Insurers will save between £5 and £10m a year

Electronic motor certificates will be in place by April next year, a deal which should save insurers between £5 and £10m in the first year.

Paul Clark MP, Parliamentary Under-Secretary of State, Department of Transport, committed the DfT to getting the necessary regulations in place by April.

Justin Jacobs, the ABI’s Assistant Director, Motor Insurance, said; “The ABI has lobbied for this change. Not only will it cut insurers costs, but consumers will no longer have to rely on the post and will receive certificates very quickly.”

AA director of insurance Michael Douglas said: “There has been a lengthy consultation period but solutions have been found to most of the security difficulties involved.

“In fact, the certificate is simply tangible evidence that the Motor Insurance Database has been updated and in most cases, police can confirm that a car is insured and tax discs can be applied for without the certificate.”

“However, there are still many occasions when a paper certificate must be produced, for example, when buying a new car or taxing your car at a Post Office, and it’s an anachronism that in today’s electronic world the certificate can only be delivered to a customer by post.”