Trip Cancellation & Cancel For Any Reason (CFAR) Travel Insurance

You've paid for the flights. You've booked the hotel. Then life happens.

Whether it's a sudden illness, a family bereavement, or simply a change of heart, trip cancellation insurance means you won't lose every penny of your hard-earned holiday money. At CompareSelect, we compare both standard trip cancellation cover and Cancel For Any Reason (CFAR) policies — so you can travel with a proper safety net beneath you.

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Trip cancellation insurance reimburses your non-refundable, pre-paid travel costs if you're forced to cancel your trip before departure due to a specific covered reason.

What does it typically cover?

• Unexpected illness or injury (you, a travelling companion, or a close family member)
• Death of you or a close family member
• Redundancy or compulsory jury service
• Your home becoming uninhabitable (e.g. due to flooding or fire)
• Adverse weather that causes the complete cancellation of your outbound transport
• Foreign & Commonwealth Development Office (FCDO) advice against travel to your destination

What does it typically exclude?

• Pre-existing medical conditions (unless declared and accepted by the insurer)
• Disinclination to travel — simply not wanting to go
• Cancellations caused by events known at the time of booking
• Business or financial reasons not specifically listed in the policy

Average cost: Policies start from around £12 for a single trip, depending on destination, trip length, and traveller age.

CFAR — or Cancel For Any Reason cover — is the upgrade that removes the need for an excuse.

Where standard trip cancellation cover has a list of qualifying reasons, CFAR lets you cancel your trip for literally any reason at all — a work deadline, second thoughts, a difficult pregnancy, bad reviews of the resort — and still reclaim a significant portion of your costs.

Key things to know about CFAR:

• Typically reimburses 50–75% of your non-refundable pre-paid costs
• Must usually be purchased within a set number of days of your initial trip deposit (often 14–21 days)
• You must cancel at least 48–72 hours before your scheduled departure to be eligible
• Available as a standalone policy or as an add-on to a base travel insurance plan

Average cost: CFAR policies or add-ons start from around £28, depending on your total trip cost and insurer.

Not sure which is right for you? Our comparison tool shows you both options side by side so you can weigh up the cost versus the extra peace of mind.

Most trip cancellation policies set a maximum benefit limit per person — commonly between £1,500 and £10,000 depending on the policy tier. Higher-value trips (long-haul, cruises, multi-destination itineraries) warrant choosing a policy with a higher cancellation limit.

Example: You book a two-week holiday to the Maldives for two people. Total pre-paid, non-refundable costs: £4,800. Ten days before departure, one of you is hospitalised and unable to fly.

• With standard trip cancellation cover (limit of £5,000 per person): your full £4,800 could be reimbursed, subject to your excess.
• With CFAR at 75% reimbursement: you'd receive up to £3,600 back — even if the reason for cancelling wasn't illness.

Not all trip cancellation policies are equal. When you compare on CompareSelect, here are the key factors we surface for you:

Cancellation limit — the maximum the insurer will pay out per person. Make sure it covers your total trip cost.

Excess — the amount you pay towards any claim. A lower excess means less out of pocket when you need to claim.

Covered reasons — the longer the list of qualifying cancellation reasons, the more protection you have.

Pre-existing conditions — check whether your medical history is covered. Always declare conditions honestly.

Time-sensitive purchase requirements — especially important for CFAR, which often must be bought within days of your first deposit.

Is CFAR travel insurance available in the UK? Yes, though it's less common than in the US market. A growing number of UK-focused insurers and specialist providers offer CFAR as an add-on or standalone policy. CompareSelect lists those that do, making it easy to find and compare them.

Can I buy trip cancellation insurance after booking? Yes — and you should do so as quickly as possible after booking. However, CFAR cover typically has a strict purchase window (usually within 14–21 days of your first trip payment), so don't delay if you want that flexibility.

Does trip cancellation cover flight-only bookings? Yes, as long as the flights are pre-paid and non-refundable. The policy will cover your out-of-pocket losses up to the policy limit.

What if my airline cancels my flight? If the airline cancels, you are generally entitled to a full refund from them under UK aviation consumer law (retained from EU Regulation 261/2004). Trip cancellation insurance primarily covers you cancelling — not the airline. However, some policies do include supplier failure or scheduled airline failure insurance (SAFI) as an added benefit.

Does trip cancellation insurance cover COVID-19? This varies significantly between insurers. Some policies cover cancellation if you test positive for COVID-19 before departure; others don't. Our comparison tool flags COVID-19 cancellation cover where it's included, so you can filter for it easily.