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Road Safety Minister Stephen Hammond said that protecting road users from reckless drivers is a "key priority".
He added: "There is no evidence older drivers are more likely to cause an accident. In fact, most older drivers are aware of their limitations and manage their driving accordingly, so we have no plans to restrict licensing on the basis of age.
"In addition, drivers over 70 must renew their licence every three years and tell the DVLA (Driver and Vehicle Licensing Agency) about any conditions which might affect their driving."
People aged over 70 make up 9% of all drivers and are responsible for only 6% of driver casualties, Auto Trader said.
In comparison, 20% of motorists are aged under 30 and cause 35% of casualties.
Despite this, most drivers believe that elderly people should retake their driving test at the age of 66.
- 65% think older drivers should be subject to medical checks such as regular sight and co-ordination checks
- 30% think the Government should reduce the number of points older drivers are allowed before they lose their licence
- 21% believe the regulations in place to monitor older drivers are insufficient
Older drivers should be forced to retake the driving test when they are 66, a survey has suggested.
Three in five motorists said they would like to see pensioners retake the test, with the majority of 17-24 year olds believing the test should be retaken at the age of 63.
The Auto Trader survey showed that 73% of the 3,763 motorists who participated felt concerned when driving behind an older motorist.
More than a quarter said they felt unsafe when being driven by a driver over the age of 65.