Does Having A Private Number Plate Increase Insurance?

We all know that car insurance isn’t cheap, especially if you are a first-time driver, or have 0 years no claims. More often than not, it isn’t the vehicle that people struggle to afford, but the insurance, as it can cost a few thousand if you aren’t an experienced driver. 

There are several other factors that determine the price of your insurance, such as your postcode, the vehicle you drive and how often you drive. But, can having a private number plate affect the cost of your insurance? In this article, you’ll find out everything you need to know when it comes to your insurance and having a private number plate. 

Will the price of your insurance increase? 

Although there are many things that can have an effect on the price of your insurance, having a private number plate shouldn’t be one of them. Different insurance firms have different rules; however, the majority will not charge you for changing to a private plate. 

One thing that usually does waiver the cost of your insurance is a ‘vehicle modification’ and having a private number plate attached to your vehicle isn’t a modification. As a result, most insurers won’t charge you for this change, however to be certain you should contact your insurance company when making the changes. 

That being said, if your insurance policy does not cover a personalised number plate, and you fail to tell them about the changes, your car insurance may be void, and you could be liable to: 

  • A £100 fixed penalty 
  • Potentially face court prosecution and a fine of £1000 
  • Your vehicle may be destroyed, clamped or impounded 

Asking your insurance company for a ‘letter of no interest’ 

One of the most important things you must remember if you have a private number plate is to ask your insurance company for a letter of no interest. This is a letter from your insurance company that confirms they have no interest in your number plate which may be vital if your vehicle is stolen in the future. 

When your vehicle is stolen, more often than not your insurance company will pay you a lump sum in return, but this also means they own the vehicle and everything that comes with it, including the number plate. If you have a private number plate and it holds sentimental value, then this can be quite upsetting as the insurance company have a right to keep the plate. In the same circumstance, if your number plate is worth a lot of money, the insurance company will probably want to keep it to sell on. They can offer to sell it back to you, however they are not obliged. 

By having the insurance company write a ‘letter of no interest’, it stops circumstances like these happening and you will be able to get your private number plate back without difficulty from the insurer. 

Overall, a private number plate usually has very little impact on the cost of your insurance. There are several other factors that are more important, such as the address the vehicle is parked at and how often it is used on the road. 

However, if you are unsure, you should get in touch with your insurance company to double check your policy. On top of this, it is vital that you request a ‘letter of interest’ to ensure you keep your plate after an accident or theft.