Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.If you're planning the trip of a lifetime, you'll definitely want to consider protecting your investment with a travel insurance plan that includes a "cancel for any reason," or CFAR, clause.Travel insurance can help pay for any unexpected expenses that may arise during your adventure. Whether you've planned a complex itinerary or are traveling somewhere that is expensive to reach or has inflexible deadlines, your insurance policy provides financial peace of mind. And CFAR coverage offers an additional layer of protection for your travels by allowing you to recoup a portion of your costs if you need to cancel your trip. Each of the reputable insurance carriers on this list offers at least one plan with optional CFAR coverage, and has thousands of positive traveler reviews nationwide.When shopping for travel insurance, keep in mind that CFAR coverage usually is an optional add-on to a base policy. It typically increases the total cost of your insurance coverage by about 40%.If you have a credit card, you may already have travel insurance protection and not even know it. However, the travel insurance that comes with credit cards rarely covers cancel-for-any-reason changes. So if you need the protection or peace of mind that comes with CFAR flexibility, don't rely on your premium credit card to help you get your money back. If you're just looking for basic travel protection, however, you'll likely find it in your wallet already if you hold the Chase Sapphire Reserve, American Express Platinum, Chase Sapphire Preferred,  Capital One Venture X or the American Express Gold card. (Or if you are a small business owner, the Chase Ink Business Preferred credit card and the Business Platinum Card by American Express offer many of the same travel insurance benefits.)Each of these cards meets or exceeds the coverage ceilings on comparable travel insurance plans for categories such as trip interruption and cancellations, plus generous baggage loss and delay compensation. And the medical emergency, evacuation and included rental car coverage on any of these cards outstrips the coverage on all the independent travel insurance plans on this list. Note: While many travel insurance plans with CFAR coverage will include protection for COVID-related travel obstacles, many credit card travel insurance plans do not. To accurately compare the cost of CFAR coverage from the insurance carriers we recommend, we collected quotes for a hypothetical two-week trip to three countries in Europe for two travelers ages 38 and 45 that includes a river cruise, renting a vacation home and taking several flights. The total cost of travel comes out to $14,000 between two people. Cancel-for-any-reason insurance cover doesn't come cheap. You can typically expect CFAR coverage to increase the cost of your policy premium by 40% to 50%, and most issuers will require that you purchase it within two to three weeks of your initial travel deposit. After that, you'll no longer be eligible to add CFAR coverage to your plan. For our hypothetical trip, adding CFAR coverage to our policy quotes cost anywhere from $242 to $847 for two travelers, easily doubling the cost of the plan from some providers. However, this coverage offers peace of mind for up to 75%, or $10,500, of the total travel cost. CFAR coverage can be a hefty expense on top of budgeting for an expensive trip, but there are times when it's well worth the additional investment. If you're planning a high-risk trip with a lot of physical or logistical uncertainties, you'll want as much medical and evacuation coverage as you can get, as well as the flexibility to cancel, reschedule or postpone your travel until you are physically or emotionally capable of tackling the challenge. Each of the policies listed will allow you to recoup a significant portion of your financial investment if you need to change your plans. If you plan to travel at a fast pace or will be transiting through a number of destinations, trip and baggage delay or loss can become a serious issue, particularly if your gear is essential for your activities, such as in the case of golf or ski equipment. Each of the travel insurance plans we chose includes at least some level of delay or loss coverage, which can help you purchase backup gear if needed without further strapping your finances. Keep in mind that many premium credit cards include baggage and travel delay and loss protection. So even if you do have a CFAR policy in place, your credit card benefits may be able to help you supplement any additional expenses you incur if your policy ceiling is too low for your needs. There is no one-size-fits-all "best" insurance plan, especially for CFAR coverage. Even for the same person, the right policy will vary from trip to trip, depending on your activities. If you're primarily concerned about getting your money back if your schedule changes, you may be able to get away with a basic plan that allows you to add CFAR coverage. If you're undertaking a grueling hike through some challenging mountain ranges, you may want to select a policy that includes generous medical and evacuation protection, plus flexibility to reschedule or re-book your trip in case of injury. And if you plan to visit a number of destinations within a short amount of time, trip delay or baggage loss protection may need to be one of your top priorities. Seven Corners is a well-known travel insurance carrier that has served thousands of travelers. The RoundTrip Choice plan offers a CFAR add-on that covers up to 75% of total trip costs, with a maximum of up to $75,000 in reimbursement. Medical coverage is also generous, with up to $500,000 per person for eligible medical expenses and evacuation/repatriation limits of up to $1 million per person. Seven Corners also offers generous benefits on lost baggage and delayed travel or