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Insurance companies to get access to drivers’ DVLA records

Insurance companies will have access to drivers’ DVLA records as part of a new system designed to reduce fraud levels. MyLicence will reveal motorists’ convictions and penalty points, reducing the likelihood of drivers providing incorrect information either accidentally or deliberately. 

The system has been developed by the Association of British Insurers (ABI), the Motor Insurers’ Bureau, the DVLA and the Department for Transport. 

According to the ABI, the new scheme should cut costs and the amount of fraud that occurs as a result of the current self-declaration system. 23 per cent of motorists have made incorrect disclosure about their driving history, it has been claimed, therefore making insurance invalid and increasing premiums for honest drivers. 

Stephen Glaister, director of the RAC Foundation motoring organisation, said: “the majority of honest drivers will probably welcome this change in the hope it cuts their premiums.” 

“The cost of insurance has gone through the roof over recent years and anything that enables premiums to more realistically reflect a motorist’s risk and driving record should help bring down the cost of running a car for those who tell the truth,” Glaister added.

MyLicence will be tested from February 2014 and then begin in full during the second quarter of the year.

Good idea or not? Let us know by posting in the comments below. 

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