Can You Cancel Your Trip for Any Reason? What Aussies Need to Know

Travel disruptions can happen fast and when they do, they can throw even the best laid plans planned trips into chaos. With ongoing global uncertainty and popular transit hubs affected, many Australians are finding themselves rethinking their travel plans or facing unexpected cancellations.

For travellers heading overseas especially with Europe’s busy summer season approaching the big question is: what happens if you decide not to go? More importantly, can travel insurance help you recover the costs?

One option that often comes up is Cancel for Any Reason (CFAR) cover. But despite the name, it’s not as straightforward as it sounds.

What is Cancel for Any Reason (CFAR) cover?

Standard travel insurance typically covers cancellations for specific events, such as:

• Illness or injury
• Family emergencies
• Certain natural disasters

However, it usually won’t cover a simple change of mind.

That’s where Cancel for Any Reason (CFAR) comes in. Available as an optional add-on with some insurers, CFAR will reimburse a portion (typically 50%–75%) of prepaid, non-refundable trip costs if you cancel for reasons not covered by standard insurance. The point of of CFAR is that you don't need to justify your reason, whether that's geopolitical concerns, personal anxiety about safety, or anything else. You simply decide you don't want to go, you cancel and you claim.

This could include:

• Deciding not to travel due to personal circumstances
• Work or scheduling conflicts
• Travel plans no longer being viable
• You’ve had an unexpected expense and can no longer afford to travel right now

In most cases, you’ll need to cancel your trip at least 48 hours before departure and meet other eligibility criteria. Of course, there are always terms, so read on for the catch.

The catch: “Any reason” doesn’t mean every situation

While CFAR offers more flexibility, it still comes with limitations. Understanding these upfront is essential before adding it to your policy.

1. Government travel warnings still apply

If your destination is under a “Do Not Travel” advisory from the Australian Government, you generally won’t be covered—regardless of whether you have CFAR.

In some cases, there may be limited coverage if:

• The warning is issued after you’ve purchased your policy, or
• You’re already overseas and need to return home

But this depends heavily on the insurer and policy wording.

2. Major global events are often excluded

Despite the name, CFAR doesn’t override common exclusions found in travel insurance policies

This can include:

• War or civil unrest
• Acts of terrorism
• Pandemics or epidemics
• Government restrictions

So if your cancellation is linked to one of these events, you may not be eligible to claim under CFAR.

3. Stopovers may need to be declared

If your trip includes transit through other countries, some insurers require you to list these stopovers in your policy—even if you’re only passing through.

Failing to include them could impact your cover, so it’s worth double-checking before you buy.

4. It must be added early

CFAR isn’t automatically included in travel insurance. It’s typically an optional extra that must be added at the time of purchase, or within a limited window after booking. You can’t add it later once you’re already considering cancelling.

5. It increases the cost of your policy

Adding CFAR will raise your premium, sometimes significantly. The value depends on:

• The cost of your trip
• The level of reimbursement offered (often a percentage, not 100%)
• Your personal risk tolerance

Is Cancel for Any Reason cover worth it?

CFAR can be useful if you want added flexibility and peace of mind—especially when travel conditions feel uncertain.

However, it’s not a blanket safety net.

You’ll still need to consider:

• Payout limits
• Exclusions
• Timing requirements
• Whether the extra cost fits your budget

Where can I buy Cancel for Any Reason cover?

Cover-more offers Cancel For Any Reason policies. You can purchase this as an add-on to your existing policy over the phone. Alternatively, this can often be purchased through a travel agent such as Helloworld. Also purchased through travel agents, Go Insurance also offers CFAR.

You may also be able to purchase CFAR direct with your airline during the booking process.

Virgin Australia: During the purchase path you can add Cancel For Any Reason cover with Economy Lite and Choice fares for selected flights. If your flight is eligible you can select 80% or 100% refund of your airfare for an additional premium. Learm more about Virgin Australia CFAR

Qantas: Qantas allows free cancellation within 24 hours of booking for Qantas Frequent Flyers (or those joining) for flights booked directly, providing a full refund. Outside this window, Qantas offers an optional "Cancel For Any Reason" (CFAR) add-on for a fee, providing a 70% refund of the total booking cost. Learn more about Qantas CFAR

The bottom line

Cancel for Any Reason cover can give you more control over your travel plans, but it doesn’t cover everything, and it won’t bypass major exclusions or government warnings.

Before purchasing a policy:

• Read the Product Disclosure Statement (PDS) carefully
• Check what percentage of your costs you can claim back
• Confirm all destinations (including stopovers) are included
• Compare policies to see what’s actually offered

A bit of research upfront can make a big difference if your plans change later.