Debunking myths – March number plate changes

From the 1st March, new cars sold across England, Scotland and Wales will come with new number plates. Figuring out what all the numbers and letters mean, and what exactly is changing this spring can be very confusing. Leading flexible temporary car insurance provider, Cuvva shares everything you need to know about the licence plate changes at the start of next month and how it might affect you.

The changes will impact the first two numbers on the licence plate, known as the age identifiers. As we enter a new six-month period, the numbers will switch from 72 to 23 followed by 73 in September. The rest of the numbers and letters will be assigned as usual, with the first few letters indicating the region, while the end of the number plate is randomly generated and serves as the unique identifier for the car.

There are several number plate rules to follow, including specific fonts, font sizes, colours, and placements. You could be fined up to £1,000 and your car will fail its MOT if you don’t display your number plate correctly.

Demystifying number plate myths

It’s a known myth that a car’s number plate alone determines its price. While it’s not strictly true, it does show the car’s age, which affects its value.

Number plates quickly let anyone know roughly how old a car is. A buyer will know a car with a number plate starting with 22, 72 or 23 is fairly new.

Darryl Bowman from Cuvva said, “While they do indicate the age of the car, it’s a common misconception that number plate changes decrease the value of a car. If you’re looking to sell your car soon, and want the best price possible, it’s best to sell before the new plates come out. And if you want to grab a bargain for a nearly-new car, buying a car that’s registered one plate back might be a good idea.

“There are ways to lower the depreciation of a car, including regular servicing, MOT checks, choosing a popular model and reducing your driving time to keep mileage low.”

As the value of a car depreciates year-on-year, newer cars are naturally more expensive, while cars that are a few years old usually become cheaper. The value of brand-new cars typically drops by 10% when they leave the dealership and by another 10-20% before the first year has passed. By the third year the average car will have lost around 60% of its value before depreciation levels out.
Do number plates affect your car insurance premium?

Number plates don’t directly impact your car premium, but older and newer cars, as indicated by the age identifier, are valued differently.

Bowman explains: “As cars lose value as they age, older cars are typically cheaper to insure as the potential insurance payout would be lower than a new car, if a claim was made. Although it’s not the case for classic cars.”

When it comes to personalised number plates, some insurance policies don’t cover personalised plates because they are more at risk to possible theft, especially if the plates are funny or notable.

Before purchasing a private number plate, check with your insurer that you are fully covered and won’t be affected if you need to make a claim.