Online driving licence could see insurance premiums cut

Motorists may see insurance premiums cut by up to £15 a year after the Government announced that all driving licence records are being put online.

The searchable database for individuals and companies to check speeding endorsements and other details could also bring down the cost of car hire.

The My Licence project is the latest part of the coalition’s digital agenda, which has been gradually moving services on to the internet.

Insurers selling policies are currently unable to check details and so “price in” the risk that drivers may lie about endorsements to get a lower quote, or just make a mistake.

But a system due to be launched by the DVLA in March will allow them to access the information through the gov.uk website using an individual’s licence number, national insurance number and postcode.

The next phase of digitalisation will see the paper counterpart to the driving licence card scrapped by 2015. There will be an assisted service for those who find it difficult to use the internet.