to the trip departure date. It makes more sense to purchase earlier to receive the waiver of Pre-Existing Conditions, insuring a longer amount of time for the same price, as discussed in the 5 Reasons to Book Travel Protection Early. But this is only good advice, not a requirement.
Cancel For Any Reason is available in the TripAssure Complete plan if the plan is purchased within 15 days of the initial trip deposit date and the full cost of the trip is insured. This is the earliest date any payment was made toward any part of the trip. If a small payment toward a cruise was made first, and flights booked later, the cruise payment date is the initial trip deposit date. After 15 days, TripAssure Complete is still available for purchase, but will not include the CFAR benefit.
Insure the Trip Cost
TripAssure travel protection plans allow the traveler to insure some, none, or all of the trip cost. Trip cost includes pre-paid and non-refundable expenses of the trip. The amount of trip cost insured will set the limit on the amount of Trip Cancellation coverage. You could decide to only insure the flight, but not the hotel. You could insure zero trip cost, effectively removing the cancellation coverage benefits, but benefits like medical and baggage remain. The best practice is to make sure the full trip cost is insured, avoiding a possible unhappy customer who would only receive some of their trip cost back if they underinsured.
Cancel For Any Reason coverage limits will also be set at the dollar amount of trip cost insured. However, Cancel For Any Reason requires that the full trip cost be insured. To qualify for this coverage benefit, there isn’t an option to underinsure.
Last Chance to Cancel
Trip Cancellation allows travelers to cancel their trip any time prior to departure. This could be six months in advance, or the day of departure.
Cancel For Any Reason lets travelers cancel at any time up until two days before departure. Once the trip departure date is within two days, CFAR coverage stops. So while Cancel For Any Reason allows you the decision, it doesn’t quite allow a last minute decision.
Have CFAR? Still Have Trip Cancellation Too!
If a traveler purchased the TripAssure Complete plan and met all the requirements to qualify for Cancel For Any Reason coverage, that plan will also include Trip Cancellation coverage. Remember, Trip Cancellation can reimburse 100% of the trip cost, while CFAR is limited to 75%. This means if the reason a trip is cancelled is due to a covered reason, the traveler can claim Trip Cancellation for 100% of their trip cost. If the reason for cancelling is not listed in the plan, then a CFAR claim is the best option.
This information is meant to be a summary explanation of the differences between Trip Cancellation and Cancel For Any Reason coverage benefits in TripAssure travel protection plans. Please always refer to the plan document for specific details, and don’t hesitate to contact us with any questions.