DVLA to launch a system that will allow insurers to check driving licence records online, making deception and mistakes less frequent.
Also Insurance premiums for motorists may be cut by up to £15 a year after the government announced that all driving licence records were being put online as part of my lisence project .
The searchable database for individuals and companies to check speeding endorsements and other details could also bring down the cost of car hire.
Currently insurers are unable to check licence details when they sell policies, and so have to "price in" the risk that drivers either lie to them about endorsements to get a lower quote, or simply make a mistake.
But a system due to be launched by the DVLA in March will allow them to access the information through the gov.uk website using an individual's licence number, national insurance number and postcode.
The Association of British Insurers has estimated that honest motorists could save £15 on their premiums thanks to the data being put online.
Car hire companies will also have their administration burden reduced through being able to check drivers' details online rather than by phone.
The paper counterpart to the driving licence card is due to be phased out by 2015, and there will be an assisted service for those who find it difficult to use the internet.
