New 2021 number plates will not affect car insurance costs despite ‘common misconception’

DVLA number plate sells for over £25,000 at auction

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The insurance specialist said it was a “common myth” installing new personalised plates can be viewed as a modification and make premiums more expensive. However, they confirmed this “isn’t the case” and policies should not be affected by simply securing a new design.

Drivers are warned they must inform their insurer if they change their number plate or opt for a personalised design.

However, this will not affect insurance costs and will not lead to agreements being invalidated.

Loren Gould, marketing director at Cuvva said this was a “commonly held misconception” and urged road users not to be put off.

She said: “There are a lot of commonly held misconceptions about car insurance like private plates increase premiums or third-party insurance is the cheapest when in fact it can often be more expensive than comprehensive insurance.”

She added: “Misconceptions can be particularly detrimental to younger drivers who already face exceptionally high premiums.”

Cuvva has confirmed most car insurance providers do not class personalised number plates as a modification and are unlikely to increase prices.

However, number plate specialists at Primo Registrations says some firms will still “try and put up” their costs

Some providers may claim the private plates make them more desirable to criminals and therefore more likely to become the target of crime.

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Experts at Compare the Market agreed personalised designs might make the car “stand out to criminals” but said vehicles fitted with unique designs would be “easier to trace”

Unique plates are easier for police to spot meaning cars could become easier to trace, deterring criminals from approaching vehicles.

They said: “While it might make the car stand out to criminals, that distinctive number plate is easier to trace if it does get stolen, so there are arguments on both sides.

“We can’t speak for every insurance provider but, generally speaking, a personalised plate isn’t viewed as a modification.

“This does vary though, so it’s worth checking with your insurance provider before buying a new custom registration.”

Experts at insurance firm Mustard also claimed stolen cars with personalised plates were “more likely to be recovered”.

They said: “It seems logical that a personalised number plate would be more desirable to a thief because of how expensive private licence plates are.

“But a plate that’s easily identifiable is easier to track.

“So your car is probably less likely to be stolen but if it is, it’s also more likely to be recovered.”

The new 2021 plates are expected to be hugely popular among road users looking for something different for their cars.

Data from the DVLA shows the number of drivers buying personalised number plates increased by a third last year.

Sales of personalised plates have more than doubled over the last decade.

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