Why CFAR Is Common Overseas but Rare in Australia

In Australia, travel insurance products are generally more tightly defined and regulated through Product Disclosure Statements (PDS). This means insurers clearly specify what is and is not covered, rather than offering broad, open‑ended cancellation options.

As a result, Australian travellers often discover that CFAR simply isn’t available locally—and instead must look at enhanced cancellation add‑ons, like Cancellation Plus, to gain extra flexibility.

What Is Cancellation Plus Cover?

Cancellation Plus is an optional add‑on available with Comprehensive and Comprehensive+ plans. It extends cancellation cover to include certain situations that are not normally covered under standard travel insurance.

Examples of cancellation reasons that may be considered under Cancellation Plus include:

• Unapproved work leave
• Changes to employment
• Relationship breakdowns
• Travel anxiety or a change of mind

This makes Cancellation Plus a useful option for travellers whose plans may change for personal or lifestyle reasons, rather than medical emergencies alone.

Eligibility Requirements for Cancellation Plus

To be eligible for Cancellation Plus Cover, the following conditions must be met:

• The add‑on must be purchased at the same time as the travel insurance policy
• The trip must be cancelled at least 48 hours before departure
• The cover applies only to travel costs that were:
  • Paid within 48 hours before purchasing the policy, or
  • Paid after the policy was issued
• The policy must be purchased more than 7 days before the trip start date

If these conditions aren’t met, Cancellation Plus benefits will not apply.

How Cancellation Plus Works Compared to Standard Cover

Without Cancellation Plus

Standard cancellation cover generally excludes claims related to financial circumstances, such as unexpected financial strain at home. These situations are not typically covered under standard policies.

With Cancellation Plus

If Cancellation Plus is added, the level of reimbursement depends on the plan selected:

Comprehensive Plan

• Claim up to 50% of either:
  • The non‑refundable, unused portion of prepaid travel costs, or
  • The selected Cancellation Cover sum insured
    (whichever is less)

Comprehensive Plus Plan

• Claim up to 75% of either:
  • The non‑refundable, unused portion of prepaid travel costs, or
  • The selected Cancellation Cover sum insured
    (whichever is less)

This provides partial reimbursement, not a full refund.

Important Limitations to Be Aware Of

• Cancellation Plus cannot be added later — it must be selected when the policy is purchased
• The policy must be purchased at least 7 days before travel begins
• Cancellation Plus is not the same as CFAR and does not allow full reimbursement for any reason

Final Thoughts: Is Cancellation Plus the Australian Alternative to CFAR?

While Cancellation Plus isn’t a true Cancel For Any Reason product, it currently represents one of the closest options available in Australia for travellers seeking more flexibility than standard cancellation cover provides.

For travellers used to seeing CFAR options overseas—particularly in the USA—this difference can be surprising. Understanding how Australian travel insurance works, and what add‑ons are available, is key to choosing the right level of protection.

As always, travellers should read the Product Disclosure Statement (PDS) carefully to ensure the cover aligns with their expectations and circumstances.

*THIS INFORMATION WAS TAKEN FROM COVERMORE INSURANCE AUSTRALIA FOR MORE DETAILS VISIT THE WEBSITE