Okay, so we wish this wasn’t true. In addition to all the other travel expenses, now we’re going to pony up for some kind of testing, plus now cancel for any reason trip insurance.
We started buying trip insurance ourselves only when needed, and writing about it, more than a decade ago. Last fall your editors traveled extensively internationally and purchased trip insurance that gratefully wasn’t used. But six months ago was like living in a different world, given what has happened in the interim.
Imagine if that trip had been for this spring instead of last fall!
“Cancel for any reason” (CFAR) coverage is a travel insurance coverage “option” that will reimburse prepaid, non-refundable trip expenses. This provides the flexibility needed in today’s unknown world to cancel your trip, for any reason whatsoever. Keep in mind that trip insurance generally does not provide any coverage for canceling unless you or an immediate family member are sick. So just because the world is upside down does not provide any reason to get your money back, unless you purchase this specific coverage.
How does “Cancel for Any Reason” work?
In a nutshell, it gives you the ability to cancel the trip without any questions asked. Keep in mind, however, that these policies provide either 50% or 75% refund, so build that into your planning. Also, keep in mind that most policies allow you to cancel up to 48 hours before travel commencing.
CFAR for COVID
If you test positive, and we hope you don’t, the regular trip insurance will cover you because of illness. CFAR can help if you know within 48 hours of travel that testing is not an option, or results will not be known in time, and you need to cancel.
When to buy trip insurance and cancel for any reason coverage.
This depends on the policy, but in our experience, typically it needs to be purchased within 14-days after your first trip payment is made.
How far in advance do you need to cancel your trip?
Again, this is policy-specific, but generally, you need to cancel at least two days before starting your trip for the cancel for any reason coverage to be valid.
Where do you get “cancel for any reason” coverage?
Most companies selling trip insurance offer this as an optional, extra-cost option. We’ve used Insure My Trip for years, but have also used Squaremouth. There are a plethora of options either via agencies or directly from the providers. It is coverage not typically available through airlines.
Comparison shopping for trip insurance: How much does it cost?
We went shopping for Hawaii trip insurance just now and here is what we found. We used the following details for our what-if scenario: $2,000 in trip insurance covering two people, traveling for seven days from California to Hawaii in mid-August 2020. The various options offered cost (before adding CFAR) $52 to $238 (total for two passengers). That was for comprehensive coverage including trip cancellation, trip interruption, baggage loss and damage, and much more. But did not include CFAR.
The range of options in order to have CFAR was $156 to $357; a substantial increase. At both ends of the cost spectrum, CFAR coverage provided 75% of non-refundable trip costs, so long as the following rules were adhered to. 1) purchase was made within 14 days of initial trip payment, 2) any subsequent arrangement(s) were added to the coverage within 14 days of the date of Payment/Deposit, 3) insurance is purchased for the full cost of all non-refundable prepaid Covered Trip arrangements, and 4) the trip is canceled no less than 2 days before the scheduled departure date.
Here’s why cancel for any reason is essential in an unknown world.
Honestly, we have rarely purchased this coverage before, but wouldn’t consider traveling without it now and for the foreseeable future, so long as there are significant expenses for which we cannot be assured of receiving a refund if we canceled. That includes most airfares, accommodations, etc. Car rentals typically don’t require advance purchase, so we won’t be insurance those. Obviously, the less you need to insure, the lower the insurance premium cost.
Please retract my previous comment minutes ago. I misread my email from Allianz Travel Insurance. The email stated I do have medical insurance if needed with any illness 2 days prior or during my trip to Oahu.
I have a trip planned for dates April 20-26,2021 of which I followed all the rules and arranged for travel insurance within 14 days of booking airline tickets s. In my case with Allianz Trip Insurance. I just received a response when I checked on the CFAR Insurance and was told I did not have this coverage and only Travel Agencies write these. It was also noted I did not have Medical Coverage. I reviewed my policy and I do have $10,000 in medical which includes medical transportation to the point of my departure. Please be savvy and keep all documentation concerning first point of contact with salesforce. I return every April (not 2020 of course) in celebrate of my deceased Son’s birthday and ANZACZ Day at the Punchbowl a must if you have never experienced this event.
Aloha BOH,
I work for a health care system on the west coast, and we just were informed of a nationwide shortage of Covid testing reagent. This means only symptomatic people will get tested until the shortage is over. This likely makes Hawaii’s plan of pre-flight testing moot. I would recommend that everyone delay travel to Hawaii until the testing can be done on everyone again. Sadly, this will likely mean many months more of tourism stoppage.
