Your driving licence information will be shared with the insurance sector via a digital platform which sees the abolition of the paper counterpart of the driving licence on 8 June 2015.
In essence, it means any liars seeking to reduce their premium by not declaring all or some of their endorsements will be caught out. And according to the DVLA, that amounts to 23% of us who do not provide accurate information. Instead of relying on the individual motorist to complete reams of data when applying for a motor insurance quote, the information will be gleamed direct from your DVLA record.
Here’s a quick overview of what you need to know and, be a kind-hearted soul, and pass the information onto your customers.
The MyLicence scheme has been live since December which provides accurate driver details to insurers which will therefore result in cheaper insurance quotes for many as well as protecting the motorist since insurance cover will not be invalidated as a result of a driver mistakenly providing incorrect details.
MyLicence is a joint initiative between the DVLA, the Department for Transport, and the insurance industry, represented by the Association of British Insurers (ABI) and the Motor Insurers’ Bureau (MIB). These organisations work together to deliver the service in partnership with insurance brokers, comparison sites, and other industry bodies.
By sharing digital information provided by the DVLA with insurers, it not only ensures individual information is correct, but reduces the risk of fraud so in the event of an accident, you can be more confident, the other driver is properly covered.
MyLicence provides a way for insurance companies to double check all your information is correct so you can be provided with the right level of cover. It is likely insurance companies will not provide you with cover if you do not provide your driving licence number and even price comparison websites are likely to refuse to offer their services to those who withhold their information or prefer to simply declare the details themselves.
It may sound a bit big brother-ish, but there are several advantages including taking away the requirement to enter endless amounts of data every time you want to generate an insurance quote. According to the MyLicence website, 16% of us under-declare our convictions, which invalidates insurance in event of a claim, although 7% also over-declare. As well as your own details for insurance quotes and cover, you can also include the details of named drivers. To use the system though, you will need your driving licence number, your national insurance number and the postcode on your driving licence as well as these details for any named drivers.
The information provided to insurers when you request a quote, will be:-
- Type of licence held
- Length of time the licence has been held for
- Penalty points
- Conviction dates
MyLicence will also provide a prompt to the motorist to make any changes, if your photo-card is out of date, for example, and experts say it could reduce premiums by around £15 per year for honest drivers.
Your details will only be used to calculate motor insurance and will not be shared with anyone.
If you hold a British licence (ie. it has been issued in England, Wales and Scotland), you can use MyLicence, but if you’re from Northern Ireland, the Isle of Man and the Channel Islands you will not be able to do so.
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