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Trip cancellation vs Cancel For Any Reason coverage

There are many reasons why you might need to cancel a scheduled trip. But when it comes to travel insurance coverage, not all reasons are created equal.

Many potential scenarios can lead to a trip being canceled and while some may be covered by the travel insurance you purchased, others may not. When purchasing travel insurance, smart and savvy travelers should understand the different types of cancellation coverage. They should also understand which situations they apply to, so they can decide on the type of coverage that is best suited to their upcoming trip.

Having to cancel a trip is disappointing enough. You don’t want your disappointment compounded by the discovery that you won’t be reimbursed for a canceled trip because you don’t have the right kind of coverage. Generally speaking, there are two main categories of cancellation coverage: Trip Cancellation vs Cancel For Any Reason (CFAR).

 

What is trip cancellation?

Trip cancellation coverage is typically included as part of most comprehensive travel insurance policies. It can reimburse you for any prepaid, nonrefundable trip costs in the event that you cannot go on a planned trip.

So, what are the covered reasons that trip cancellation insurance may reimburse you for? It covers unforeseen events that may cause you to cancel your trip prior to your date of departure. Examples of these include the illness, injury or death of you, a family member or traveling companion, unforeseen natural disasters, inclement or severe weather that affects your journey, a terrorist incident, or jury duty, and other unforeseeable events. In each of these cases, you’d be able to make a claim for your trip cost as part of trip cancellation coverage.

In all these instances, you may only be reimbursed for your nonrefundable trip cost. (In other words, for the things you’ve already paid for prior to your scheduled departure date.) For example, if you were paying your travel supplier in installments and had only made your first trip payment or initial trip deposit at the time you canceled, you would not get the entire trip cost reimbursed, only what you had already paid for. Furthermore, if you had booked airline tickets that were refundable from the travel supplier or airline, you would have to seek a refund from them, rather than make a claim on your insurance policy.

As mentioned before, trip cancellation coverage comes as a standard part of most travel insurance policies. These policies can typically be customized to also include benefits such as emergency medical coverage, trip interruption, trip delay coverage, and baggage loss and delay — all of which may reimburse you provided you make a claim for a covered reason.

 

What’s the difference between trip cancellation and Cancel For Any Reason?

If the time has come for you to purchase insurance, you may be wondering more about trip cancellation vs Cancel For Any Reason (CFAR) coverage. Which one is right for you? The main difference you’ll want to be aware of when purchasing travel insurance is the reasoning behind making your trip cancellation claim.

As outlined above, basic trip cancellation coverage comes with restrictions on the covered reasons for making a trip cancellation claim. On the other hand, Cancel For Any Reason coverage has virtually no restrictions — you can, quite simply, cancel for any reason and expect to receive reimbursement for a percentage of your nonrefundable trip costs. This applies even if you simply change your mind.

In essence, CFAR is about preference and whether or not you’ll change your mind about going on a trip. Standard trip cancellation coverage is about unforeseen events that prevent you going on a trip you definitely want to go on.

What are some scenarios in which travelers may opt for Cancel For Any Reason coverage? Perhaps you’re not entirely sure if a business trip will go ahead due to a scheduling conflict, or maybe you feel anxious about political unrest in your destination and want to be able to back out at the last minute. Or you think you may have a change of heart about traveling. These are all situations where standard trip cancellation coverage would not reimburse you, whereas CFAR coverage most likely would.

One situation where Cancel For Any Reason coverage is particularly helpful is around COVID-19. While some comprehensive travel insurance policies, like those offered by battleface, do provide coverage for cancellations due to COVID-19 sickness, not all reasons are covered. If you’d like to have maximum flexibility and the option to cancel a trip at the last minute due to a rapidly changing situation in your destination, such as COVID-related travel restrictions or an increase in COVID cases, CFAR coverage may be right for you.

 

Should I purchase CFAR coverage? And how much does it cost?

Cancel For Any Reason coverage offers travelers peace of mind. For that reason, it costs more than standard trip cancellation coverage. In addition, there are several dependencies associated with CFAR coverage. These include how far in advance of your departure date you cancel your trip, and when you purchased your policy. It’s also important to note that this type of coverage may not be available in every US state, and generally pays a percentage of your non-refundable trip cost.

The exact cost of Cancel For Any Reason coverage will vary by travel insurance provider, specific policy, and your particular trip details. Purchasing this coverage from battleface will add to your total premium, but remember, CFAR coverage is all about having maximum flexibility and peace of mind. For some travelers, that’s impossible to put a price on. While Cancel For Any Reason coverage isn’t right for everyone, it’s smart when you’re considering your options with comprehensive travel insurance plans to look into whether it may be an appropriate addition to your trip coverage.

PRE-EXISTING MEDICAL CONDITION

Pre-Existing Medical Condition means an illness, disease, or other condition during the 180 day period immediately prior to the date Your coverage is effective :
  1. received or received a recommendation for a test, examination, or medical treatment for a condition which first manifested itself, worsened or became acute, or had symptoms which would have prompted a reasonable person to seek diagnosis, care or treatment; or
  2. took or received a prescription for drugs or medicine. Item (2) of this definition does not apply to a condition which is treated or controlled solely through the taking of prescription drugs or medicine and remains treated or controlled without any adjustment or change in the required prescription throughout the 180 day period before coverage is effective under this policy.
  3. required a change in prescribed medication. Change in prescribed medication means the dosage or frequency of a medication has been reduced, increased, stopped and/or new medications have been prescribed due to the worsening of an underlying condition that is being treated with the medication, unless the change is:
    1. between a brand name and a generic medication with comparable dosage; or
    2. an adjustment to insulin or anti-coagulant dosage.
If you, or someone you are traveling with, has a Pre-Existing Medical Condition, you can still buy a policy from us but there is no cover for any claim arising directly or indirectly from that condition.