“Demand for C0VID-19 testing has steadily increased while the supply of materials required to run tests has not increased to meet demand. A backlog of patient samples is beginning to build up as a result. Sample collection will continue; however, we do not anticipate that we will receive higher volumes of reagent to have capacity for additional testing for at least several more months due to the national shortage. As such, we may run into days where we are not able to accommodate all patients. We need your support to be able to continue to return test results within 48-72 hours and prevent further strain on our testing capacity”
Hi James.
Thanks.
Aloha.
Aloha and thanks so much for your well researched information.
I am wondering if there is any site I can access that will list the various businesses that are currently open on Kauai. We are back on island now and notice restaurants with signage, but haven’t been able to find any sort of comprehensive list. We would likely go out to eat if we had access to this information. Also, friends wanting to visit from the big Island ……is there a list of the hotels that are now open, activities etc?
I know this is off topic, but I believe we are not alone in our frustration when it comes to finding out where things stand. Mahalo!
Hi Joan.
Thanks. We are unaware of any such site/information. We don’t know ourselves what is open and what hours they are keeping, and we are here.
Aloha.
Could you please advise me. I have tickets to fly to Hilo on the 31 of July. I live part time in Pahoa. Should I reschedule for Aug. 1 to avoid the quar antine?
Hi Rickey.
We’ll update with more information on August 1 as soon as we obtain it.
Aloha.
Aloha. Good info but I suspect many ( most?) people are going to look at all of this confusing & constantly changing Gov Ige directives and say “ I’ll wait for a vaccine.” I don’t think insurance is the answer. And regarding a vaccine and a comment made about “40%” effective rate, my wife is a Level 1 ER/Trauma Manager. She said the effectiveness directly relates to the specific vaccine and virus. Some vaccines like for measles are highly effective. Aloha
Hi Tom.
Thanks.
Aloha.
Hi how do I find out about the trip insurance you are taking about? I couldn’t find any info on who to call thanks Susie
Hi Susie.
We provided two companies in the article and there are others. You can Google them or search for travel insurance.
Aloha.
We had CFAR with a well known highly regarded travel ins carrier and our friends with the “other one” — both the best for travel insurance. Guess what? Pandemics do not qualify for the insurance. BE CAREFUL what you are recommending because even though we believe in CFAR insurance for travel, buyers need to know that it’s not any good if a pandemic is declared (this has nothing to do with not wanting to travel because you personally are fearful, etc)
Hi Koli.
We need to clarify before approving your comment. Your information is incorrect. There are no exclusions for “cancel for any reason” coverage. That is why it is called by that name. Period.
Aloha.
We have been planning our trip for over a year.
As of now, HI is requiring a neg CVD19 Test 3 day prior.
Problem.
Cant get a test without symtons.
Cant get results in time
WHAT happens if you get the virus AFTER you get a neg test result?
Staying in OAK night before to catch early SWA flight.
Our plans are Aug 15-20 at ILKAI (HNL) AND 20-29 at Wyndham Beach Villas (KAUAI)?
Suggest each flight to HI Do a forehead test in air and/or before departure.
MAHALO
Hi Brent.
We anticipate more information from the state within a few days at most.
Aloha.
I have read with interest about travel to Hawaii during the c00vid19 pandemic. My extended family, 10 of us, were scheduled to celebrate our 50th wedding anniversary in Hawaii in July. Not happening! Fortunately we got most of our money back when we had to cancel. We worked quickly to rebook to St. John, USVI. We took out trip insurance because of the threat of hurricanes; CFAR insurance was not available. Due to changing travel requirements in the USVI, we thought we were not going to be able to travel there either. It would have cost us thousands of dollars. Yes,CFAR is good if you can get it, but some travel insurers aren’t offering it at this time. Hope to visit Hawaii next year!
Because life can be unpredictable I usually purchase CFAR insurance for our travels. My daughter was planning to travel to Europe at the end of February and we purchased CFAR insurance with Travel Insured. A week before her departure, cases started to go up in Europe and we decided that it would be best to cancel the trip. I canceled her flight 3 days before her planned departure and filed all the paperwork right away. To this day, I have not heard anything from Travel Insured and I have pretty much given up on receiving the insurance reimbursement. It is entirely possible that processing time is extra lengthy right now and we may get reimbursed eventually. I do not know.
Yes, this has been our experience, even in good times. We ended up working through our credit card to at least get back our insurance premium.
Don’t give up. I’ve been a Travel Advisor for 21 years and Travel Insured is a very reputable company that I’ve used most often. If you call them and the hold times are long, they will call you back.
