As the coronavirus continues to run rampant around the world, an increasing number of people are becoming worried about the viability of travel. This widespread concern has caused thousands of people to purchase travel insurance policies with “Cancel for Any Reason” (CFAR) clauses.
Most travel insurance policies are not going to cover a trip cancellation simply because someone is nervous about contracting the coronavirus. That’s why so many people are choosing to add a CFAR clause to their travel policies.
Traditionally, most people avoid CFAR clauses because of how expensive they make a policy. While actual costs differ between insurers, adding a CFAR can add 40 to 60 percent more to the overall cost of a travel policy. A standard travel insurance policy is usually seven to ten percent of the total cost of the trip. Add another 40 to 60 percent on top of that, and that’s roughly what a travel insurance policy with a CFAR clause will cost.
CFAR policies only offer a maximum reimbursement of 50 to 75 percent of the trip, depending on which plan you select. Naturally, a higher percentage makes for a more expensive policy. It’s also worth noting that most policies still require two to three days notice prior to your departure. A CFAR travel insurance policy does not give you a carte-blanche to pull out of your trip at any time.
Despite the costs, an increasing number of consumers are turning to CFAR for peace of mind during their travels. Stan Sandberg, co-founder of travelinsurance.com spoke with Forbes about this recent surge in CFAR policies.
“We’ve seen a surge in policy sales with Cancel for Any Reason selected as an optional upgrade,” says Sandberg.
Megan Moncrief, chief marketing officer at Squaremouth.com, another travel insurance comparison site also spoke with Forbes. “Since the coronavirus outbreak became widely known in late January, we have seen a 108 percent increase in policies purchased with the Cancel for Any Reason upgrade this year,” says Moncrief.
If you are traveling, a travel insurance policy can give you the peace of mind you need to enjoy your vacation, no matter what comes your way. If you’re traveling internationally in the near future, it’s certainly worth pricing out a travel policy with a CFAR clause.
To learn more about what travel insurance options are available to you reach out to TGS Insurance at www.tgsinsurance.com.