baggage expenses. Baggage delay benefits kick in after just six hours, and go up to $500 per person. The Choice plan does not insure travel canceled by tour operators that are or have gone out of business, so this policy may not be the best fit for travelers who plan to visit destinations with tenuousAIG Travel Guard is one of the best-known names in the travel insurance industry, with several plans available for traveler needs in every direction. AIG also provided the lowest quote for our hypothetical Europe travelers despite offering the highest ceiling on CFAR reimbursement. Both AIG's Preferred and Deluxe insurance plans offer CFAR coverage as an add-on to the policy, and some policies cover up to 75% of total trip costs going all the way up to a maximum reimbursement of $112,500. Many AIG policies also include COVID coverage even without CFAR protection, as well as a number of ancillary benefits such as rental car protection and even pet travel insurance. Travelexis a great option for travelers who plan to participate in strenuous or adventurous activities during their trip. While the CFAR coverage add-on only reimburses up to 50% of nonrefundable trip expenses, it still provides a certain modicum of peace of mind in case of emergencies, with cancellation available as an option up to 48 hours before travel begins. Travelex offers low medical coverage compared with its competitors, with a maximum of up to $50,000 per person. Travelers participating in adventure sports can purchase an optional add-on bundle for additional coverage. In case of emergency, Travelex policy holders might do well to consider the travel insurance benefits on their credit cards to supplement any potential medical expenses. Trawick's policy with CFAR coverage was one of the priciest plans in our comparison, but the carrier's popularity amongst travelers is undeniable, for many reasons. The Safe Travels Explorer is particularly beneficial for pet owners who may incur medical expenses for their animals, as the plan includes up to $250 toward unexpected costs for cats and that who accompany their owners in their travels. While Trawick's CFAR coverage was one of the most expensive add-ons we evaluated as well, the carrier offers generous compensation margins for travelers who need it, with up to 75% reimbursement for nonrefundable trip costs. AXA Assistance USA is a great option for our hypothetical Europe cruise travelers, with its coverage of up to $1,500 per person for missed cruises and tours. This insurer also covers lost and delayed ski, sports and golf equipment – items that aren't always included in lost or delayed baggage coverage under other carriers. The rest of your belongings are safe too with AXA, as lost baggage claim ceilings are up to $3,000 per person - more than double some of its other competitors. Unfortunately, AXA may not be the best fit for travelers who need high-ticket travel protection, as the upper limit for CFAR reimbursement only goes up to a maximum of $50,000 despite covering up to 75% of total nonrefundable expenses, which is lower than the ceilings from other competitors such as AIG and Seven Corners. Furthermore, CFAR insurance coverage can only be added on to AXA's top-tier Platinum plan. TravelSafeis a great option to consider if you have a lot of stops or transits on your trip, or if you are an expat living abroad. This insurer offers flexible coverage terms for longer travel durations. If you are 79 years old or younger, you can purchase a single plan that can cover your adventures for up to 120 days. Furthermore, reimbursement for baggage delays and losses, trip delays and missed connections kick in far more quickly than most competitors, with up to $2,500 per person for eligible missed travel connections available at the three-hour mark. While TravelSafe's medical coverage of up to $100,000 may be on the lower side for travelers who anticipate potential medical expenses, those with the right credit cards may be able to supplement their emergency costs through a claim with their card issuer.C Travel Insured offers great plans for digital nomads, backpackers and other people who spend significant amounts of time on the road each year. This carrier offers both single-trip and annual travel insurance policies, and annual plan holders can opt to purchase CFAR coverage for the whole trip or for specific riskier segments of travel only. C Travel Insured also includes job cancellation insurance as part of its core insurance plans. In contrast, carriers who offer this benefit often do so within the bounds of a CFAR add-on. Unfortunately, C isn't the best fit for everyone. The annual plan isn't available for residents of several states including Missouri, Montana, New York, Pennsylvania and Washington. The medical coverage limits on C plans may be low for some, although travelers might be able to supplement your medical expenses by utilizing their credit card travel insurance benefits.Cancel-for-any-reason insurance protection helps you recoup up to 75% of your nonrefundable travel expenses if you need to cancel your trip for personal reasons. CFAR coverage is an optional add-on product when you purchase certain travel insurance policies.You may want to purchase CFAR insurance if you are taking a complex, expensive, risky or time-sensitive trip. If not, the cost of CFAR may be prohibitive, raising your policy premium by an average of 40% to 50%.Most insurance carriers will require that you purchase cancel-for-any-reason protection within two to three weeks of your initial travel date. After that point, you won't be able to add CAR coverage to your policy.Depending on the insurance plan you purchase, you will usually receive a maximum refund between 50% to 75% of your nonrefundable travel costs when you cancel a trip for eligible reasons.

Source: Business Insider

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