Motorists could see insurance premiums cut by up to £15 a year after the Government announced all driving licence records will be put online.
The My Licence searchable database for individuals and companies to check speeding endorsements and other details could also bring down the cost of car hire (see our Driving Licence guide to check if your licence is valid).
Currently, insurers are unable to check licence details when they sell policies – and so have to "price in" the risk that drivers either lie about endorsements to get a lower quote, or that they 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 estimates honest motorists could save £15 on their premiums thanks to the data being put online.
Car hire companies will also be able to cut back on administration, 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 a help for those who find it difficult to use the internet.