If you have never taken out pet insurance before, you may think it provides cover against expensive vets bills. But today's policies can cover much more than that so it's worth examing the differtent policies on offer to make sure you are getting the best for your money. Modern pet insurance policies now also cover against the pet causing damage accidentally, funding advertising and a reward to help find a lost pet, boarding fees if the owner has to go into hospital and holiday cancellation charges due to the loss or injury of a pet.

In addition to these additional benefits, policies also carry certain exclusions which can include things like flea control and spaying. Also certain pets may not be eligible for cover - these include racing dogs and working animals, although special cover can sometimes be arranged in these cases.

It is possible to take out insurance to cover you taking your pet abroad.

To give you an idea of typical vets fees here are a few examples:

• Cat - broken leg - £1000
• Dog - kidney infection - £400
• Dog - 1 years cancer treatment - £2500
• Dog - cateracts - £1500

Many policies place an upper limit on the maximum payout in any one year - £3500 is typical - but some providers will cover up to £6000 or higher.

Although pet insurance is becoming more common there are still over 1 million domestic cats and dogs in the UK that remain uninsured.