Brendan Ryan (Dublin Fingal, Labour)
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254. To ask the Minister for Finance his views on increased car insurance premiums for vehicles over ten years old; his views on whether there should be no extra premium for a car based on its age as long as the vehicle passes its NCT; his plans to address this unfairness; and if he will make a statement on the matter. [41653/16]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation.  Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept.  This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I cannot require companies to price insurance for older cars in a particular way. 

In making their individual decisions on whether to offer cover and what terms to apply, motor insurers use a combination of rating factors. The age of the car can be one of these factors, in addition to the age of the driver, the type of car, the claims record, driving experience, the number of drivers, how the car is used, etc.  Insurers do not all use the same combination of rating factors and as a result prices vary across the market and consumers are free to choose accordingly. In addition, insurers price in accordance with their own past claims experience; for example, where the age of a car is a factor, different insurance companies would use different age thresholds.

Policy in relation to the NCT lies with the Minister for Transport, Tourism and Sport.  The NCT was introduced to comply with an EU Roadworthiness Testing Directive aimed at improving road safety and environmental protection.  The NCT is an inspection or general "health check" of what is visible and accessible on the day of the test and includes a check of the roadworthiness of such safety features, amongst others, as lighting, brakes and tyres. It goes beyond the current Directive's requirements in many areas and the Department of Transport, Tourism and Sport is of the view that the Irish system is one of the best roadworthiness testing regimes in the EU.  While the NCT is one component of having safer vehicles on our roads, every vehicle owner has a personal and legal responsibility to ensure that their vehicles are roadworthy and well maintained.