posted 2 years ago

Driver Licence Database Could Reduce Insurance Premiums

My Licence Database

The My Licence Database could reduce the cost of motor insurance. But why? The purpose of this resource – that should be complete in 2015 – will be to enable insurers to confirm the claims motorists make about their licences before pricing the policies. This will reveal any endorsements or disqualifications which is important as twenty-three percent of drivers make inaccurate statements (according to the Association of British Insurers). Some of these statements are errors whereas others are ploys to reduce premiums. As things stand, insurers that want to double check licence claims must contact the DVLA by phone. This is to costly and time consuming to perform in every case - so they recognise that some people will misrepresent themselves and price in risk across the board. Every licence holder is therefore penalised. The Association of British Insurers estimates that the database will reduce the price of insurance for honest motorists by £15. I suspect that drivers will believe that if they see it. Furthermore, the paper counterpart that accompanies the photocard  licence will soon be obsolete, so it will be phased out by 2015. The older-style paper only licence will be abolished soon afterwards.

Making False Statements To Insurers

The My Licence Database will minimise the number of false statements relating to licences - but there is a wider issue. Some motorists – often young, carefree, motorists - believe that making false statements to their insurers is a risk free pass time. Nothing could be further from the truth. Why? Because insurance companies that have been misled might be within their rights to cancel policies and deny claims. As collisions can cause hundreds of thousands of pounds worth of damage, the long term consequences could be devastating. Furthermore, motorists that have had their insurance cancelled might struggle to find new providers. Typical false statements include claiming to live in a low crime area – perhaps with parents - in a bid to reduce the premium. Claiming to drive (say) eight thousand miles per year while covering twenty-thousand is another common scam. Equally, a motorist might fail to tell the insurer that the vehicle has been modified with expensive alloy wheels, exterior stickers and carbon fibre components, etc. In the event of a theft, the insurer might therefore claim that the policy is invalid as the premium was based on a standard specification car that would have been less of a target.

 

This will no doubt make it even harder to insure a vehicle not kept at the same address on your driving licence. I've run into problems where the "normal keeping place" of the vehicle (which is what insurance premiums are based on) doesn't match the address on my licence (I am on the electoral roll at both locations) and I then have problems from "cheap online quoters". So now I stick with reputable companies, and avoid brokers like the AA who can't handle such common issues.

I think there's too much traffic on the road & it takes twice as much time to get from A to B with motorist chopping & changing lanes as they like sometimes without indicating. Most of the time u can't drive over 30 & having to stop frequently for traffic lights, box junctions. The roads in this country are not maintained & r deteriorating quite badly. Year on year we keep on paying the so much road tax but the government or the council isn't doing anything about maintaining our roads.

I personal think this is aload of S##T talk have any of u not made mistakes in ur passed. Inserence companys ask any endorsements in the passed 5years but ppl have 2 understand ex sample drink driven u get banned etc but wen it comes 2gettin it back u have 2do test again etc 65 for a provey licence cus ur high risk offender then stays on ur licence for 11years then after 11years u have 2pay another$20 2get them removed were is the justest in that ppl get 11years for murder then come out a hero as for high risk post codes that is aload of crap u could be driven any were and get highjacked etc as we all no

Let's face it people ,driver's are the only biggest income for police,for local authorities n for govt. We pay road tax but our roads are full of big grave like pot holes.we pay high insurence but yet when it's time to claim we get only pennies back.you can't move freely for 10 miles ,if it's not camaras then police stoping u to tel you that you just went over the white line of a tiny round about .gives you fine of £30 .or stoping you near the school at 1:30 for driving at 30 caz you should be doing 20. We pay our fines (as there is no choose) but yet our insurence squeaze us too .parking fines is another joke .you want to visit your loved ones in hospital you hav to pay for it.even if you are taking your child to A&E first you hav struggle to find parking space and then pay for it.then worse of all because of these pot holes your breaks down evry other month and we hav to fork the bill. When somebody says to me Britain is a democratic n free country , I only laugh . So should you all .

Just had to add, I feel that we do indeed live in rip off Britain and the £15 saving will probably be more than taken away with some other excuse from the Insurers to hike premiums, therefore you will still pay more!

I totally disagree with Lyndon Pearson's comment posted at 20/01/2014 13:43:45. He states: "The fact is, the more miles you do, the more chance of getting points for speeding, especially as there are so many cameras about now." It doesn't matter how many miles YOU drive so long as you stick to the speed limit, you won't get points. On the other hand I would say, that the more miles you drive (no matter how safe a driver you are) you stand a greater chance of being involved in an accident EVEN if it is not your fault; this logically should unfortunately cause an increase in your premium. Regarding the £15 reduction, I do agree with Peter Kelly (oh, look there is another flock of pigs flying by!!!)

