Overview
You’ve planned the perfect vacation — booked the flights, reserved the hotels, mapped out every must-see stop. But a few weeks before departure, you start to second-guess everything. Maybe a friend announces their wedding for the same weekend. Maybe your pet gets sick and you don’t feel right leaving. Or maybe the news has been filled with one too many unsettling headlines, and suddenly you’re not so sure about traveling overseas.
None of these are technically emergencies. Your trip is still on. But your mind is no longer at ease.
Most standard travel insurance policies only reimburse cancellations for specific, covered reasons — like illness, injury, or natural disaster. Changing your mind, feeling uneasy, or simply having a better offer come along? Not covered.
That’s where Cancel For Any Reason (CFAR) insurance comes in. As an optional upgrade to travel insurance, CFAR gives you the flexibility to cancel your trip for literally any reason and still recoup a portion of your prepaid, non-refundable expenses.
It sounds like the ultimate peace of mind for today’s unpredictable world, but there are some important catches. Let’s take a closer look at how CFAR works, when it’s worth it, and what to watch out for.
- Offers travel insurance only
- Best for: Affordable choice for adventurous spirits
World Nomads
World Nomads has been protecting adventurous and independent travelers with travel insurance coverage for more than 20 years.
Our quick take
They offer four budget-friendly travel protection plans for U.S. residents, designed to fit a variety of traveler needs and trip styles. Whether you’re traveling solo, as a couple, or with family (up to nine people), there’s a plan for you. Each option includes key benefits like trip cancellation, emergency medical coverage, baggage protection, and 24/7 non-insurance emergency assistance.
Key features
Covers 250+ adventure sports and activities
Offers Optional Cancel for Any Reason cover
Annual and Single-trip plans offered
Includes non-insurance perks like pre-trip health consultations & lost airline luggage retrieval services
Getting a quote is quick and easy
What Is CFAR Insurance?
Cancel For Any Reason (CFAR) is an optional upgrade (at an additional cost) to a travel insurance policy that allows you to cancel your trip for reasons that aren’t covered under standard trip cancellation benefits. That includes just about anything — changing your mind, fear of travel, a falling-out with your travel partner, or even a scheduling conflict with work. While you’ll need to provide documentation for your non-refundable travel costs, you don’t need to provide documentation detailing your covered reason, like illness or a death in the family.
This is in sharp contrast to standard trip cancellation coverage, which only reimburses you if you cancel due to specific, listed events. For example, standard coverage typically includes:
Serious illness or injury to you, a travel companion, or a close family member
Death of a traveler or close relative
Natural disasters
Jury duty
Terrorist events or strikes that affect your destination
But if you cancel for reasons outside this list — say you get cold feet about a long-haul flight, or you break-up with your partner— standard travel insurance won’t reimburse you.
Optional CFAR coverage from World Nomads Travel Insurance fills that gap, offering reimbursement for up to 75% of your prepaid, non-refundable trip costs if you cancel for a reason not listed in your policy.
It’s particularly useful for:
Travelers concerned about global instability
Those worried about visa approvals, job insecurity, or a change in personal obligations
People booking expensive, once-in-a-lifetime trips with limited refund options
The Catch: It’s Not as Simple as It Sounds
Despite its flexibility, CFAR coverage comes with important caveats that every traveler should understand.
1. It costs more
CFAR is a premium upgrade, and that flexibility comes at a price. You can expect to pay more than a standard travel insurance policy when you add CFAR coverage. Depending on your trip length and destination, that could equate to hundreds of dollars.
2. You only get partial reimbursement
With World Nomads, optional CFAR coverage offers reimbursement for up to 75% of your prepaid, non-refundable trip costs, not to exceed $11,250, if you purchase the highest tier plan (the Epic Plan). That means even if you cancel your entire trip, you’re still absorbing 25% of the financial loss. With the Explorer Plan, the reimbursement is capped at 50%, not to exceed $5,000.
This is a key point travelers often miss: CFAR doesn’t refund your entire investment, just a portion.
3. You must cancel at least 48 hours before departure
To qualify for CFAR benefits, you must cancel your trip at least two full days before your scheduled departure. That means if you wake up too late and miss your flight, CFAR won’t help.
