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Does A Private Number Plate Increase Insurance?

While private plates can add to the value of your car, in the eyes of insurers, it won’t affect your car’s worth when it comes to cover. There are, however, some steps you need to take regarding insurance to make sure you’re legal on the road and protected in the event that your vehicle is stolen.

Many modifications to your car can cause a price hike in your insurance, including tinted windows and additional lights, along with a number of extras like flared wings, spoilers, valances, side skirts and wheel arches. However, changing your number plate to a personalised one isn’t on the list.

If you’ve been wondering ‘does a private number plate increase insurance payments on your car?’, then read on for some insightful information that will safeguard you from paying unnecessary penalties.

Informing your car insurance provider of a change in registration

When you assign a new number plate to your car, you must inform your insurance provider as soon as possible or you may face problems proving you’re fully insured. Without correct insurance in place on your car, you can face heavy fines from the authorities.

Most car insurers don’t consider a new private number plate to be a vehicle modification, but every provider has their own rules so it’s worth making sure of this when you inform them of the plate change.

At this point, it’s also a wise idea to acquire a letter from your provider that states it has no interest in your private number plate.

Why would I require this letter?

If a vehicle is stolen with the registration along with it, after reporting the theft to the authorities, your next step will be to make a claim on your car insurance. After your claim has been processed, you’ll receive your settlement payment. This lump sum effectively means that your car insurance provider has bought the vehicle from you and therefore owns it entirely, including the registration plate.

If the car is recovered, your insurance provider has the right to retain it along with each part of it, and this includes your number plates.

Ordinarily this wouldn’t be a concern. If your car retained the original number plate it arrived with, you’re unlikely to feel you have an emotional or financial interest in getting it back. However, if you’ve invested in a private number plate, this presents a very different scenario.

If your vehicle is stolen with a private plate attached, you’ll make your claim and receive your payout. However, if your car is recovered, you’ll want to attempt to get your private number plates back, but technically your car insurer will own your personalised registration.

They may agree to sell the private number plate back to you, but they are not required to do so. A far better approach is to put your own insurance policy in place to prepare for this potential unfortunate circumstance by simply getting a letter confirming they have no interest in your private number plate.

Can car insurance be made less expensive by adding a private number plate?

It might seem probable that a private plate would be of more interest to a car thief than a regular plate based on the cost of acquiring one, but they’re also easier to identify and therefore simpler to track. This means that not only might your car be less likely to be taken, but it’s also more likely that if stolen, it will be recovered. There is therefore a chance that buying a private car registration can save you money on your insurance.

Other related FAQs

Looking for more related content to this? We’ve picked a selection of related topics that you may find helpful

Personalised number plates can be a good investment as they nearly always retain their value and often increase in price. Investing in these plates is not risk free though, so it shouldn’t be undertaken without careful research.

Creating your own personalised number plate is relatively simple, and many websites are designed to make this process easier. However, there are some rules about what you can and can’t choose for your registration number.

Guernsey number plates are issued sequentially and differ to those in mainland UK. They consist solely of numerals, featuring an oval showing the characters “GBG”. Along with standard white and yellow plates, they can display silver characters on black.

A simple transfer from one vehicle to another can be completed online with the DVLA and you can make the switch as soon as you've finished the process. Organising it by post takes longer – expect two to five weeks.

To find out the registered keeper of a vehicle number plate here in the UK, apply in writing to the Driver and Vehicle Licensing Agency (DVLA). However, it will only provide these details if you have a reasonable cause.

You must inform the DVLA if you wish to remove your personalised number plate and replace it with the car’s original plate. It costs £80 to remove personalised plates and this can be done online or by post.

You can discover certain information about the vehicle that a number plate is on fairly simply, but to find out who it actually belongs to is a little more tricky. Your best port of call is the DVLA.

Having an illuminated number plate is a legal requirement, so it's important that you replace your number plate bulb if it fails. This a simple process which anyone can complete, and replacement bulbs are readily available in shops and online.

Much like a personalised or cherished number plate in any other part of the UK, all personalised number plates in Northern Ireland must be registered with the DVLA in Swansea. This system has been in place since 2014.

A number plate’s value varies according to how desirable and unusual it is. A number plate featuring a name, word or initials that a lot of people want is likely to fetch a higher price.