Insurance premiums for most motorists could fall as driving records go online. Moving all driving records online could reduce the cost of car insurance for most people, say ministers.
The migration, which will be complete by mid-2015, will end the need for the “paper counterpart” document drivers have to keep with their licence. At the moment, insurers cannot check licence or traffic offence details when they sell policies, meaning they have to “price in” a risk factor.
The Association of British Insurers says premiums are pushed up by the fact that firms have to take account of the risk that drivers either do not tell the truth about speeding points to get a lower quote, or simply make a mistake. Most drivers would struggle to find the official document we are meant to keep with our driving licence. But from the middle of 2015 we will not need to. All the information on it – such as speeding points and endorsements – will be available online.
A system due to be launched by the Driver and Vehicle Licensing Agency (DVLA) will allow insurers to access the information using an individual’s licence number. The paper counterpart to the driving licence photo card is due to be phased out by 2015 while it was announced in December that paper car tax discs would also be scrapped.
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