New License Plates Won’t Affect Auto Insurance Prices Despite ‘Common Misconception’
The insurance specialist said it was a “common myth” that installing new personalized plates can be seen as a modification and make premiums more expensive. However, they confirmed that “it is not” and that policies should not be affected by simply securing a new design.
Drivers are cautioned that they must notify their insurer if they change their license plate or opt for a custom design.
However, this will not affect the insurance costs and will not result in the cancellation of the agreements.
Loren Gould, Cuvva’s marketing director, said it was a “common misconception” and urged road users not to be put off.
She said: “There are a lot of misconceptions about auto insurance like increasing private license plate premiums or third party insurance which is the cheapest when in fact it can often be more expensive than car insurance. ‘Back to back insurance.”
READ MORE: DVLA bans license plates referring to coronavirus
Experts at Compare the Market agreed that custom designs could make the car ‘stand out from criminals’, but said vehicles 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 may make the car stand out from criminals, this distinctive license plate is easier to trace if it is stolen, so there are arguments on both sides.
“We cannot speak for each insurer, but generally speaking, a personalized plate is not considered an amendment.
“So your car is probably less likely to be stolen, but if it is, it is also more likely to be recovered. “
The new 2021 plates are expected to be extremely popular with road users looking for something different for their cars.
Data from the DVLA shows that the number of drivers purchasing personalized license plates increased by a third last year.
Sales of personalized plaques have more than doubled over the past decade.