British homeowners, holidaymakers and drivers were left in limbo last night as they waited to find out how they would be affected by the potential demise of American International Group (AIG), one of the world's largest insurers.

Fortunately for investors and policyholders alike, US central bank the Federal Reserve, stepped in overnight with an $85 billion (£48 billion) rescue package to save the insurance giant from bankruptcy. But what should you do if your insurance company goes bust and how exactly are you covered? Andy Leadbetter, head of insurance at moneysupermarket.com, takes a look..

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