Lower premiums expected with online records
The government has started a migration of all driving records onto an online database meaning drivers and riders will no longer have to carry the paper counterpart of their driving license. This in turn means that insurance companies will now be able to check license or traffic offence details when they sell policies rather than having to 'price in' risk factors.
The Association of British Insurers claims that premiums are pushed up by the fact insurance companies have to factor in the risk that a customer may not be telling the truth about points on their license or simply have made a mistake when getting the quote. By having the records online insurance companies will be able to access driver's records straight away again reducing cost because there is no need to obtain the paper copy. Insurers have said that 'honest' motorists could see premiums fall by up to £15 a year.
Cabinet Office minister Francis Maude commented, "Bringing license records online will enable insurers to price much more accurately, because they will not have to take anything on trust."
The changes are set to begin soon and are expected to be complete by 2015.
Quote taken from Insurance Times.
14.01.2014 - MCE Insurance