One in three pets has treatment each year

- Pet insurance quotes

Pets don't come cheap. The RSPCA estimates that the costs of owning a dog add up to an average of £700 a year, and serious illness can push that figure much higher.

Operations such as tumour removal or hip replacement will set a dog owner back between £1,000 and £5,000 in vets' fees. One in three pets require medical treatment each year and more than half a million cat and dog owners spend over £500 annually on vet fees. But only one in 10 animals is insured.

Insurance costs around £7 a month for dogs and £4 a month for cats, but varies depending on factors such as breed and location. More 'exotic' animals such as reptiles need specialist cover.

Standard policies cover vet charges as well as third party liability costs, for example if your dog bit someone. Look out for exclusions and clauses concerning long-term illnesses, an animal's age and claim frequency.

Regular pet care, such as vaccinations, worming, nail clipping or neutering, are not usually covered. Here is a 10 point check list for potential pet insurance buyers:

1. What's the excess payable on each claim?
Generally, you will pay the first £25 to £65 of each claim. For older pets this may rise to 35% of the value of the claim.

2. Will premiums rise after making a claim?
It's obviously in your interest for them not to, but this varies between insurers so shop around.

3. Are long-term illnesses covered?
Many policies only cover ongoing illnesses such as diabetes, arthritis and heart disease for up to 12 months and these are then excluded on renewal.

4. Is there a payout limit on vet costs?
Generally, policies cover up to £5,000 in fees. Check if the maximum is per annum or per claim.

5. What about third party cover?
If your dog has a tendency to bite postmen or run out into the street causing vehicles to crash, you should check this is included. Cover is generally for up to £2million.

6. Will compensation be paid if a pet dies?
Only if it's prematurely through illness or being run over (usually before the age of eight).

7. Will the pet remain insured as it gets older?
The usual maximum age at which cover can begin is eight. Also, some policies do not cover animals less six weeks old.

8. Are kennels/catteries and owner-emergencies covered?
Putting your pet in a kennel or a cattery if you are hospitalised or have to travel unexpectedly can be expensive. Check policy smallprint to see if such possibilities are covered. Pet illness causing expensive holiday cancellations may also be offered.

9. Does the breed of the pet matter?
Some insurers will charge more for breeds which they consider a higher risk - bigger or more delicate varieties for example. Others wonÂ’t so itÂ’s worth checking.

10. What about making a claim?
Verify the cost of treatment with your vet beforehand and check with the insurer that it will meet the claim.