Insurers are confident that a new insurance database called MyLicence, due to go live in the next few weeks, will put an end to motor insurance companies relying on drivers telling the truth about their driving history.
Checking the database will negate the need for brokers and insurers to ask potential customers to list certain details including penalty points. Industry experts say the new database will speed up the application process and could cut £15 off the average car insurance premium for drivers.
After the database goes live people searching for car insurance quotes may be asked to provide their Driving Licence Number (DLN).
The DLN will be used to get information from the DVLA about the driver. This will include the type of licence held, how long they have held it, and any driving convictions. However, this will be a voluntary option, as consent must be given for records to be checked.
It should mean you can no longer lie or make mistakes about your driving history. The Association of British Insurers (ABI) reckons that 23% of data provided to motor insurers is incorrect, with 16% of policyholders under-declaring convictions, and about 7% over-declaring. Currently, insurers can check individual driving records through the DVLA, but this is expensive and time-consuming.
The idea behind MyLicence is to ensure that risk is priced accurately and to speed up the quotation process. Dishonest drivers, who have been lying about their driving history when obtaining insurance in the past, will pay more. It’s worth pointing out that lying about your driving history when applying for insurance counts as fraud and can invalidate your car insurance.
Drivers themselves will not have access to the MyLicence system – it’s for insurers and brokers only. However, the DVLA is developing a separate online database called View Driver Record for consumers to check that their details are correct.
What effect do points have on premiums?
How much you pay for car insurance depends on a number of factors including your age, where you live, the car you drive, your driving history (including accidents), and your job. So, how many points you have is just one influence on the premium you’re quoted.
Points for speeding or other offences will mean you’re a higher risk and you’ll pay more for insurance.
If you’ve been convicted of drink driving or been disqualified for a period of time, you can expect a much bigger price hike than if you just got three points for speeding.How long points will remain on your licence depends upon the driving conviction that you’ve been charged with.
In most cases this will be four years from the date of the offence or the date of conviction. However if you’re convicted of a more serious offence such as drink or drug driving or causing death by dangerous driving then the endorsement will be on your licence for 11 years.
Link: A new way to view your driving licence (from gov.uk blog)
Link: View your driving licence information (DVLA)