Cancel-for-any-reason trip insurance on the rise: Travel Weekly

The number of travelers purchasing travel insurance with a cancel-for-any-reason benefit is on the rise, according to insurance comparison site InsureMyTrip.

Based on policies sold via InsureMyTrip, in January, 8% of travelers added cancel-for-any-reason, or CFAR, coverage. That number stood at 7.5% in February. In March, it increased to 14%, and it saw another uptick in April to 16%.

Related podcast: Trade Secrets, episode 6: Travel insurance deep dive
 
CFAR benefits are available on some plans for an additional charge and typically reimburse 50% to 75% of a trip’s cost, InsureMyTrip said. The time-sensitive benefit has to be added within a certain period of time after booking a trip.

“Fully vaccinated Americans are starting to book trips again but appear to be more inclined to seek maximum trip cancellation flexibility,” InsureMyTrip product manager Meghan Walch said in a release. “While cancel-for-any-reason coverage does tend to cost more than a traditional travel insurance policy, more travelers are now opting to make that investment.”

Last week, the mainland United States was the top destination travelers purchased policies for on InsureMyTrip. It was followed by Mexico, Costa Rica, Hawaii, the Dominican Republic, Israel, Iceland, Turks and Caicos, the Caribbean, the Bahamas, the U.S. Virgin Islands, Aruba, Jamaica, Puerto Rico and Alaska.

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