Following Wednesday’s news that the UK government is introducing new measures to cut motoring costs, it has been announced that insurers will soon be able to view a driver’s DVLA record, giving them details of any pay convictions or penalty points accrued. The scheme has been developed by a number of motor industry organisations including the Association of British Insurers (ABI), the Motor Insurers’ Bureau, the DVLA and the Department for Transport.
The system, known as MyLicence, is expected to be put in place in the second quarter of 2014, after extensive testing. Using MyLicence insurance agencies will be able to cross-check disclosed information with that of the driver’s DVLA record – ensuring that fewer policies are made invalid, and that quotes are more accurate at the time of application.
ABI claims that around 23 per cent of motorists give inaccurate or incomplete details when requesting insurance – making any insurance claim more complex if and when they happen. Around 7 per cent of these were from drivers who have given the incorrect number of penalty points – meaning that some may be paying too much in insurance premiums.
The insurance industry argues that these cases are causing the average cost of insurance processes to rise, and it’s hoped that by tackling this issue insurance premiums will fall across the board for honest drivers. The trial period in February will help determine exactly how effective the new measure is likely to be, giving drivers a first glimpse at whether the system will improve premiums.