Should you … or shouldn’t you? CFAR explained

Who ever thought we’d be watching all travel cancelled – and the entire world basically in a travel-restricted lockdown? While it’s ALWAYS a wise decision to purchase Travel Protection before you take off on your next adventure (land or sea), with today’s uncertainties, selecting the right protection becomes more important than ever.  You need to know whether your trip cancellation and interruption insurance covers the non-refundable portion of your travel fees, in the event you decide to cancel your booking.  My best advice:  read the fine print carefully!  If it isn’t listed in the description of coverage, don’t assume!
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Please note:  I am NOT an insurance agent.  I do NOT sell travel insurance.  I DO, however, strongly encourage my clients to purchase a Travel Protection Policy and will recommend several suppliers so you can make the best choice for your circumstances.  The information provided in this blog is generic, basic information.  Before making any decision, please contact me and I will direct you to an agent who is licensed to discuss in detail and sell insurance.

Basic Trip Cancellation Insurance usually covers sudden and unexpected situations, such as a medical emergency.  It doesn’t cover pre-existing events (such as medical conditions, possible work-related restrictions OR, as is now the situation, the COVID-19 virus!). 
 
Standard Travel Insurance policies will not cover losses due to the current coronavirus outbreak, regardless of government travel advisories and restrictions, or travel supplier cancellations. 

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​CFAR – or Cancel for Any Reason Policy is truly the only way to be sure that you will be refunded at least a portion of costs if you make the decision to not travel.  Right now, CFAR is the ONLY coverage available that includes the COVID-19 virus pandemic.

CFAR is an optional, time-sensitive add-on benefit that is available only on certain plans.  It will allow you to cancel your travel for any reason – including if you just decide you don’t want to travel.  While it is more expensive, it will provide the most protection.
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You will have to meet specific eligibility requirements to add the CFAR option, and you must purchase the policy within 14-21 days of making the initial deposit or payment on your travel.
 
You must insure the entire pre-paid and non-refundable costs of your trip, including any subsequent trip costs (flights, transfers, etc.).  CFAR will reimburse only about 50-75% of your trip costs; depending on your plan, it will also reimburse 100% for a standard covered cancellation. 

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​You may still have a chance to be refunded at least some of your travel investment, even if you don’t have insurance.  Here are some examples:

• If a medical emergency or travel advisory arises, and you must cancel your vacation plans, your travel advisor can contact the travel supplier to see how it usually handles these types of situations and what options they will offer.  Travel Advisors have the expertise in maneuvering policies and negotiations and often have a relationship with the supplier that will help ease the way, when there is any room to negotiate. 
• While most suppliers do not have a 100% cancellation policy for uninsured travelers, many of them have eased their policies to allow travelers the option to cancel and still receive either a refund or a Future Travel/Cruise Credit in view of the safety and health concerns.  
• If a situation arises in a particular area or destination, the tour company/travel supplier might decide to continue with the tour/cruise, but change the itinerary,  including the same tour at a later time, or a similar tour at a different destination agreeable to you.  Most cruise lines include in their contract (which is something you should always ready carefully) that they can change the itinerary without notice should the need arises (weather, unrest, anything out of their control).

 
The very best advise I can give you is to listen to your Travel Advisor and at least check out the options available for Travel Protection.  We never know what will happen and we fully expect things to go just as we planned.  The current pandemic is a perfect example of why we shouldn’t assume such!
 
Wishing you happy and healthy future travels,

Terie