Why Recent Headlines are the Ultimate Case for CFAR Travel Insurance Plans

If COVID-19 proved the value of travel insurance for many skeptical travelers, the last few months might have done the same for Cancel for Any Reason (CFAR) plans.

Over the last three weeks, travel advisors in North America have navigated a gauntlet of logistical nightmares: cartel blockades in Puerto Vallarta that stranded travelers and severed access to the airport; a persistent jet-fuel shortage in Cuba that grounded flights; and most recently, a surge in Middle East tensions forcing sudden airspace closures and flight cancellations.

Many travelers were greeted with the reality this week that standard travel insurance won’t cover changes that they want, or are forced, to make because of those events.

“There are a few things that travel insurance doesn’t cover, and it seems like a lot of them are happening right now. War, for one, is not covered, and if your trip was going anywhere in the Middle East, a cancellation is a real possibility,” insuranceQuotes.com analyst Michael Giusti told TMR this week.

It’s not just that the events themselves might not be covered, but even when these situations don’t materially impact a specific itinerary, they create a “Grey Area” of fear. Clients often want to change or cancel their plans based on their own perception—right or wrong—of what is happening and where it is happening.

“Fear of travel also isn’t covered, and there are some scary things happening in the world that might give you pause before boarding a plane,” Giusti added.

The “Why” Behind the Upgrade

That’s where CFAR plans come in. While CFAR plans are generally more expensive and cover a smaller percentage of the trip than a traditional policy, they offer the only true protection in times like these.

“A standard travel insurance plan doesn’t cover fear of travel or concerns about a destination,” Dean Sivley, President of Berkshire Hathaway Travel Protection (BHTP), told TMR. “That’s why some travelers choose to add CFAR coverage to a traditional travel insurance plan—to protect a portion of their nonrefundable trip deposits if they choose to cancel for any reason.”

Daniel Durazo, Director of External Communications at Allianz Partners, told TMR the same—that “logistical disruptions” like the fuel shortages in Cuba or the blockades in Mexico aren’t typically “covered reasons” under a standard policy. Allianz’s “Cancel Anytime” product, however, serves a similar role to CFAR by allowing customers to cancel for any reason not otherwise covered—even as late as the day of departure.

“Our Cancel Anytime product allows our customers to cancel their trip as late as the day of their departure, as long as they have not departed for their trip,” Durazo said.

The Price of Peace of Mind

Travelers are essentially upgrading their insurance, like they’d upgrade their cabin class or their hotel room. While standard insurance generally costs between 4% and 10% of the total trip cost, bundling a CFAR upgrade typically adds a 40% to 50% premium to that base price. In total, a traveler might end up paying around 7% to 12% of the total non-refundable trip cost.

It’s a price for peace of mind, and it’s not something travelers are balking at anymore—especially younger ones. Sivley’s team at BHTP reported recently that Gen Z is leading the charge in insurance adoption. BHTP’s 2025/2026 “State of Travel Insurance” research found that intent to purchase travel insurance among Gen Z rose by 24% year-over-year. This is the only generation spending more on travel in 2026 (averaging over $11,000 per trip), and they are the most likely to opt for the “flexibility” of CFAR to protect those investments.

Giusti, too, told TMR that travelers are seeing that “right now might be the best time to consider Cancel for Any Reason insurance that I have seen in a long time.”

CFAR Saves Advisors Time, Too

This flexibility is also crucial when dealing with geopolitical events, which are notoriously messy and where documentation (like a letter from an airline confirming an oil shortage) can be nearly impossible to get.

“With CFAR, claimants aren’t required to provide a proof of reason for cancellation because it’s simply just that: cancel for any reason coverage,” Sivley added.

For the advisor, this is a major productivity win. Instead of spending hours acting as a claims advocate, trying to hunt down documentation for a “Grey Area” event, the CFAR policy provides a clean, documented path to a refund.