Mr. Justin Moran:

On behalf of Age Action Ireland I thank the committee for its invitation to speak today about an issue that causes substantial frustration to many of our members. In recent months, many have experienced substantial age-based increases in their car premiums.

Frank is a 70-year-old man from Dundalk. He has never had an accident or made a claim. He has a full no-claims bonus and drives less than 5,000 miles per year. Last year, when he was 69 years of age, his car insurance premium was €293. Last week, his insurer quoted a price of €493, an increase of more than 68%. Frank relies on the State pension, and therefore his car insurance represents more than two weeks of his income.

In April this year we were contacted by Teresa, who is over 70 years of age. Her car insurance was going up from €470 to €700. She haggled with the provider - fair play to her - and got a deduction or discount of €50. However, it still represented an increase of more than 38% in her car insurance premium. During her conversation with the customer service representative, she was told that the reason for the premium increase was that older drivers were more of a liability. As Teresa pointed out, and as I will outline, older drivers are safer drivers because they have years of experience. However, the comment made to Teresa illustrates a perception held by insurance companies that older people are more likely to be involved in accidents and should, therefore, pay a higher premium. This view is not supported by the evidence. The Central Statistics Office 2013 transport omnibus survey found that 22% of driving licence holders are over the age of 70 years, yet they received less than 9.5% of the total number of penalty points awarded that year.

Professor Des O'Neill, the national programme director for traffic medicine with the Road Safety Authority, referred to the belief that older drivers are more dangerous as a "tenacious and fixed false belief" that is not supported by the evidence. He went on to cite Dutch research which found that children in crashes where the grandparents are driving are at half the risk of injury as where their parents are driving, simply because they tend to be driving at lower speeds. The Institute of Advanced Motorists in Britain also says that older drivers are safer drivers. They point out that older drivers tend to be more cautious and self-regulate by choosing not to drive at times when they do not feel comfortable, such as in poor weather or in poor light conditions. They are also less likely to drink and drive, take illegal drugs or speed. The institute has also produced statistics showing that British pensioners, despite making up 8% of all drivers, are only involved in around 4% of accidents that cause injury. Yesterday, new research from the University of Swansea found that drivers aged 70 were involved in between three and four times fewer accidents than young male drivers aged between 17 and 21.

These arguments are echoed by the Consumer Federation of America's director of insurance, who said, "The focus for insurers should be on driving record, mileage and type of car ... things clearly related to risk ... all the actuarial data I have seen indicates less risk for the older drivers." When Age Action has asked for this actuarial data or any data from Irish insurance companies in the past we have been told it is commercially sensitive. In this regard I echo the points, articulately made by Mr. Faughnan and Mr. Griffin, about the issue of trying to get data from insurance companies.

It is also important to highlight the additional health requirements imposed on older drivers and it would be very useful if the committee could determine whether these are considered by insurance companies when setting premiums. Any driver over the age of 70 applying for a licence needs a certificate from their doctor confirming their medical fitness to drive. These licences are only valid for one or three years, depending on the judgment of the doctor, compared with the ten years to which many of us are accustomed, and older drivers are subject to regular health checks to ensure they are safe to be on the road. This is a level of scrutiny that is applied to no other age group but there is no indication that this is considered by insurance companies.

Age Action also suggests that the imposition of inflated premiums on older drivers may not be compatible with EU law. Committee members will be familiar with the 2011 decision by the European Court of Justice which ruled that Article 5.2 of the 2004 Council directive on gender was incompatible with the EU's Charter of Fundamental Rights. This article contained an opt-out, availed of by all 27 member states including Ireland, which permitted them to allow insurance companies to treat men and women differently in setting premiums where this was justified by "relevant and accurate actuarial and statistical data". The court found that this was contrary to Article 21 of the Charter of Fundamental Rights which prohibits discrimination on the grounds of sex. The same article also prohibits discrimination on the grounds of age.

Finally, we would like to address the impact of increased car insurance costs on older people. Being able to drive is synonymous with independence but it is more than simply a lifestyle choice. For many older drivers it is an absolute necessity and may mean the difference between living independent, full lives in the community or being forced into residential care. Some committee members represent rural constituencies and will be particularly conscious of the challenges facing older people, for example, where there is no public transport system. Older people who are unable to drive face increasing social isolation and must rely on friends or family for transport. Research published earlier this year in the Journal of the American Geriatrics Society found that "driving cessation was ... associated with declines in general health and physical, social, and cognitive function and with greater risks of admission to long-term care facilities and mortality". It also found evidence that the risk of depressive symptoms in older adults forced to stop driving was almost doubled. While most older people who do stop driving do so health reasons, for others the challenge is financial. As with Mr. Griffin, we have had people contact us saying the cost of car insurance premiums are in danger of putting them off the road.

In closing, while Age Action appreciates the fact that the committee is looking at the issue of car insurance on a broad basis, which we welcome, we urge members to address the impact of these rising car insurance premiums on older people.