The latest car insurance news from Impounded Car Insurance UK. The government have said that car insurance premiums are likely to drop, as they have made all driving license records available online for insurance companies.
Car insurance premiums are likely to be lowered after a new scheme has been implemented by the government to make driving license records readily available for insurers. This means that insurance companies will now no longer need to rely on drivers to give them the correct information as they can access it direct for themselves.
The move is planned so that insurance companies can automatically see details of applicants driver’s license, such as speeding endorsements, motoring convictions, length license held & what type of vehicle the license allows the driver to use.
Car insurance companies currently add extra costs to premiums to cover drivers who will lie about their details to get a cheaper quote and to also cover motorists who make mistakes when providing their details to the insurer. With this risk eliminated it the government are expecting to see a drop in all car insurance premiums across the board.
The move is expected to be completed by 2015 when paper counterparts to driving licenses will be scrapped. The old style paper driving license held by approximately 10 million UK drivers will be abolished and replaced shortly after.
The DVLA have said that they are certain these changes will have an affect and that all motorists will see a reduction in their car insurance premiums as a result.
