Personalised Number Plates and Insurance

Private number plates are becoming an increasingly common aspect of UK’s motoring experience. Last year alone, DVLA performed 374,968 private regs on vehicles in the country. However, while the majority of number plates are relatively cheap (typically in the few hundred pounds range), a small but significant number of them run into the four and five digit range.

Considering this, owners of expensive personalised number plates should take the time to familiarise themselves with their insurance obligation.

Declare the true value of your plates

The value of private plates can sometimes amount to a significant chunk of a car’s total insured value. This will naturally lead to higher premium rates on the part of vehicle owners. If you are thinking of saving some money by not declaring the actual value of the plate, please don’t. Failure to make a complete declaration of the value of your plates could lead to your policy being invalidated by the insurance company.

Furthermore, in the event of theft or write-offs (due to accidents), insurance companies will legally take possession of the vehicle before compensating policy holders. Since a number plate is tied to the vehicle and not the owner, the insurance company may unknowingly sell your vehicle, along with the expensive personalised plate, upon vehicle recovery. In such a scenario, not only will you lose the plate, but you will also not be compensated for your loss.

As you can see, paying true premium rates based on the actual value of your vehicle is a worthwhile expenditure indeed.

No compensation for the incompetent

Once the value of your personalised plate has been declared and the appropriate amount of premium paid, you can sleep peacefully at night knowing that even if your registration is stolen, you will be compensated for it.

Nevertheless, it is incredibly hard to steal registration marks as transferring ownership requires vehicle owners to present their V5C (log book), tax and MOT discs, and Statutory Off Road Notification (or SORN, where applicable). If a third party were to somehow obtain said items, DVLA will first send an alert letter to the registered owner. However, in the event the scam is pulled off successfully, and the number plates are then sold to an unsuspecting party, the insurance policy will ensure that actual owners are compensated accordingly.

Keep the insurance company updated of changes

In the event you are buying a new personalised plate, please contact the insurance company immediately so they may update their record and make changes to your existing policy, if required. This could result in higher premium rates. If you feel the rates are too high, please explore your options with competing insurance companies.