On another travel insurance note: The current ‘Pandemic’ is no longer an
UNFORESEEN EVENT, which means you won’t have coverage if you cancel due to the Pandemic unless you have a CFAR policy. Be sure to read all policy details very carefully so that you are completely aware all the policy details and any exclusions.
Well in my opinion, It is still an outrageous some of money to pay. So at best you’ll get 75% of your non-refundable expenses reimbursed should you cancel within the appropriate timeline however just using your example of a trip to cost $2000, you’re spending upwards of $300+ Which is 15% of the cost of your example trip. Then you’d be losing 25% on top of that so the total cost would be 40%. I can appreciate that there could be unforeseen circumstances such as getting sick and not being able to travel but just to counsel because you essentially changed your mind is foolish. For what it’s worth, just book a trip and commit to it
We’re not in Kansas anymore Toto! 🙁
It’s a brave new world out there!
I wonder if in the future “pandemic” will be enough to get a refund with CFAR, or if that word will now be part of the small print exceptions such as “acts of God” and “acts of war”. If it is an allowable reason, I would anticipate premiums increasing dramatically.
All I know is I want the good old days again! Had my best vacation ever on a carefree trip to Maui last October, and was planning on doing it again this year. But I’m not willing to even consider it until a reliable vaccine is widely distributed.
Ha Ha Ha Ha! You can just about COUNT on Pandemic being an exclusion the same as riot or war. Friends in the medical profession tell us that vaccines for viruses are usually only 40% effective. We are thinking more and more that going anywhere that requires one is iffy.
Many, MANY years ago, my mother told me that what doesn’t kill us makes us stronger – she was talking about bacteria and viruses. She told me that bacteria and viruses keep us strong – IF we are strong enough to beat them. I have never forgot her words and they are as true today as they were oh so many years ago.
Hi Colleen.
There are no exclusions for cancel for any reason coverage. We have verified this.
Thanks for your 218 comments!
Aloha.
That’s good to know. Still pretty hefty premiums to add onto an already expensive trip. Not everyone lives on the West Coast :0) We are going to wait until the dust settles a bit before moving forward. Take care and hope you are feeling ‘good as new’ very soon.
Good info, thanks. This will certainly be necessary for travel to just about anywhere but it really runs up the cost of the trip. A family of 4 could easily be looking at spending an extra $700 or more in addition to the already very expensive condo, car, high state taxes and resort fees- all for a one week stay. We love Hawaii, but I’m afraid that we will be priced out very soon. I think mainland trips may be in our future.
Hi Linda.
Agree that it is expensive, but with all the uncertainty, it still is worth investigating going forward. If you’re driving, and only have accommodation expenses, there are fewer things to insure.
Aloha.
Ordinarily 1 CFAR policy will cover your entire family so you don’t need to get more than one policy for a trip. Our vendor’s CFAR policies cost approximately 9% of your trip booking fees.
Please. How much for air car hotel maui
Hi JP.
We’re not sure what you are asking for. Sorry.
Aloha.
Is there any additional information from the Governor’s office regarding testing to re-enter Hawai’i?
It’s like all news concerning the islands has just gone silent!
Mahalo Beat of Hawai’i for the awesome updates and your incredible insights regarding Hawai’i 🌺
Hi Pam.
Thanks. We’ll have an update later today.
Aloha.
Can’t wait to hear!
Mahalo for your help and stay safe.
Beat of Hawai’i rocks 🌺
Hi Pam.
Thanks for all of your comments.
Aloha.
Very informative! Thank you very much for doing the research on insurance cost!
Hi TL.
Thank you.
Aloha.
Aloha,
Thank you for all the great info you provide the public. I have a trip planned to the Islands on SW and they do give flight credit if you cancel within 24 hours. I’m glad I booked with this airline in case we are not able to make our trip because of CO0ID.
Thank you,
Gina
Hi Gina.
Thanks. In your situation you would not need to insure your flights. Accommodations are another matter.
Aloha.
You can cancel a nonrefundable Southwest flight within 10 minutes of departure and get credit for the full dollar amount to use for a year. And there are ways to even extend that time limitation. If you use Rapid Rewards points, you can always cancel for no fee and all points are returned to your account. Right now Southwest is offering a deal for RR members to trade in dollars for points – could be a good deal. If I were planning a Hawaii trip in the near future, I’d book on Southwest if possible to have the flexibility that no other airlines offers. (I don’t work for them!!) Re other airlines, the CFAR insurance is pretty expensive, and might cost about the same as the cancellation fee from the airlines – worth doing that cost comparison.