Private Number Plates With Insurance

How can a private number plate affect insurance costs?

A private or personalised number plate will add a little extra to the appeal of your car. A standard number plate may bore you and you feel that a plate with more personalisation would better reflect your vehicle. If you want to use a private number plate that matches your brand, it will be your first marketing tool when you travel. If you’re considering a private number plate, you should consider the insurance implications.

You will also need to notify your insurers of the new number. You could end up in a nightmare situation if you don’t do this and you have to prove that the vehicle was insured in case it gets stolen or is involved in an accident. Theoretically, most insurers won’t consider a change of private registration to be a modification and you shouldn’t see any difference in your car insurance rates. Theoretically! You should check with your insurance company, however, because each one will work differently and hidden costs are always a possibility.

Do I have to pay more for my car insurance?

As a change in registration numbers is not considered a modification but merely a way to identify a vehicle, your insurance should not be affected. This is not a set policy and can vary from one industry to another. You should speak with your insurance company about the change in number so that you don’t get any unpleasant surprises. Some insurers might feel that a personalized number plate makes the vehicle more attractive to thieves, and may reflect this in their premium. Other companies, on the other hand, may feel that a personalised number plate makes the vehicle less appealing to thieves because it is more distinct and easier to track. Consult your insurance company to find out their approach.

It is possible that there are similar differences between insurance companies in the administrative side of the registration number change. Some companies charge an administrative fee even though you cannot imagine that changing a single line of data in a computer system could take so long. Some companies may charge an admin fee for the extra work they do. In 2017, around PS11m was spent on private registration numbers.

Check your existing policy

The cost to change to a private number plate can be quite high. Some people will pay thousands of pounds for their dream number plate. It is important to consider the impact that a personalised plate could have on your insurance rates, and not just whether it will increase the cost. When a claim for the value of the car is filed, the insurance company may take ownership of both the vehicle and registration plate.

There are few policies that cover the loss or damage of a personalized plate, and the coverage may differ. Informing your insurer immediately after changing to a private number will help you get back your personal number in the event that the vehicle is written off or stolen. Number plates are not assigned to individuals but to vehicles. They can therefore be lost if the vehicle is stolen, or scrapped. You can ask the insurers to provide a letter stating that they have no interest in the license plate. This will allow you to reclaim your registration. As a precaution, you may want to ask the insurers for a letter of no-interest when you first inform them of your new private registration.

Private registrations have become popular and easy to use. DVLA must be notified immediately if you decide to change your registration, regardless of the reason or where you purchased it. At the same time, you should inform your insurance company. Insurance companies may charge more for a private registration, even though it is not the norm. You may want to speak to your insurance company before purchasing your new number plate to make sure you understand the implications for your car’s insurance and how to retain your registration if you have an accident. Knowing in advance will help you avoid unnecessary fees and headaches.