As the economic downturn starts to bite, most people are looking to trim costs wherever they can. Of course, people still want to enjoy their holidays, but finding budget deals and cutting unnecessary holiday expenses has become more important then ever before. Naturally, this thrifty attitude extends to travel insurance.

It can seem like just another irritating expenditure, but comprehensive travel insurance is vital to keep you financially protected against unforeseen events. But there's no reason to pay any more than you have to – if you want to get the best deal on cheap travel insurance this year, just follow these steps…

Don't Skip It!

The easiest way to cut down on travel insurance costs would seem to be simple enough – don't buy it in the first place. But that's a potentially expensive gamble to take – cancellation costs, medical bills and the theft of valuables are very expensive mishaps if you are uninsured. If you know how to buy it on the cheap, travel insurance won't add much to the cost of your holiday, and it could well save you a tidy sum if something goes wrong.

Avoid Travel Agents

Travel agents and tour operators will often try and throw in travel insurance as part of your holiday package. It may seem convenient just to say yes and to get it done in a single go, but be careful – buying from a travel agent is usually far more expensive than getting your holiday insurance from a specialist provider.

Shop Around

Securing a bargain with your travel insurance is just like buying anything else – the trick is to shop around to make sure you are getting the best deal. Luckily, this isn't nearly as onerous as it used to be, as various price comparison sites can let you compare dozens of quotes in just a few minutes. Don't stick with one insurer out of habit – just because they gave you a good deal on one kind of holiday doesn't necessarily mean they can offer you the best deal on your next trip abroad. Make sure you check the market to be certain of getting the best deal on your holiday insurance.

Know What You Need

The more you pay for your travel insurance the more protection you get – very cheap travel insurance usually won't cover expensive personal items or risky activities. If you are going abroad to lie on a beach and are taking nothing more valuable then some clothes and toiletries, the cover you need is very basic, and you should make sure you aren't paying for unnecessary extras. Of course, if you are taking plenty of valuables with you, or are going to take part in some higher risk sports and activities, you need to be covered. Just make sure your travel insurance covers what you need, nothing more, nothing less.

Travel insurance has to be bought, but it doesn't have to break the bank. Follow these tips and shop carefully for your cheap travel insurance, and you could be amazed at the amount you could save on your next trip abroad.