As the 2025 US government shutdown continues, travelers across the country are looking for ways to safeguard their travel plans from disruptions. One notable trend has been a significant increase in the purchase of Cancel for Any Reason (CFAR) travel insurance, as more people seek flexible options in the face of ongoing uncertainty.
According to data from InsureMyTrip, in September 2025, ten percent of all travel insurance policies included CFAR coverage—the highest rate seen this year. This reflects the growing demand for adaptable protection as shutdown-related disruptions impact trips to popular destinations in the United States.
What is Cancel for Any Reason (CFAR) Insurance?
CFAR insurance offers broader cancellation rights than traditional travel insurance by allowing travelers to cancel their trips for nearly any reason, even those not covered under standard policies, such as illness or accidents.
This optional upgrade provides travelers with the flexibility to cancel their trip and recover between 50% and 75% of their non-refundable prepaid costs, as long as the cancellation occurs at least 48 hours before the scheduled departure.
Why CFAR Matters During a Government Shutdown
Government shutdowns are typically not covered under regular travel insurance plans. However, CFAR coverage acts as a crucial safety net for travelers facing potential disruptions due to federal office closures, park shutdowns, or other uncertainty tied to the ongoing government crisis. As travelers prioritize flexibility and peace of mind, CFAR coverage has become a go-to option for those looking to protect their investments during these turbulent times.
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