High insurance premiums are a bugbear of many motorists. Young drivers in particular are affected by premiums to the point where some are faced with forking out much more for insurance than the initial cost of their car.

Driving down car insurance costs is something MP David Ward (Lib Dem, Bradford East), has long been campaigning for, and this week he welcomed news that premiums could be cut by moves to put all driving licence records online as part of the My Licence project.

Developed as part of the Government’s digital agenda to gradually move services on to the internet, the searchable database for individuals and companies to check speeding endorsements and other details could save motorists £15 a year on their insurance premiums and could also reduce the cost of car hire.

“It’s great,” says David. “And it is another example of a step in the right direction towards getting down to what should be sensible and affordable insurance premiums.

“This isn’t really part of our bigger campaign because it is an efficiency saving that has been passed on to premium payers as a result of new technology, but anything that reduces unaffordable insurance premiums must be good and it is a sign of the commitment that the coalition Government has got to dealing with the problem of unaffordable premiums.

“It is yet another step in the right direction but there is still a long way to go.”

Currently insurers are unable to check licence details when they sell policies and 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 the 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 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.

Cabinet Office minister, Frances Maude, said the initiative would “enable insurers, for example, to price more accurately, because they will not have to take anything on trust”.

He added: “When people say what their endorsements are on their licences you can check it so you can price more accurately so you can reduce the cost of insurance for most people.”

Victor Beckley, chairman of the Bradford and District Driving Instructors Association, says: “If there are benefits for motorists then terrific, provided the information is secure.

“I have spoken to a number of colleagues who have said they feel insurance companies have too much information already, and they are also a bit sceptical that there will be financial benefits to motorists.”

Helen Collins who runs Helen Collins School of Motoring, based in Clayton, says: “It is definitely a good idea if they can check it and it makes it a bit cheaper for pupils.”

Zoe Nichols who runs Wibsey-based Ladies Only Autocare, offering travel and car servicing exclusively for women, also welcomes the initiative.

“I think if it reduces premiums for honest people it has got to be good. If I am having to pay a risk element because some people either lie or go around speeding, it isn’t really fair,” says Zoe.

She says honest motorists are already penalised because of those who put in insurance claims when they shouldn’t, and she hopes the initiative may also deter people from breaking the law when behind the wheel in the first place.

Chris Smith, who runs Bradford-based Driving Mode driving school, says while he agrees with the initiative helping to drive down insurance costs, he wants to see a governing body set up to regulate the prices insurance companies are charging.

Chris believes this will combat the often exorbitant prices young motorists in particular are being quoted. He is also concerned that if insurance premiums continue to increase it may encourage some motorists to drive illegally by not taking out insurance. Some areas of Bradford already have high rates of uninsured motorists.

AA president, Edmund King, says: “We welcome any efforts to bring down the cost of car insurance and being able to accurately check driving licence records will help insurance companies to overcome fraud and hence offer lower premiums.

“According to an AA/Poplus study of 17,883 AA members, an overwhelming 92 per cent of respondents supported the move ‘if it cuts down fraud,’ with 72 per cent strongly agreeing. Similarly, most respondents said they have no problem with providing their driving licence number to enable their insurer to obtain such information.”