Holidaymakers may like to know that Virgin Money has launched a new variety of travel insurance deals to meet the needs of families, backpackers and over 65's.

The policies offer free insurance cover up to three under 18-year-olds per insured adult. For example, six children and two adults will be covered for the price of just two adults.

The deals also cover winter sports holidays providing cover for over 40 adventure sports under its standard package.

The package deals also include up to £400 cover for backpackers under the age of 35 in the case of being mugged while travelling.

Scott Mowbray, spokesperson for Virgin Money Travel Insurance said: "Whether you're skiing in Switzerland, backpacking Down Under or sunning yourself in Spain we have the right cover to suit your travel budget and circumstances."

The firm also pointed out the importance of travel insurance especially during the recession.

The spokesperson added: "In this tough economic climate holidaymakers may think they can do without travel insurance as they deem it non-essential and try to cut costs. This is a mistake and with single trip cover starting from as little as £4.40 and annual trip from £34.51 it is as important as your passport for peace of mind."