Is cancel for any reason travel insurance worth the extra cost?

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By

Angelica Leicht

Senior Editor, Managing Your Money

Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.

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November 11, 2026 / 8:19 AM EST / CBS News

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When you book a trip, it typically means you're making a financial commitment many weeks or months before you actually set out on your travel plans. Between the cost of airfare, hotel reservations, cruises and prepaid activities, it's easy to spend thousands of dollars well before your departure date has even arrived. And while planning ahead when traveling can help you secure better prices, it also leaves plenty of time for things to change before you're scheduled to leave, resulting in expensive, last-minute changes to your plans — or in some cases, an outright cancellation of your trip.

If that happens, a travel insurance policy can provide you with some financial protection. A standard policy typically reimburses certain prepaid expenses if you have to cancel for a covered reason, such as an unexpected illness or injury. Those protections have limits, though, and there are plenty of circumstances that could derail your plans but aren't necessarily covered. A change in your work schedule, destination concerns or simply deciding you no longer want to travel could leave you responsible for the costs.

Luckily, cancel for any reason (CFAR) travel insurance is also an option. This type of coverage gives travelers more flexibility over when and why they can cancel their plans, but that additional freedom comes with a higher premium, and the coverage isn't as comprehensive as its name might suggest. So, before paying extra for this type of protection, you should consider whether it's worth the extra cost.

Find out more about your travel insurance options online today.

Is cancel for any reason travel insurance worth the extra cost?

Whether cancel for any reason coverage is worth purchasing depends largely on how much you're spending, how flexible your plans are and how much financial risk you're comfortable taking. That said, here's when it may and may not make sense to purchase this coverage for your trip:

When CFAR coverage may be worth the extra cost

Paying extra for CFAR coverage can make sense when you're booking an expensive trip with substantial nonrefundable costs, particularly if there's a realistic chance your plans could change for reasons that standard travel insurance wouldn't cover. For example, if you're spending thousands of dollars on a cruise, international vacation or group trip that requires significant upfront payments, recovering even 50% to 75% of those expenses could make a meaningful difference if you need to cancel.

The added protection may also be valuable if you're dealing with circumstances that make your travel plans uncertain. An unpredictable work schedule, potential family obligations or concerns about traveling to a particular destination could all make the flexibility worthwhile. Unlike standard travel insurance, which generally requires a specific covered reason for cancellation, CFAR coverage allows you to change your plans for reasons that wouldn't otherwise qualify.

Ultimately, the more money you have tied up in nonrefundable reservations, the more valuable that additional flexibility could become. If the potential reimbursement significantly outweighs the extra premium, CFAR coverage may be worth considering.

Compare the travel insurance policy options available to you now.

When CFAR coverage may not be worth the extra cost

On the other hand, CFAR coverage may offer relatively little value if your trip involves limited financial risk. If you've booked refundable airfare, hotels with flexible cancellation policies or activities that don't require significant upfront payments, you may already have enough protection without paying for an insurance upgrade. In those cases, the additional premium could cost more than the amount you're actually at risk of losing.

The extra coverage may also be unnecessary if your primary concerns involve situations that a standard travel insurance policy already covers, such as certain medical emergencies, unexpected illnesses or other qualifying disruptions. Paying significantly more for CFAR protection may not make financial sense if you're unlikely to need its broader cancellation benefits.

Before upgrading, it's also worth reviewing the travel protections offered by your credit card and comparing the cost of CFAR coverage with the price of booking more flexible reservations. Depending on your plans, paying slightly more for refundable airfare or accommodations could provide greater flexibility without the reimbursement limits that typically apply to CFAR policies.

The bottom line

Cancel for any reason travel insurance can be a worthwhile investment if you're spending a significant amount on nonrefundable travel arrangements or have concerns that your plans could change unexpectedly. But the added flexibility comes at a higher cost, and even with coverage, you could still lose a substantial portion of what you've paid for your trip. So, before purchasing a policy, compare the additional premium against your potential financial losses, review the reimbursement limits and consider whether standard travel insurance or more flexible bookings would provide enough protection. The goal is to avoid paying for coverage you don't need while ensuring you aren't taking on more financial risk than you're comfortable with.

Edited by Matt Richardson