Has anyone (successfully or not) used cancel for any reason insurance? (2024)

FAQs

Is cancel for any reason coverage worth it? ›

Most basic travel insurance policies only cover cancellations under certain circ*mstances. Cancel For Any Reason add-ons let you do just that, but they can be pricey. It might make sense if you have uncertain plans and can't book refundable tickets or fares.

Reasons to consider canceling your insurance policy:

You believe you're paying too much for insurance. Your business has changed, and you need different coverage. You're moving out of state, and your current insurer doesn't offer policies in your new location. You're unhappy with the service your insurer provides.

Our analysis found that AIG, Seven Corners and WorldTrips offer the best “cancel for any reason” (CFAR) travel insurance. If you cancel for reasons beyond those listed in your policy, a travel insurance plan with CFAR partially reimburses your insured trip costs.

Unlike trip cancellation coverage, the optional travel insurance cancel for any reason benefit (CFAR) offers partial reimbursem*nt on prepaid, nonrefundable costs if you cancel for any reason, even those not typically covered by your comprehensive travel insurance policy.

CFAR coverage is sold as an optional add-on to a comprehensive travel insurance policy. Expect to pay another 3% of your trip cost to get this coverage. CFAR typically covers up to 75% of nonrefundable expenses.

When you cancel your car insurance too soon, you can be subject to fines and even have your license suspended. You'll also potentially be on the hook for any damage and injuries if you cause an accident. Note that your auto insurance company might have a 30-day notice requirement for cancellation.

If your auto insurance policy has been canceled, it may be more difficult to purchase a new policy. Having a lapse in coverage may cause some carriers to view you as a high-risk driver, meaning you're more likely to miss payments, have claims, or receive violations.

Reasons to Cancel a Car Insurance Claim

Cancelling a claim may prevent your premium from increasing. The cost of the damage is less than your deductible. You will have to pay a deductible when you file a comprehensive or collision claim to cover damage to your vehicle.

It is never a good idea to cancel car insurance coverage if you still own a car. Nearly all states require some degree of car insurance coverage for car owners and drivers.

You should reassess that risk regularly to see if it has changed every few years, especially if the premiums are high. You shouldn't hesitate to cancel a life insurance policy—or allow it to expire—if you've identified that you no longer need it.