The study, commissioned by financial experts Forbes Advisor, also found that over half of owners admit they underestimated the cost of having a pet.
And with a record number of us welcoming a new four-legged friend into our homes over the pandemic plenty of new pet owners are facing up to unexpected expenses.
Medical costs are the number one expense, costing an average of £462.80 each year – even more than food, which sets owners back around £340 per annum.
Kevin Pratt, insurance expert at Forbes Advisor recommends owners consider insuring their pets to manage costs, explaining: “One thing any pet owner will tell you is that a trip to the vet - probably inevitable at some point - can be extremely expensive.
"This makes pet insurance such an important purchase. Having cover in place means animal lovers don’t have to worry about paying for the care their pet might need, and they won’t need to raid their savings or even go overdrawn to pay the vet’s bill.”
But pet insurance can vary hugely depending on the breed of dog or cat.
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5. Greater Swiss Mountain Dog
Greater Swiss Mountain Dog owners shell out an average of £588.22 to insure their pets for expensive vet visits - the fourth highest bill. Photo: Canva/Getty Images
6. Burmese Blue
Leading the pack when it comes to expensive cat insurance is the Burmese Blue - with an average annual bill of £337.14. Photo: Canva/Getty Images
7. Somali
Somali cat owners can expect to pay an average of £336.95 each year to cover their pet's insurance - the second most expensive breed. Photo: Canva/Getty Images
8. Egyptian Mau
With an annual insurance cost of £285.49, the Egyptian Mau policies are the fourth most expensive. Photo: Canva/Getty Images