4. You must purchase CFAR within a specific window
CFAR is not available as a last-minute add-on. You need to purchase it within 7 days of making your first trip payment or deposit. Miss that window, and you won’t be eligible for the upgrade.
Why is that? It’s so you can’t purchase CFAR insurance once you have a sneaking feeling you are going to cancel. You need to legitimately plan to go on your trip when you add the CFAR upgrade.
5. Some other travel insurance companies require you to insure 100% of your non-refundable trip costs
Some other travel insurance companies require you to report your total trip cost (including flights, accommodations, tours, and any other non-refundable bookings) before purchasing. If you underreport these costs, you may jeopardize your ability to claim benefits.
World Nomads does not require you to report your trip cost since there are maximum benefit amounts. You only input your destination, trip length, and age of traveler(s).
6. It’s not available in all states
Availability of CFAR coverage varies by U.S. state and the specific travel insurance provider. Be sure to check whether the policy you’re considering offers this upgrade in your state of residence. Residents of New York are not eligible to purchase a CFAR plan from World Nomads, for example.
Who Should Consider CFAR?
CFAR can be a smart investment for travelers facing uncertainty or booking high-stakes trips. Consider it if:
You’re booking an expensive international trip with lots of non-refundable components.
You’re concerned about possible visa delays, unexpected expenses popping up (like a major car repair), or a potential change in relationship status with your travel buddy.
You’re traveling during politically and economically volatile times and want maximum flexibility.
You know you may change your mind, and don’t want to lose thousands of dollars in the process.
For these travelers, CFAR offers peace of mind and a financial safety net, even if it’s not total reimbursement.
When CFAR Might Not Be Worth It
On the flip side, CFAR isn’t for everyone. It might not be worth the extra cost if:
You’re booking a low-cost or domestic trip with fully refundable flights and hotel stays.
Your travel plans are flexible and you’re comfortable with the risks.
You’re confident that any reason you’d cancel would fall under standard trip cancellation benefits (like illness or a family emergency).
The cost of the CFAR upgrade exceeds the potential benefit you’d receive from partial reimbursement.
In these cases, standard travel insurance may offer all the protection you need.
Tips for Buying CFAR Insurance Wisely
If you decide CFAR is right for you, here’s how to make the most of it:
Buy early
Don’t wait — you must purchase CFAR within 7 days of your initial trip deposit with World Nomads (other travel insurance providers may have a different time length).
Insure the full cost (if not with World Nomads)
Be sure to include all non-refundable expenses in your insured amount to maintain eligibility. World Nomads does not require you to input your cost in order to get a quote since there is a maximum benefit amount.
Compare providers and/or plans
Not all CFAR policies are the same. Some offer only 50% reimbursement, while others offer up to 75%.
Read the fine print
Understand the deadlines, reimbursement rates, and cancellation requirements before you buy.
Keep documentation
Save all receipts, booking confirmations, and communication about cancellations for potential claims.
The Point
Cancel For Any Reason insurance can be a powerful tool in a traveler’s toolkit, offering flexibility and peace of mind when plans are uncertain. But it’s not a one-size-fits-all solution. The upgrade comes with added costs, restrictions, and responsibilities that travelers must weigh carefully.
For some, it’s a smart way to protect a big investment. For others, standard coverage may be sufficient. The key is understanding what you’re buying, reading the fine print, and making an informed decision based on your risk tolerance and trip details.
Because when travel plans fall through, losing your money can sting even more than losing the trip.
- Offers travel insurance only
- Best for: Affordable choice for adventurous spirits
World Nomads
World Nomads has been protecting adventurous and independent travelers with travel insurance coverage for more than 20 years.
Our quick take
They offer four budget-friendly travel protection plans for U.S. residents, designed to fit a variety of traveler needs and trip styles. Whether you’re traveling solo, as a couple, or with family (up to nine people), there’s a plan for you. Each option includes key benefits like trip cancellation, emergency medical coverage, baggage protection, and 24/7 non-insurance emergency assistance.
Key features
Covers 250+ adventure sports and activities
Offers Optional Cancel for Any Reason cover
Annual and Single-trip plans offered
Includes non-insurance perks like pre-trip health consultations & lost airline luggage retrieval services
Getting a quote is quick and easy
by your friends at The Daily Navigator
