Transport Minister Leo Varadkar said today that insurance companies must cut premiums for safe drivers or face being excluded from the penalty points database.
From today, insurers will have access to the penalty points database and will be able to see what offences drivers have committed for the first time.
They say the scheme will see premiums rise for those who have committed serious road offences.
Minister Varadkar said that insurers have been told to lower costs for safe drivers, or else access to the details of the points could be revoked.
"It is something that we said to the insurance companies, so we do withhold the right to withdraw this information from them if they use it only to their advantage," he said.