Brian Stanley (Laois, Sinn Fein)
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34. To ask the Minister for Finance the actions being taken to address the substantial loadings being put on the insurance costs for both young and older persons and the refusal of some companies to insure vehicles over ten years old despite the fact they have a valid NCT. [50793/17]

Paschal Donohoe (Dublin Central, 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 am not in a position to review individual cases as to the pricing level or terms or conditions that they should apply in those cases. 

Motor insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply.  My understanding is that the factors include those such as the age and type of the car, the age of the driver, the claims record, driving experience, the number of drivers, how the car is used, etc.  As Insurers do not all use the same combination of rating factors prices vary across the market and consumers are free to choose.  In addition, insurance companies will price in accordance with their own past claims experience, meaning that in relation to the age of a car and the availability of cover, different insurance companies will use different age thresholds.  

The Deputy should note that the Competition and Consumer Protection Commission website has an informative section regarding the purchase of car insurance.  One of the tips listed to help cut costs is to “shop around” and to “always get quotes from several insurance providers when you need to get or renew insurance”.  A checklist for “motor insurance shopping around” is also provided.  I would note that this advice applies equally to older drivers as it does to young and inexperienced drivers.

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. 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.  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 is important to understand that the NCT is a minimum requirement of roadworthiness and that insurers will generally require that a car has a valid NCT in order to be covered.  However, in making their individual decisions on whether to offer cover and what terms to apply, this is not the only rating factor taken into account in the provision of motor insurance, as mentioned in the paragraph above. 

Finally, it is worth noting that according to the terms of the Declined Cases Agreement, the insurance market will not refuse to provide insurance to an individual seeking insurance if he/she has approached at least three insurers and has not been able to obtain cover from them.  If the Deputy is aware of a driver that is unable to get cover from an insurer on the grounds provided in the question, Insurance Ireland can be contacted in this regard at declined@insuranceireland.eu or 01-6761914 or 01-6761820.