Does Having A Private Number Plate Affect Your Insurance?


One question many people have before purchasing a private number plate is whether or not it is likely to make your insurance premiums skyrocket. This is because it is common knowledge that car insurance companies aren’t fans of most car modifications and can sometimes even invalidate your insurance if they deem the modification to be dangerous.

Fortunately, in most cases a new private registration plate won’t cause your premium to increase. Some sneaky insurers may attempt to put it up, claiming the plate makes the car more desirable and therefore worth more money, however, other insurers may do the opposite and find that a personalised plate makes your car stand out more, therefore making it easier to identify in the event of a theft, for example, though this doesn’t necessarily mean you’ll receive a reduction.

In the unlikely event that your insurance provider does actually try to up the cost of your policy as a result of your new private plate, it is well worth challenging the fee. This is because by replacing your existing registration number with a new one, you are in no way modifying or increasing the performance of your car in any way.

It’s worth noting, however, that as with almost any change to your vehicle insurance policy, your insurer will likely charge an admin fee to cover the cost of updating your policy on their system. The cost of the fee and whether or not they charge one largely depends on the individual insurance provider but if you feel you are being charged an unreasonable amount, you should take it to the Financial Ombudsman Service.

Do I Have to Declare My New Private Plate?

Yes. It is absolutely vital that you declare the change to your insurance company as failing to do so will most likely result in you car insurance becoming invalidated and will make it more difficult and expensive to get car insurance in the future. 

How Can I Make Sure My Private Plate is Insured Too?

Whilst your car insurance shouldn’t increase due to a private plate, you might wish to double check that your premium covers them. If your car has been stolen and you’ve spent thousands on a customised plate, you’re going to want to make sure you don’t lose that too.

Although many insurers don’t offer this type of cover, there is certainly no harm in asking and you’re far more likely to receive it if you’re a loyal customer. Otherwise, you may want to pay slightly more for coverage.

Thinking about buying a private plate? Search and find your perfect plate from thousands being advertised directly by their owners with Plate Trader.

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