Dáil Éireann Debate, Tuesday - 16 January 2018
1388. Deputy Niamh Smyth asked the Minister for Transport, Tourism and Sport if his attention has been drawn to the fact that some insurers choose to ignore the NCT when considering a quote for an older vehicle (details supplied); and if he will make a statement on the matter. [55020/17]
View answerThe National Car Test which was introduced to comply with an EU Roadworthiness Testing Directive, is aimed at helping to prevent avoidable crashes and improving road safety, and a car which passes this test may be driven on our roads.
The Cost of Insurance Working Group, chaired by Michael D'Arcy, T.D., Minister of State at the Department of Finance, examined the circumstances behind the rising cost of motor insurance and how to improve the situation. This included an examination of the issue raised by you. A copy of the Cost of Insurance Working Group Report and subsequent updates can be found here - http://www.finance.gov.ie/what-we-do/insurance/the-cost-of-insurance-working-group/.
The Cost of Insurance Working Group Report commented that an ‘older vehicle may have a greater risk of injury due to its lack of safety features compared to a modern vehicle’ (See Point 2.4 Underwriting Risks and Coverages, Section vii. Vehicle details on page 29 of the Report). Research by the Road Safety Authority indicates that in the event of a collision, the level of personal injury to an individual in an older car can be significantly higher than if that person was driving a new car. Safety features on newer cars can include greater use of airbags, electronic stability, improved braking systems, roll-over protection, etc., all of which are designed to reduce the impact of a collision on the occupants. A higher overall level of personal injury payout may be one factor that leads some insurance companies to consider older cars a higher risk in terms of potential payouts when considering the underwriting of a policy.