@Terry Kidd, I had exactly the same thing happen to me. Sitting on the road with brake lights on and a crinkly in a Fiesta ploughed into the back of me. Aside from all the inconvenience of getting the car to the repairers at my expense, when my next premium came through it was a lot higher. I was told, despite being blameless in the accident, that because I had one that I was more of a risk statistically! Maybe this sort of charging explains why so many people are playing the whiplash thing to cover some of their ongoing costs caused by unjust premium increases!

Insurance Companies are not honest in their dealings with the public. After 20 year with my insurance company without a problem I was tail ended on a busy road near where I live. The driver who tail ended me was found to be 100% to blame. After all costs for the repair and full reimbursement of my insurance excess I thought nothing of it until I received my renewal!! It was £160.00 dearer - when I called to query the uplift they said "you were involved in an accident". I was furious and asked to speak to a supervisor. I reminded him that I was in no way to blame for the accident but he went on rambling about government tax had increased et. etc. so I asked him why he hadn't checked my policy, as even if I was to blame I also paid an addition to premium for accident claims protection cover!! It was only then that he backed off and agreed to reduce the renewal cost!!

Roger: if £15 is not much to you, you should be buying insurance company shares and coining it.

So paper licences will be phased out shortly after will they? Well, sorry, but my licence clear states valid until 5/6/2032, so no chance of that being phased out. My mum still has a valid provisional licence in the old book style which was valid until her 70th birthday, seven years ago. although she didn't drive, in theory she could have done, it was a valid licence.

I do NOT believe the poor motorist will SAVE anything by this proposed scheme.

just another load of rubbish to scam people they will set it up then put up prices to cover the cost of running it and all us honest motorists foot the bill again

Who are they kidding the insurance companies passing on a £15 saving it may cost them £15 a year per customer but you can be sure that any saving will go into pofits.

Should have done this years ago a save asking all the questions every time you call for a quite

Reduce the insurance by £15.00, wow, that is a lot, NOT. I get told I am paying for other people's stupidity, bad driving,fraudulent claims when my insurance comes up for renewal. It is sickening how honest people get ripped off!

The older-style paper only licence will be abolished soon afterwards." and guess who is going to have to pay to have their licence converted -

Reduce costs! how long have Pigs been flying in formation in the 'Rip Off' car insurance idustry! When I took out my 1st Car Insurance one price bought the lot! Now the premiums have been chopped up into small slices why? to increase the Premium! So why cant we Brits buy our Insurance from say Spain? Now we are talking that offencsive word 'Compition' Send a shockwave through the Industry what!

As someone who has been driving for 35 years and not ever had any points ever, I welcome the open access to the driving license database. What's the problem? If access is available to the insurer for every driver so that we are all on the same playing field what's the issue? And for those getting caught at cameras, they are the big yellow boxes on the side of the road. You just need to be aware of what's around of you and then you don't get caught. Simples.

Can't help thinking there must be some Data Protection issues here somewhere, however I become increasingly bemused by Car Insurance companies wishing to know of Driving convictions in the last 5 years when endorsements generally expire after 3 years & can be removed from licence after 4 years. I'm not sure of this either, seems it's a DVLA thing. If an endorsement lasts 3 years it should be gone after 3 years. What's the saying? "Time served". I guess it's yet another scam the motorist attempt. With endorsements removed one may no longer hold the details. It would be much simpler if premiums were set like Spain. The car is insured on an any driver basis with premiums varying depending on the minimum age of drivers permitted to drive. Also premiums carry an automatice breakdown recovery which seems far more sensible & the premiums are currently lower than UK. Any one with endorsements has already paid the penalty whilst placing their ability to drive at risk. Is it right that having paid the penalty at the outset, drivers should continue to be penalised probably 5 times over during the next 5 years. I guess the UK is looking for any excuse to hike the income from drivers. I hope these comments generate some debate. I'll watch with interest

That's a idea but they should look at the post codes as well as my premium is high due to a postcode saying it's a high crime area but it couldn't be the opposite more my postcode covers such a large area I feel it's unfair

Another case of 'BIG BROTHER'!! Will it publish all records from your licence or just the last five years what are relevant. The fact is, the more miles you do, the more chance of getting points for speeding, especially as there are so many cameras about now.