Interest in Cancel For Any Reason (CFAR) insurance has jumped roughly 27% since the start of March, according to travel insurance brand Squaremouth.
Several global events in 2026 have already disrupted travel plans, prompting many travelers to prioritize flexibility when planning trips.
CFAR insurance is not just for impulsive cancellations. This coverage allows travelers to cancel for reasons standard policies may exclude and still receive partial reimbursement for prepaid, non-refundable trip costs.
Common scenarios where CFAR offers protection that standard policies may lack include unsafe travel conditions without an official travel ban or government closures, voluntary job changes or schedule conflicts, financial constraints that arise after booking a trip and events that were known before the policy was purchased, such as winter storms or hurricanes.
“Travel insurance policies with the CFAR upgrade provide the most flexibility to cancel your trip,” said Chrissy Valdez, Senior Director of Operations at Squaremouth. “This upgrade typically increases a policy's cost by about 40% to 50%, but we’ve already seen how valuable that added flexibility can be for travelers affected by major events in 2026.”
CFAR is not a standalone policy, but rather an upgrade to a comprehensive plan. It typically must be purchased within 14 to 21 days of the initial trip deposit, depending on the provider.
"While this may be the only benefit that provides flexibility where standard coverage falls short, it does have limitations,” said Valdez. “CFAR typically reimburses between 50% and 75% of prepaid, non-refundable trip costs, requires travelers to insure 100% of their trip expenses, and generally requires cancellation at least two to three days before departure.”
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