Online Driving Records, Will Insurance Be Cheaper?

Government has some ambitious projects set to be operative in 2015: 25 public services are due to go digital by then, to reduce costs bot in the management of those services and the costs that each citizen have. One of those services is about driving licences and records; everything will be stored in big databases accessible by insurance companies, Police and other companies in the sector, to speed up controls and reduce costs.

Driving records database

Driver and Vehicle Licencing Agency (DVLA) later this year will launch a system that collects all the information about individual’s licence and traffic offence details; this system will be accessible for the Police and insurance companies. The system will help speeding up Police controls and (more importantly for the driver) will potentially reduce the insurance premium. When someone insures a car, some details are requested. Details that include information about traffic offences and points on the licence. These details contribute to determine what the cost of the insurance will be, but as there is no way for the insurer to confirm those details, there is always the risk that people might be forgetting a few points to get a cheaper deal. For this reason insurers price in a risk factor that results in higher costs for the driver. This new system will allow companies to perform a check on the driver putting licence number, NINo and post code into the system. Drivers that always behaved and never got points will then see the price go down, encouraging people to keep on respecting speed limits and being cautious on the streets. The same will happen with car hire companies, that will be able to quickly check driver’s records.

No more tax disc

Another thing that will retire by end of 2015 is the tax disc, that has been around for 93 years since 1921. Other services like assessing people’s ability to drive can’t be made electronic and fully automatic, but the processes behind this kind of service can be made faster and easier by computer-based systems.

Easier controls

This new technology will hopefully also help at keeping an eye on those people that kept driving with way more than 12 points on their licence as we’ve read on the papers in the past few days. Police, DVLA and courts should manage to communicate more easily through this kind of system that is accessible by all the parts involved in the process of ensuring law is respected by everyone on our roads. If you are interested about that topic, there is an article here that talks through it.