In 2026, planning a trip, whether domestically or internationally, can be fraught with uncertainty. Ongoing conflicts in the Middle East are impacting flights all over the world, while frequent government shutdowns in the United States are contributing to significant airport delays.
In response to this travel turmoil, certain insurance policies, particularly “cancel for any reason” (CFAR) protection, have seen a notable surge in interest. According to insurance comparison platform Squaremouth, sales of CFAR insurance plans rose by 27% in March 2026 as a reaction to global events.
This situation has prompted many travelers to consider trip insurance for the first time. “Uncertainty is precisely when travel insurance becomes increasingly important,” explains Suzanne Morrow, CEO of the travel insurance comparison site InsureMyTrip. “However, understanding what is and isn’t covered is crucial. For instance, missing a flight due to prolonged TSA security lines generally isn’t covered, while a flight delay caused by the airline’s crew issues might be.”
When should you buy travel insurance?
Even if you haven't initially considered insurance coverage for your journey, certain circumstances merit a reevaluation of that decision. “Travel insurance is most beneficial for trips where you stand to lose something of value, both financially and otherwise,” states Morrow. “If you're traveling internationally, venturing more than 100 miles from home, or booking a trip with substantial prepaid, non-refundable expenses like airfare, accommodation, cruises, or tours, securing insurance is advisable.”
Additionally, insurance is prudent for travelers who might be concerned about specific risks such as illness, severe weather, or other potential disruptions. "Conversely, for straightforward weekend road trips close to home with minimal costs, insurance might not be necessary," she adds.
For those contemplating the purchase of a policy, it is advisable to secure it immediately after making the first payment for the trip. “This timing unlocks the most valuable benefits,” Morrow recommends. Moreover, some policies incorporate time-sensitive add-ons that are only available for a limited period following the trip booking. “Delaying your decision does not save money; it merely restricts your options,” Morrow remarks. “To ensure maximum flexibility and coverage, it's best to act sooner rather than later.”
What’s the best type of travel insurance policy?
Experts recommend selecting a plan that aligns with your travel requirements by utilizing comparison tools. If comprehensive coverage is a priority, upgrading the basic policy to include cancel for any reason (CFAR) protection is highly advantageous.
Recently, this add-on has gained considerable popularity. “The current travel environment can leave travelers feeling powerless regarding their plans,” states Chrissy Valdez, senior director of operations at Squaremouth. “By opting for travel insurance that includes cancel for any reason, travelers can regain some control and approach their journey with greater assurance, knowing they have protective measures in place.”
However, it is essential to note that this upgrade may significantly increase the policy's cost by 40% to 50%. Nevertheless, it provides coverage for scenarios not accounted for in standard policies, such as events anticipated at the time of booking or simply opting out of travel altogether.
Before committing to a policy, confirm whether the option to add CFAR coverage is available, as not all plans provide this upgrade. Typically, this add-on must be obtained within 14 to 21 days following the initial trip deposit.
While this policy offers travelers considerable flexibility to cancel their trips, there are still significant limitations to consider. For example, travelers may not receive full reimbursement for all expenses incurred. Generally, these policies repay between 50% and 75% of prepaid, non-refundable trip expenses and require travelers to insure 100% of their trip costs. Additionally, they commonly mandate cancellation at least two to three days before departure. “Understanding how your specific policy operates is as crucial as having insurance itself.”
What type of coverage is included with my credit card?
Regular travelers often utilize travel rewards credit cards, which provide points and miles along with basic travel insurance benefits. To make the most of this option, selecting the appropriate credit card is essential. Only 32% of consumer credit cards extend travel insurance benefits. The most prevalent type of credit card coverage is lost luggage insurance, which compensates travelers with a fixed amount or a daily stipend for delayed baggage.
Other common benefits include protections for trip delays and cancellations. Many credit cards also offer rental car insurance for damage or theft.
For optimal coverage, consider a credit card that specializes in travel advantages. Remember that to benefit from these protections, the credit card must be used for booking the trip.
What about the optional travel insurance that's offered at checkout?
Though it may be enticing to add the travel insurance offered at checkout on an airline, hotel, or vacation rental website, it is imperative for travelers to scrutinize these policies against alternative options that may provide better coverage or rates elsewhere.
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