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British holidaymakers have been urged to consider the importance of insurance following a survey which found that just under a quarter (24%) of people are planning to go abroad without cover this year.

Research by American Express found that some 14.5m people are planning to cut back on travel insurance to save money as the credit crunch continues to worsen.

The findings came from a study looking at the methods consumers are considering to aid their finances, which discovered that nearly half (48%) of people are thinking about cutting corners on financial safeguards.

Chris Rolland of American Express said that the tight economic situation makes travel insurance more important than ever.

'Should something happen, the current economic market means that the last thing Brits need now is an unexpected bill,' he said.

The financial climate is having a damaging effect on the travel industry, with XL Leisure and Zoom Airlines already having folded under the weight of the economic problems.

Alitalia is the latest company in trouble. Italy's national airline is facing possible liquidation following the failure of a rescue bid by a consortium of companies.

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