Travel insurance marketplace Squaremouth, which found travelers are spending nearly $10,000 on average on their trips this summer, has identified the factors influencing travel insurance policy prices to highlight how much goes into protecting those expensive vacations.

According to Squaremouth, a comprehensive travel insurance policy ranges from 5% to 10% of the total trip expenses. This plan covers cancellations, medical emergencies, delays, and baggage issues, among other things. If travelers choose not to insure the cost of the trip, the premium will be much lower, as the policy will exclude cancellation coverage.

This summer, the average cost of a comprehensive travel insurance policy on Squaremouth.com is $595. For those who choose not to include cancellation coverage, the average cost drops to $93.

For context, here are average flight costs and insurance premiums per year as of 2019, based on data analyzed by Squaremouth:

Squaremouth went on to point out that travel insurance premiums vary based on several factors: the total cost of the trip, the age of the traveler, and the duration of the trip. Insurance buyers can choose to insure all, part, or none of the costs of their travel, including expenses such as airfare, hotels, tours, and excursions.

At the same time, insurance providers target different age groups and adjust premiums accordingly. Older travelers generally face higher premiums, Squaremouth said. Also, coverage typically extends from the time travelers leave their home until they return. Therefore, longer trips result in higher premiums.

Additionally, many insurance companies offer optional upgrades that improve coverage at a cost. Popular upgrades include “cancel for any reason” and rental car coverage, which can raise your premium by about 40%.

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