In most countries, such as the UK, the insurance companies do impose certain rules and regulations upon making modifications in the car. In case you make any modification without keeping the insurance company in a loop, then the insurance might get void. Any modification, apart from the standard specification, gives your vehicle a different stature. The motive of an insurance company is to keep track of all of the parts that feature in your vehicle. It is to ensure that whether those parts will be liable for replacement or not at the time of an insurance claim.
The private registration plates are also accountable for modification upon vehicles, and the insurers demand an update for the same. Therefore, it is important that you should know about how a private registration plate affects the insurance of your vehicle and why you should update it to the respective company!
Keep the Insurer in Loop with your Registration Plate Modification!
Before you go ahead and get an idea of how the private registration plates affect the insurance of that vehicle, it is important for you to get an idea of why you should keep your insurer in a loop for this small modification. In most cases, people who take up the private registration plates prefer to do it after a year or two of buying the new car. It is a matter of choice and interest! But, with the change of numbers, the vehicle identity is also shifted to a different combination. Therefore, the insurance companies should know about it to ensure that they are implementing the insurance documentations upon the same car.
If you are getting the private numbers and the private registration plates right from the showroom, then it is the duty of the automobile dealership to pass on this update to the insurance firm. But in some cases, people continue with the number they have received on their standard registration but intend to change the design or style of the registration plate. In this scenario, it is also called opting for a private registration plate, but without changing the number. In such cases, you do not need to inform the insurer about the same. Adding just a fancy look to your number plate doesn’t make you liable to inform your insurer. But in case you are changing the numbers by any means, or taking a NOC for re-registration of the vehicle, keep your insurer in the loop!
The insurance rules might vary depending upon the countries and states. It also varies from firm to firm! Therefore, it is better to check the insurance policy in brief if you have an intention to take up private registration plates for your vehicle, with a unique number!
No Change on Premium For Taking A Private Number
If you are upgrading to private registration plates, then your insurer won’t demand you an additional premium for the same. The registration number, whether private or standard, is a significant identity of your vehicle. And you need to keep it updated, only for the sake of giving an insight to the insurance firm about the vehicle they are covering. There is no such law under which an insurance company can charge you an additional premium for upgrading to private registration plates.
But yes, at the time of updating the registration number at the insurance firm, you might have to pay a one-time fee for the same. It is just the service cost for updating the policy within their insurance management system. The charge is not fixed, as it varies depending upon the insurance firm, their competitor rates, region, and other such factors. But one thing is evident that you won’t have to pay a hefty amount for it! The reason why the insurance companies won’t charge you a high premium is that you are not making performance modifications to your vehicle. It is just a private number plate, and they are allowed to charge only a reasonable ‘admin fee,’ for one time, without any other charges. You can go to higher authorities in case you feel like they are charging you too much for the sake of changing the standard number to a private registration plate. Your premium should cover it, as it is, without any increase!
So, as of now, you must have understood that informing the insurers about upgrading to private registration plates is important. But, you do not have to worry about paying anything extra to the insurance company in the process! In case you are not declaring the change to the insurer, it might lead to insurance void and will eventually make it difficult for you to take insurance in the future! The companies will demand more premiums, which is avoidable if you don’t keep your present insurance firm updated!