Out-Law News 1 min. read

Centralised driver data sharing service for motor insurance industry gets underway

The government's Driver and Vehicle Licensing Agency (DVLS) will share some driver details with insurers to help calculate premiums. The information will only be shared with drivers' permission.

The MyLicence programme is a joint initiative of the UK government and insurers and is the first digital sharing initiative for the motor insurance industry using driver details, according to the DVLA. It will allow participating insurers to securely access driver entitlements, convictions and other relevant motoring history tied to a driving licence number, with the consent of the licence holder.

"MyLicence is good news for motorists and good news for the motor insurance industry," said Claire Perry, the transport minister. "This government is investing in the service which will allow insurers to price much more accurately, which should reduce premiums for honest motorists."

MyLicence is a product of the government's Insurance Industry Access to Driver Data programme and the DVLA's ongoing aims to digitise the driver data that it holds and was developed in partnership with the Association of British Insurers (ABI) and Motor Insurance Bureau (MIB). The initiative is designed to reduce the potential for mistakes or fraud during the licence application process, and is expected to save "honest" drivers around £15 on the cost of their annual premiums.

The scheme will work by allowing drivers to provide their driving licence number to participating insurers, brokers or price comparison sites during the application or renewal process. This information will then be used to obtain details about the applicant's driving history directly from the DVLA driver database, removing the need for the applicant to provide the required information through a series of questions.

The DVLA will provide the insurer with details of the type of licence held and length of time it has been held for; the licence holder's entitlement to drive; and any penalty points, convictions, conviction dates and disqualifications. Medical information, full addresses and photographs held by the DVLA will not be shared. Insurers will only be able to use the information for the purposes of providing a quote, and will have to anonymise and destroy any data after the quote expires.

Drivers will still be able to choose to self-declare their entitlements and driving history when applying for motor insurance. However, doing so will remove the risk of them using inaccurate information or information that is not up to date, the DVLA said.

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