Insurers won’t need to rely on motorists telling the truth about previous convictions and penalty points.
From this summer, driving records for all motorists will go online. A new database will detail the motoring history all drivers, including motoring convictions and penalty points, and will be fully accessibly by insurers.
Insurers claim the online service will help cut the costs of insurance premiums by allowing them to check a policy holder’s motoring history directly and calculate an accurate premium, rather than one with a built-in cushion, in case of fibbing.
Some 23 per cent of data received by insurers is inaccurate, with about 16 per cent of policy holders ‘under-declaring’ convictions, according to the Association of British Insurers (ABI). The ABI claim around £15 will be saved by those over-declaring when points have already expired. Malcolm Tarling of ABI said, “It [the system] should also speed up and simplify the application process for customers who will not have to guess what motoring offence may or may not need to be disclosed.”
The service, called ‘MyLicence’, will confirm the type of licence held by the motorist, how long they have held a licence and a list of driving offences.
Seven out of ten top insurers have already registered for the service, due to launch on 14th July. However Julie Daniels, of www.comparethemarket.com, said “I believe that there will be little material change in premiums until the initiative is taken up across the industry.”
Other sceptics have cited concerns around security. However, there is a definite shift towards paperless motoring records, with paper car tax discs and paper counterpart licences being phased over the next 12 months.