MyLicence: driver database will cut some car insurance premiums

The MyLicence driver database means drivers won't be able to lie when applying for car insurance

%VIRTUAL-SkimlinksPromo%The MyLicence driver database means drivers won't be able to lie when applying for car insurance.

Insurers are confident that MyLicence, a Big Brother-style insurance database, due to go live in the next few weeks, will put an end to motor insurance companies relying on drivers telling the truth about their driving history.
MyLicence will only be available to insurers, not the general public, and will confirm whether a driver has been convicted of any driving offences.

Checking the database will negate the need for brokers and insurers to ask potential customers to list certain details including penalty points.

Industry experts say the new database will knock £15 off the average car insurance premium for some drivers and speed up the application process. But will it?

What is MyLicence?

The database is called MyLicence and has been under construction for three years. Initially known as Insurance Industry Access to Driver Data, it's a joint project between the Driver and Vehicle
Licensing Agency (DVLA), the Motor Insurers' Bureau (MIB), the Association of British Insurers (ABI), and the Department for Transport.

The ABI says that after the database goes live people searching for car insurance quotes may be asked to provide their Driving Licence Number (DLN).

The DLN will be used to get information from the DVLA about the driver. This will include the type of licence held, how long they have held it, and any driving convictions. However, the ABI points out that it's voluntary - we all have to give consent for our records to be checked.

It should mean you can no longer lie or make mistakes about your driving history. The ABI reckons that 23% of data provided to motor insurers is incorrect, with 16% of policyholders under-declaring convictions, and about 7% over-declaring.

Currently, insurers can check individual driving records through the DVLA, but this is expensive and time-consuming.

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What does MyLicence mean for your insurance?

The idea behind MyLicence is to ensure that risk is priced accurately and to speed up the quotation process.

The ABI says some drivers will save an average of £15 under the new system as they will no longer own up to spent penalty points and convictions by mistake.

Dishonest drivers, meanwhile, who have been lying about their driving history when obtaining insurance in the past, will pay more. It's worth pointing out that lying about your driving history when applying for insurance counts as fraud and can invalidate your car insurance.

Basically the effect of MyLicence on insurance costs will come down to whether you've been telling your insurer the truth so far. However it relies upon insurers and comparison sites signing up to the new system – not all of them have done so far.

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Can I check the information held on me?

Drivers themselves will not have access to the MyLicence system – it's for insurers and brokers only.

However, the DVLA is developing a separate online database called View Driver Record for consumers to check that their details are correct. It's due to launch next month.

What effect do points have on premiums?

How much you pay for car insurance depends on a number of factors including your age, where you live, the car you drive, your driving history (including accidents), and your job. So, how many points you have is just one influence on the premium you're quoted.

Points for speeding or other offences will mean you're a higher risk and you'll pay more for insurance.
If you've been convicted of drink driving or been disqualified for a period of time, you can expect a much bigger price hike than if you just got three points for speeding.

How long points will remain on your licence depends upon the driving conviction that you've been charged with.

In most cases this will be four years from the date of the offence or the date of conviction. However if you're convicted of a more serious offence such as drink or drug driving or causing death by dangerous driving then the endorsement will be on your licence for 11 years.

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The cheapest cars to insure
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MyLicence: driver database will cut some car insurance premiums

Price new: £5,995

Dacia has made a big impact in the UK with its line of affordable motors.
The Sandero is the foundation of the brand's offering and is famed for being the UK's cheapest car.

With a group two insurance classification it's also one of the cheapest cars to insure right now.
The entry level Access model is sparsely equipped, but it has a practical interior, big boot and low running costs.

Price new: £8,060

The Seat Mii is a small city car which Auto Express praises for its spacious interior, good build quality and supple ride.

All models are in insurance group one, bar the group two Sport version.
The Mii is available in three-door or five-door styles, but both measure just 3.5 metres, making it perfect for getting around town.

Price new: £8,090

The Skoda Citigo was crowned Auto Express Best City Car 2013.

The magazine praised its low running costs and practicality as well as its grown up driving experience.
Like its Mii stable mate the Citigo has group one insurance in all apart from its top specification model, making it one of the cheapest cars to insure.

Price new: £8,265

The third of the Volkswagen's group of three city cars to make the list is the Up!

Auto Express says the Up! was 'born to rule' city streets with its small dimensions and lightweight body.
There's three versions of this fun city car; Take Up! has a group one rating as does Move Up! while the higher spec High Up! gets a group two classification.

Price new: £8,345

The Hyundai i10 is another car which can get you a cheap insurance quote thanks to a group one insurance rating across all the 1.0-litre petrol models.

Auto Express says the new 2014 i10 offers big car features in a small package. And for £8,345 you also get Hyundai's five-year warranty and roadside assistance package.

Price new: £8,995

Vauxhall has managed to squeeze one of its full sized Corsas into insurance group two.
Auto Express says the 1.0-litre ecoFlex model has the lowest insurance costs of any mainstream supermini.

The eye-catching design, solid interior and big-car features make it an appealing buy for drivers.

Price new: £9,575

The Smart car caused a bit of a stir when it first appeared thanks to its dinky dimensions and bold two-seat layout, making it very useful for driving about town and absurdly easy to park.

The Smart ForTwo is the latest incarnation, which keeps to the same formula; it still has only two seats and is one of the smallest cars on the road measuring just 2.5 metres long,
The entry level 0.8- and 1.0-litre models qualify for group two insurance.

Price new: £11,810

The Peugeot Partner Tepee 1.6 VTi is the passenger version of the Partner van and according to Auto Express easily the most spacious new car that currently qualifies for a group two insurance rating.

It's got a boxy shape that provides plenty of room and has sliding doors which make it a very practical and flexible family car.

If you're after something smaller the Peugeot Bipper Tepee, which is the smallest of Peugeot's family of Tepee MPVs, also gets a group two insurance rating.


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