Driving Licences To Go Digital By 2015

A government move to abolish the paper counterpart to UK driving licences is expected to reduce car insurance premiums and provide significant cost savings for motorists.

The migration, which will be complete by mid-2015, will reportedly end the need for the "paper counterpart" document drivers have to keep with their licence and insurers have said "honest" motorists could see premiums fall by up to £15 a year.

Cabinet Office minister Francis Maude said anyone with a driving licence would be able to use the online database while there will be an assisted service for those who find it difficult to use the internet.

He said: “To win the global race and save hard-working taxpayers more money, we need world-class public services available online 24/7 from anywhere.

“That’s why it’s great news that DVLA is about to launch online driving records which can be used by anyone with a driving licence as well as by the insurance industry.

“Back in 2010 our digital offering was limited at best and government IT was a by-word for disaster. There are still challenges but with the help of the Government Digital Service I am determined that the UK will be the G8’s most digital government by next year.”

At the moment, insurers cannot check licence or traffic offence details when they sell policies, meaning they have to "price in" risk factors.

The Association of British Insurers says premiums are pushed up by the fact that firms have to take account of the risk that drivers either do not tell the truth about speeding points to get a lower quote, or simply make a mistake.

"Significant cost savings" would also result from "reducing the need to obtain paper copies of licences from policyholders,” the association added.

The paper counterpart to the driving licence photo card is due to be phased out by 2015 while it was announced in December that paper car tax discs would also be scrapped.

(Image courtesy of David Dixon / Geograph)