How do personalised number plates affect your insurance and is your reg number at risk?

BRITS splashing out on pricey personalised number plates are being warned over insurance complications.

In 2017, drivers spent £111million on private registrations but their prize possessions could be at risk if cars are stolen or written off.

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How do personalised number plates affect your insurance?

You need to tell an insurer if you add a personalised plate to your motor to avoid invalidating your cover.

GoCompare revealed out of 302 comprehensive car insurance policies just 19 specifically cover loss of a personalised plate.

And cover ranges from just £200 to unlimited with 16 of the insurers covering £5,000 or more.

But the comparison site revealed in the case of a write off if a claim is made for the entire cost of a car, the insurer will own the motor and the number plate registered with it.

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It means you’ll have to buy back the plate back off the insurer – with the fee capped at the settlement price.

If the insurer has already ditched the car you’ll have to track down the motor to recover the plate.

You then need to organise for it to be transferred to another vehicle or retained on a certificate in sufficient time before the claim is settled.

Registration numbers move with the vehicle they are assigned to, not the person who bought it.

Is your reg number at risk?

So, if the vehicle is written off and the car scrapped – the number plate can disappear with it.

If a car with a personalised plate is stolen and not recovered, its owner will have to wait 12 months to get the number plate back.

The policyholder will need to contact the DVLA and their insurer to let them know that they want to keep the plate. They will also have to prove that the car had a valid MOT and tax at the time of theft.

You’ll then have to pay a retention fee to keep the plate if they don’t have another vehicle to transfer it to.

Plates can range in value from £250 right the way up to the record £518,480 paid for 25 0. Last year the biggest seller was JSK 1 which went for £56,200.

And “TAX 1” is currently up for sale with price estimates of £100,000 by auctioneers.

What are you advised to do?

Matt Oliver from GoCompare Car Insurance commented: “In recent years personalised number plates have become increasingly popular with drivers of new and second-hand cars.

“When you register a personalised plate to a vehicle you need to tell your insurer immediately, otherwise your policy could be invalidated and, particularly if you’ve paid a lot for a registration number, you should consider whether it’s properly insured.

“A registration number is attached to the vehicle it is assigned to, not the person who purchased it.

“So, if you want to retain ownership of a cherished number plate you need to make sure your insurer knows, in the event of the car being stolen or written-off, you want to keep it.”