CFAR and Flight travel Funds Question

[SuzieQ521]

 

Hello. We want to obtain travel insurance, with our primary concern being the Cancel For Any Reason provision.  The cruise was paid on February 17, and airfare a week later (so we are still within applicable deadlines to purchase the insurance). 

 

A portion of our airfare was paid with travel funds from Southwest issued well prior to the applicable deadlines.  An insurance professional told me that the use of travel funds to purchase the airfare technically took us out of the ability to purchase CFAR insurance (even though it was only $25.00 worth of flight funds).

 

Is this accurate? If accurate, can we simply cancel our flights and rebook without using travel funds? Has anyone dealt with this and have thoughts? 

 

Thank you.   

[klfrodo]

2 things

 

1) Southwest has a very generous cancellation policy. If you buy Business or Anytime tickets, they are fully refundable. If you buy WannaGetAway, you get a future travel voucher. So, why would you even insure these?

Flight Refund Policy | Southwest Airlines

2) If the airline offers a future travel voucher, most insurance companies will consider this as paid in full and not reimburse you.

Edited February 28, 2023 by klfrodo

[SuzieQ521]

29 minutes ago, klfrodo said:

2 things

 

1) Southwest has a very generous cancellation policy. If you buy Business or Anytime tickets, they are fully refundable. If you buy WannaGetAway, you get a future travel voucher. So, why would you even insure these?

Flight Refund Policy | Southwest Airlines

2) If the airline offers a future travel voucher, most insurance companies will consider this as paid in full and not reimburse you.

 

Thank you but Sorry let me clarify. 

 

We are not so much concerned with the SW tickets but rather the cost of our cruise fare ($4,600.00), plus excursions etc.

 

CFAR coverage requires us to insure every penny of our trip even SW tickets that get reimbursed as travel funds (from what we understand).

 

The insurance professional told us that just because we used $25 of airfare travel funds (obtained a year ago) to pay for part of our trip, that would take us out of  eligibility to purchase CFAR insurance now even though we only paid for our cruise last week on February 17th. 

 

That seems like a harsh policy if so.

[iamtrustworthy]

2 hours ago, SuzieQ521 said:

 

Hello. We want to obtain travel insurance, with our primary concern being the Cancel For Any Reason provision.  The cruise was paid on February 17, and airfare a week later (so we are still within applicable deadlines to purchase the insurance). 

 

A portion of our airfare was paid with travel funds from Southwest issued well prior to the applicable deadlines.  An insurance professional told me that the use of travel funds to purchase the airfare technically took us out of the ability to purchase CFAR insurance (even though it was only $25.00 worth of flight funds).

 

Is this accurate? If accurate, can we simply cancel our flights and rebook without using travel funds? Has anyone dealt with this and have thoughts? 

 

Thank you.   

Hi SuzyQ521,

 

You can't get the 75% CFAR because you are using Future Travel Credits. All the plans I know well, and a lot of the many companies I don’t offer, define your Initial Trip Deposit Date as the date you originally bought the trip that later something happened and caused the Travel Credits as the first payment.

 

I know one company that has a 50% CFAR that you can get.

 

Steve Dasseos

 

Edited February 28, 2023 by iamtrustworthy
typo

[SuzieQ521]

42 minutes ago, iamtrustworthy said:

Hi SuzyQ521,

 

You can't get the 75% CFAR because you are using Future Travel Credits. All the plans I know well, and a lot of the many companies I don’t offer, define your Initial Trip Deposit Date as the date you originally bought the trip that later something happened and caused the Travel Credits as the first payment.

 

I know one company that has a 50% CFAR that you can get.

 

Steve Dasseos

 

 

Thank you Steve...I appreciate it. Would you be able to share who the 50% CFAR company is?

 

It was just interesting to me: this old Southwest airline travel credit ($25 worth) is completely unrelated to our current cruise (a cruise that we 100% paid for last week on February 17th) that I would not expect it to affect any CFAR policy but I guess it does.

[iamtrustworthy]

56 minutes ago, SuzieQ521 said:

 

Thank you Steve...I appreciate it. Would you be able to share who the 50% CFAR company is?

 

It was just interesting to me: this old Southwest airline travel credit ($25 worth) is completely unrelated to our current cruise (a cruise that we 100% paid for last week on February 17th) that I would not expect it to affect any CFAR policy but I guess it does.

Hi SuzieQ521,

 

You're welcome. Email me at steve@tripinsurancestore.com and I'll send it to you. This company has some quirks I prefer to tell you about in an email.

 

Steve Dasseos