Travel Insurers Push Costly ‘Cancel for Any Reason’ Upgrades as Demand Holds

Travel insurers are marketing "cancel for any reason" (CFAR) upgrades, offering 50%–75% reimbursement on non-refundable trip costs for cancellations outside standard policy terms. Premiums run 40%–60% above basic plans, industry data showed June 2, 2026. Standard cancellation covers up to 100% but only for listed reasons like illness or severe weather. CFAR requires purchase within 14–21 days of initial deposit, full prepaid cost insurance, and cancellation at least 48 hours before departure. It is not sold in New York or Washington. Normal travel insurance costs 4%–10% of trip value. CFAR can raise that to 15%, making a $4,000 trip’s coverage about $600. Analysts say it benefits those with expensive, non-refundable international bookings but note tight deadlines and high premiums limit broader appeal.