The report begins with a short description of the state of knowledge at present, and of the age-related functional impairments that affect car driving. Two explanatory models are described as to why accidents occur. After that, there is a discussion of what general principles should apply to simplify the task of driving. The main part of the report consists of a run-through of the research literature, focusing on the ability of older car drivers to observe and familiarise themselves in traffic. In that respect, results and conclusions/recommendations have been presented as regards how road junctions and roads should be designed, and how the design and location of signs, traffic signals and road markings should be executed in order that the requirements of older people may be satisfied. Because only the external traffic environment has been dealt with in this study, such things as vehicle design or intelligent transport systems (ITS) solutions in the vehicle itself are not discussed. In the concluding chapter, some design principles for roads and elements of the road environment are given, which can be read independently as the principles apply to all car drivers.