PRE-EXISTING MEDICAL CONDITION

Any Medical Condition that, within the last 12 months, required any:

  • surgery, inpatient or outpatient treatment, referrals or investigations of any sort. This includes being on any waiting list, taking any prescription medication, tablets or required medical treatment (This will not apply to common colds, flu or contraceptive medication);
  • medical advice or treatment for any respiratory condition relating to the lungs or breathing;
  • medical advice or treatment for any heart, stroke or diabetic condition;

Hypertension or high cholesterol controlled by 1 prescription drug only and where the dosage has not been changed within the last 12 months will not be considered a pre-existing medical condition

Coverages Available:

*not all coverages are available in all states
Travel Protection Benefits Limits
Trip Cancellation 100% of trip cost (up to a maximum of $20,000)
Single Occupancy Up to trip cost
Cancel for Any Reason Up to 75% of trip cost Up to 50% of trip costs in FL(CFAR not available to NY residents)
Trip Interruption 150% of trip cost
Delay Package
Trip Delay
Maximum $200 per day up to $2,500
Missed Connection Maximum of $1,000 per covered trip
Baggage Package – Excess
Baggage and Personal Effects $2,500 $100 Deductible
Baggage Delay $100 per day up to a maximum of $500
Travel Medical Package – Excess AK, CO, ID, ND, NH – Primary
Travel Medical Expense – Adventure sports included $100,000 $50,000 in NH $50 Deductible
Emergency Dental $750
Emergency Evacuation and Repatriation of Remains Up to $500,000
Up to $1,000,000 in NH
Accidental Death & Dismemberment $100,000 or $250,000 or $500,000
Pet Medical Package
Pet Medical Expense Up to $2,000 $100 Deductible
Pet Return Up to $500
Rental Vehicle Damage – Primary Up to $35,000 per rented vehicle- Primary $250 Deductible for loss greater than $2,000
Vacation Rental Damage $1,500 or $3,000 or $5,000

Travel Medical Insurance

Some benefits are subject to an excess (aka, the deductible, or what you have to pay before we pay), as stated in the Policy Schedule, and are per Policy Period.

Benefits Limits
Cancellation and Curtailment 5,000
Emergency Medical Expenses, Evacuation and Repatriation of Mortal Remains 10,000,000 (excess 250 or 50)
Hospital Benefit 25 per day, maximum 100
Personal Accident up to 250,000
Baggage Loss or Delay up to 5,000 (excess 250 or 50)
Personal Money and Passport, limited to 250 in respect of cash 500 (excess 250 or 50)
Personal Liability 500,000
Travel Delay 500
Optional Benefits Limits
Business Extension up to 1,000 (excess 100)
Winter Sports (Ski Equipment) up to 750 (excess 50 or 100)

Travel Medical Insurance

Some benefits are subject to an excess (aka, the deductible, or what you have to pay before we pay), as stated in the Policy Schedule, and are per Policy Period.

Benefits Limits
Trip Interruption 2,000
Emergency Medical Expenses, Evacuation and Repatriation of Mortal Remains 10,000,000 (excess 250)
Hospital Benefit 25 per day, maximum 100
Personal Accident up to 5,000
Baggage Loss or Delay up to 2,000 (excess 250 or 50)
Personal Money and Passport, limited to 250 in respect of cash 500 (excess 250) *** Limited to 250 in respect of cash
Personal Liability 500,000
Optional Benefits Limits
Business Extension up to 1,000 (excess 100)
Winter Sports (Ski Equipment) up to 750 (excess 50 or 100)
Personal Accident up to 250,000
Baggage up to 10,000

Travel Medical Insurance

Some benefits are subject to an excess (aka, the deductible, or what you have to pay before we pay), as stated in the Policy Schedule, and are per Policy Period.

Benefits Limits
Cancellation up to $20,000
Trip Interruption $1,000
Medical and Emergency Expenses $5,000,000 (deductible $250)
Hospital Benefit $25 per day, maximum $100
Personal Accident up to $50,000
Baggage $2,000 (deductible $250)
Personal Money and Passport, limited to $250 in respect of cash $500 (deductible $250)
Personal Liability $500,000
Optional Benefits Limits
Business Extension up to $1,000 (deductible $100)
Winter Sports (Ski Equipment) up to $750 (deductible $50 or $100)

Travel Medical Insurance

Some benefits are subject to an excess (aka, the deductible, or what you have to pay before we pay), as stated in the Policy Schedule, and are per Policy Period.

Benefits Limits
Cancellation and Curtailment 5,000
Emergency Medical Expenses, Evacuation and Repatriation of Mortal Remains 10,000,000 (excess 250 or 50)
Hospital Benefit 25 per day, maximum 100
Personal Accident up to 250,000
Baggage Loss or Delay up to 5,000 (excess 250 or 50)
Personal Money and Passport, limited to 250 in respect of cash 500 (excess 250 or 50)
Personal Liability 500,000
Travel Delay 500
Optional Benefits Limits
Business Extension up to 1,000 (excess 100)
Winter Sports (Ski Equipment) up to 750 (excess 50 or 100)