CFAR Travel Insurance Value Calculator
Cancel For Any Reason (CFAR) endorsements can add 40–80% to a travel insurance plan. This tool compares the incremental premium to the reimbursement limit so you know the cancellation probability required to break even, plus the expected net value using your own risk estimate.
Examples
- $7,200 trip, $540 CFAR premium, $350 standard plan, 75% reimbursement ⇒ Incremental cost $190.00, break-even probability 3.52%, expected value $173.00 when you expect an 18% cancel chance.
- $12,500 trip, $880 CFAR premium, $420 standard, 60% reimbursement, 10% cancel risk ⇒ Incremental cost $460.00, break-even probability 6.13%, expected value -$160.00 so CFAR may not pencil out.
FAQ
Should I include refundable bookings in trip cost?
No. Only include prepaid, non-refundable components such as villa deposits, charter flights, or tour balances that would be forfeited.
How do I estimate my cancellation probability?
Look at past trip cancellations driven by health, work, or family factors. If you're planning around hurricane season or IVF timelines, adjust the probability higher.
Does the calculator account for partial reimbursements?
Yes. The reimbursement percentage lets you model carriers that only pay 50% or 60% of the insured amount.
Additional Information
- Most CFAR policies reimburse 50–80% of prepaid costs and require cancellation at least 48 hours before departure.
- Break-even probability divides the incremental premium by the reimbursement limit so you can compare it to historical cancellation rates.
- Expected value can be negative even when CFAR provides peace of mind; use it alongside qualitative factors like health or work volatility.