Appearing before the Transport Select Committee, Mr Penning said the Government was looking at giving insurers greater access to motorists’ driving record.
Because of data protection laws, a driver’s consent would be required before the DVLA opens its records to insurance companies.
One option being considered by ministers would be to allow companies to include a request for access to the DVLA database on the insurance proposal form.
They would be free to decline insurance to a driver who was not prepared to allow insurers to obtain information on any previous motoring convictions.
In a separate move learner drivers could be allowed on motorways, Mr Penning told the Committee.

Jon Cherry is a Director of leading personalised number plate dealer Regplates.com. Jon has over 25 years industry experience handling some of the most expensive plates ever sold with many high profile and celebrity clients. Active since 1991 in the number plate industry, Jon is currently Chairman of the Cherished Numbers Guild, a trade body representing number plate dealers in the UK. Jon has written many articles on the industry and insight into the future of numberplates and the market as a whole.