CFAR Becomes a Popular Add-On, Despite Cost
At the same time, pandemic uncertainty has led to a noticeable growth spurt in Cancel for Any Reason (CFAR) insurance, which some insurers now offer as an optional upgrade across their entire range of travel policies. (CFAR is just what it says: Insured travelers can cancel for any reason they want—including fear of traveling due to the virus.) However, CFAR, which reimburses 50% to 75% of prepaid, nonrefundable trip costs upon cancellation, can add considerably to a policy’s cost.
Today, about 27% of travel insurance purchases now include the CFAR upgrade, compared to 19% in 2020, according to data compiled by Squaremouth Analytics, the research arm of travel insurance comparison site Squaremouth. Prior to the pandemic, that figure was around 8%.
In addition, for summer trips this year, nearly 35% of all purchases on its site involved policies specifying “Coronavirus Cancellation” or “Coronavirus Medical” benefits, Squaremouth reports.
Read the full Investopedia article online here: https://www.investopedia.com/travel-insurance-becomes-hot-commodity-in-forever-changed-pandemic-era-5181165