Adding a “cancel for any reason” upgrade to a travel insurance policy will increase a policy’s premium by about 40%, says Steven Benna, a spokesperson for Squaremouth, a travel insurance comparison provider. He observes that since the start of 2020, the average cost of a standard trip cancellation insurance policy has been $299. During that same time, the average cost of a policy with cancel for any reason coverage has been $428—about 43% more.
During the Covid-19 pandemic, Benna says there’s been a significant increase in the number of travelers buying “cancel for any reason” coverage. Since the start of 2020, roughly 14% of all purchases through Squaremouth included a “cancel for any reason” upgrade. By comparison, about 4% of policies purchased in 2019 included the upgrade, says Benna.
What Experts Think About CFAR
For travel supplier issues
The biggest benefit of adding “cancel for any reason” coverage is the flexibility of having coverage when standard trip cancellation benefits won’t apply, says Benna. For example, in the event a travel supplier cancels, most policies will not provide coverage under trip cancellation. Amid the pandemic, many travel suppliers have either provided refunds or vouchers for future trips, but this is handled on a case-by-case basis by each individual travel supplier.
If your travel supplier offers no refund, you could receive partial reimbursement under “cancel for any reason” coverage.
For Covid coverage
A lack of Covid-related in many travel insurance plans has also emphasized the importance of “cancel for any reason” coverage. Alternately, look specifically for travel plans that cover Covid cancellation and medical expenses.
“‘Cancel for any reason’ allows you to confidently plan and book future trips, with the added protection of being able to change your mind knowing you can get a majority of your money back,” says Benna. “Based on this and our sales data, we expect ‘cancel for any reason’ will continue to be an important benefit moving forward.”
Read the full Forbes article online here: https://www.forbes.com/advisor/travel-insurance/is-cfar-worth-it/