Backpacker travel insurance could offer protection from recession

People booking trips abroad could find peace of mind by buying cheap travel insurance as part of their travel plans.

The Association of British Travel Agents (Abta) has warned that Britons should be careful to protect any holidays they choose to book, considering the current economic turmoil.

Unemployment has risen in recent months and so travellers should make sure that they are not at risk of losing their money if something happens before they take their trip.

Steve Barnes, corporate marketing manager at Abta, said: "Of course most holiday insurance covers redundancy, so you should be able to get your deposit back, but people should always be careful when they book a holiday."

He added that paying for travel costs on a credit card offers good protection for sums over £100 and travellers should ensure they book their trip with a reputable agent. Online travel insurance could be a good option for people heading overseas.

Around 146,000 people lost their jobs over the last quarter, according to the Office for National Statistics.

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