As international travel rebounds, travellers are urged to scrutinise their insurance policies more carefully, especially with the rise of Cancel For Any Reason (CFAR) options that still leave gaps in coverage. Experts advise early purchases and thorough comparisons to avoid costly surprises abroad.
Travel insurance is easy to dismiss until a flight is cancelled, an illness strikes abroad or a
non-refundable booking suddenly becomes money lost. For travellers putting serious cash into flights, accommodation, events and other prepaid plans, the protection can be less of a luxury than a practical backstop.
The first step is to check what existing cover already offers. Some policies include benefits such as emergency medical treatment, personal liability, illness and accident cover, but the details vary widely. According to travel advice published by SDC, the key is not to assume that one policy covers every part of a trip, especially when international travel is involved.
The distinction between trip cancellation and trip interruption also matters. Cancellation is designed for problems that arise before departure and may reimburse money lost when a trip never happens. Interruption applies once travel has begun and can help with the costs of cutting a trip short. For travellers who want even broader flexibility, Cancel For Any Reason, or CFAR, is an optional add-on rather than a standard feature. NerdWallet and other insurance guides say CFAR typically reimburses only a portion of prepaid non-refundable costs, often around 50% to 75%, and usually has to be purchased soon after the trip is booked.
Credit card travel perks can create a false sense of security. Chase notes that CFAR is generally not included as a card benefit, and many card-linked protections leave gaps around medical cover, pre-existing conditions or certain cancellation scenarios. Annual travel insurance can make sense for frequent flyers, but policies often focus on medical and interruption cover unless cancellation protection is added. SDC says the safest approach is to read the fine print early, compare options and buy cover soon after booking, since some benefits depend on that timing.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
