An online system that allows insurance companies to check the driving history of motorists will be launched by the Driver & Vehicle Licensing Agency (DVLA) from July 2014.

Called MyLicence, the system will allow for greater and more accurate insight into a motorist’s past convictions and penalty points.

As well as being aimed at making the car insurance process easier, the new process of recording licence details online eliminates both purposeful and accidental human error.

The only thing motorists will need to provide for insurances will be their unique 16-character Driving Licence Number (DLN).

Due to the added accuracy and efficiency of the system, motorists could reportedly save £15 annually on their insurance premiums.

The Association of British Insurers said: “As well as saving honest customers an average of £15 on the cost of their car insurance, this initiative will also mean that insurers will need to ask customers fewer questions when they apply for cover, speeding up the purchasing process for everyone.”