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What Is a Cancel-for-Any-Reason (CFAR) Add-On and Is It Worth It?

Team AckoSept 12, 2025

Travel plans can be unpredictable, as unexpected events, sudden changes, or last-minute doubts can turn a dream trip into a source of stress. That is where a Cancel for Any Reason (CFAR) add-on comes in.

Unlike standard travel insurance, which only covers specific mishaps, CFAR offers unmatched flexibility. It allows you to cancel your trip for reasons beyond the usual scope and still recover a portion of your prepaid costs. It usually reimburses 40-75% of prepaid expenses, making it a smart choice for travellers who value control over their plans.

If you value control and peace of mind while planning your journey, understanding how the Cancel for Any Reason add-on works can help you determine if the extra cost is truly worthwhile.

Contents

What is Cancel for Any Reason (CFAR) in Travel Insurance?
Is it Worth Getting a CFAR Add-On?
Eligibility Requirements for CFAR Travel Insurance Coverage
How Does CFAR Work?
Bottom Line
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Frequently Asked Questions

What is Cancel for Any Reason (CFAR) in Travel Insurance?

The Cancel for Any Reason add-on is a voluntary travel insurance option that covers prepaid, non-refundable trip costs. Although traditional travel insurance policies usually cover trip cancellations, the benefits come into effect under only limited, predesignated conditions.

CFAR provides more flexibility as it enables you to cancel your trip for reasons not specifically mentioned in your core policy. This allows you to reclaim a large proportion of your non-refundable expenses even when your cancellation does not qualify under the normal terms, giving you extra reassurance when the plan goes the other way.

Is it Worth Getting a CFAR Add-On?

If you think you might need to cancel your trip for personal, health, family, or work reasons, CFAR coverage can be worth the extra cost. Before getting this cover, remember to review airline, hotel, and flight cancellation policies, and if they already offer flexible refunds or credits, you may not need CFAR at all. Hence, whether a CFAR add-on is worth it mainly depends on individual travel circumstances and risk tolerance.

Let us go through an example to better understand this.

Suppose Priya books a trip to Europe six months in advance. Two months before her departure, she discovers that her business project may involve a business trip at the same time. With typical trip cancellation insurance, she will not be reimbursed since her purpose is not covered.

However, with an add-on CFAR, though, she would be able to cancel for any reason, such as a work scheduling conflict, and still recover 50–75% of her prepaid trip expenses.

This indicates that CFAR is especially relevant for travellers whose itineraries can be changed at a moment's notice. It gives them peace of mind even when the reason for cancellation is not included in regular policies.

Eligibility Requirements for CFAR Travel Insurance Coverage

Here are a few common eligibility requirements to get CFAR add-on travel insurance cover:

It must be purchased within 24 hours after you book your trip.
With this add-on, you have at least 48 hours before your scheduled departure time to cancel your trip.
All of your non-refundable travel expenses must be insured.
When you purchased the coverage, you were physically able to travel.
To utilise the coverage, each insured traveller must cancel their trip.

Please note that these eligibility criteria differ from insurer to insurer. Make sure to read all policy-related documents carefully.

How Does CFAR Work?

CFAR travel insurance add-on works as a reimbursement. When you want to cancel your trip, you need to make a claim with your insurer. To make a successful claim with the CFAR add-on, you just need to:

Meet the Eligibility Criteria: All of the eligibility requirements as specified above need to be met.
File a Claim: You can contact your insurer and ask them for the exact process to file a claim under CFAR.

If you have any difficulty buying or claiming your travel insurance, you can contact your insurer directly.

Bottom Line

A Cancel for Any Reason (CFAR) add-on offers flexibility to the travellers, which makes it ideal for uncertain travel plans. Even though it comes at an additional cost, it provides peace of mind for many travellers.

So, if you prioritise flexibility in your journeys and have many unplanned plans, CFAR can be a valuable add-on. To secure the right plan for your travel needs, explore travel insurance options online with ACKO today.

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Frequently Asked Questions

Q1. What are the downsides of Cancel for Any Reason CFAR policies?

One downside of CFAR is that it significantly increases the premium amount of the travel insurance.

Q2. Is there a time limit for claiming Cancel for Any Reason travel insurance in India?

To claim CFAR travel insurance, generally, you need to cancel the trip within the time limit specified in your policy. Usually, this time limit is 48 hours before the scheduled departure of your flight.

Q3. What is the difference between trip cancellation and cancellation for any reason?

Trip cancellation benefits reimburse up to 100% of prepaid, non-refundable expenses for covered reasons, such as a family death or disaster. On the other hand, CFAR coverage lets travellers cancel for other reasons, offering 50%–75% reimbursement. Trip cancellation is often included by many travel insurance providers, whereas CFAR needs to be separately added to your plan.

Q4. How much does the CFAR travel insurance reimburse?

CFAR travel insurance generally reimburses somewhere between 50%-75% of all your prepaid non-refundable trip costs.

Q5. How much does CFAR travel insurance cost?

If you buy a CFAR travel insurance add-on with your standard travel insurance policy, the cost will be approximately 50% more than the original price.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes. Please check the policy document for cancellation reasons, and terms and conditions of the policy.