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What is Cancel For Any Reason Travel Insurance and Do I Need It?

What is Cancel For Any Reason Travel Insurance and Do I Need It?

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Travelers often buy travel insurance to ensure they are protected in case the unexpected occurs. For most, this includes coverage in the event they are forced to cancel their trip, or if they are concerned about having medical coverage during their trip.

Now, amid the COVID-19 pandemic, travelers have more concerns than ever before about whether or not their trips will go as planned. As a result, even more travelers are looking for cancellation coverage.

However, in order for standard Trip Cancellation travel insurance coverage to be triggered, a traveler’s trip must be canceled for a reason specifically listed within their policy. Unfortunately, under most policies, the coronavirus is not covered. As a result, Cancel For Any Reason may be the only option.

What is Cancel For Any Reason travel insurance?

Cancel For Any Reason is an optional upgrade that can be added to some travel insurance policies. This benefit provides partial reimbursement for prepaid and non-refundable trip payments if a trip is canceled for a reason not otherwise covered by a policy, such as fear of traveling or simply not wanting to travel anymore due to the coronavirus.

To be covered under the Cancel For Any Reason benefit, a traveler must cancel their trip in its entirety at least 2 days before their scheduled departure date. In the event a traveler cancels their trip using the Cancel For Any Reason benefit, they can be reimbursed up to 75% of their insured trip cost, depending on the policy.

What is required to buy Cancel For Any Reason?

In order for a traveler to be eligible for Cancel For Any reason, they must insure 100% of their prepaid and non-refundable trip costs.

Additionally, Cancel For Any Reason is typically a time-sensitive upgrade. This means that most policies with Cancel For Any Reason can only be purchased within 10-21 days of the traveler’s first payment towards their trip, such as the airfare or hotel reservations.. However, there are select cruise only policies that offer Cancel For Any Reason anytime before a traveler has made their final trip payment.

How much does a Cancel For Any Reason policy cost?

Adding the Cancel For Any Reason benefit to a policy typically increases the premium by roughly 40%. In 2020, the average cost of a policy with Cancel For Any Reason is $400. Overall, the average premium for a travel insurance policy in 2020 is $307.

Does Cancel For Any Reason cover COVID-19?

Yes, the Cancel For Any Reason benefit can partially reimburse travelers who cancel their trip for any reason that is not otherwise covered by their policy. This can include travel suppliers canceling trips due to a lack of passengers, travelers not being able to enter their destination due to travel bans, or travelers simply not wanting to travel due to increased risk during a pandemic.

Does Squaremouth recommend buying Cancel For Any Reason?

Due to the increased cost for Cancel For Any Reason policies, Squaremouth only recommends this benefit for travelers who have a specific concern that cannot be covered.

Unfortunately, amid the COVID-19 pandemic, standard travel insurance coverage is very limited. Only a few providers can still offer Trip Cancellation coverage for the virus, and it can only cover travelers who contract the virus or those who are physically quarantined. For travelers who still want cancellation coverage, Cancel For Any Reason is likely the best option.

What is not covered by Cancel For Any Reason?

Although the Cancel For Any Reason benefit partially refunds cancellations for reasons that are not covered by standard policies, this benefit is not designed to cover last minute cancellations. This means that this benefit can no longer provide coverage once a traveler is within two days of their departure date.

However, a traveler’s Trip Cancellation coverage will still be in effect within the final two days before their departure date. In the event something occurs anytime before their departure date that is covered within their policy, they can be reimbursed by Trip Cancellation for all of their prepaid and non-refundable trip expenses.

How to buy a Cancel For Any Reason policy

We understand these are unprecedented and confusing times for travelers. Squaremouth’s customer service team is available from 8am to 10pm ET, seven days a week, to help travelers find the best policy for their trip for the lowest possible price. If you are looking for a policy with Cancel For Any Reason, please call us at 800-240-0369, and we will be happy to help. You may also click here to search for a policy with Cancel For Any Reason coverage.