Do insurance companies charge for change of number plate?

In the UK, it is a well-known fact that you need to consider the cost of your insurance when it comes to buying a vehicle as this can be a hefty additional cost. There are several things that can affect the price of your insurance, from what car you drive, how long you have been driving and even where you live. But, did you know that having a private number plate will also have an impact on the cost of your insurance?

When it comes to purchasing a private number plate, once you have assigned it to a vehicle, it is necessary to inform the DVLA and insurance company that the plate has been put onto your vehicle. Otherwise, if your vehicle is involved in an accident, or theft, the insurance may be void if the number plate is incorrect.

Can a private plate increase your insurance?

Having a private number plate isn’t classed as a ‘vehicle modification’ therefore most insurers won’t charge you for having one. However, like most things, it is important to double check just in-case. You should contact your insurance provider to find out what is and isn’t covered on your policy, otherwise your policy might be void and you could face one of the possible outcomes:

-A £100 fixed penalty

-Receive a maximum fine of £1000, with court prosecution

-Your vehicle may be clamped or destroyed

All of these things can cost you a large sum of money, therefore it will save you a penny or two by contacting your insurer when you have your new private plate fitted to ensure you don’t have to pay these avoidable costs.

Asking your insurer for a ‘letter of no interest’

If your private number plate holds a certain amount of sentiment or value to it then it is essential that you ask your insurer for a letter of no interest. This is written proof, confirmed by your insurer that they have no interest in the number plate, and if your vehicle is stolen, the plate will be returned back to you.

If you do not receive one of these, the insurance company may pay out a lump sum to you if your vehicle is stolen, meaning that they own the vehicle and everything that comes with it. They may offer to sell the plate back to you, but they are not obliged to, and if your plate is worth something then they will probably want to keep it to make a profit themselves.

If you know your number plate is popular, and you’re looking to eventually sell it to make money then you must request one of these letters. Otherwise, the insurance company will take the plate as they know it has value.

How does the number plate affect your insurance?

Always check with your insurance company in-case of any discrepancies, however your private number plate shouldn’t affect your insurance and you should not have to pay any extras having it fitted onto your vehicle.

There are several other factors that will have a much larger impact on the price of your insurance, such as, what car you drive and how often you drive it. That being said, it is still essential that you inform your insurance company of any number plate changes to avoid any further penalties.

About

Karl is the editor and owner of this glorious website. He currently writes for numerous environmental websites, producing content for the greater good. His experience in graphic design, Wordpress and all things automotive have helped sculpt Hypermiler.co.uk into its current form from very humble beginnings. He has numerous IT qualifications, a red belt in Taekwondo and likes craft Ales. Get in touch via our Contact Page

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