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Do Demerit Points Affect My Car Insurance?
Do Demerit Points Affect My Car Insurance?
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare car insurance policies the easy way
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Long story short
Demerit points are penalty points you get for committing traffic offenses
Some offences warrant a single demerit, while more serious ones can fetch you up to a whopping 10.
Full licence holders can cop up to 12 demerit points (13 in NSW) before getting benched
Demerit points can stick with you for three years (four in Victoria) but can remain on your record for longer.
You must inform your insurers about your demerit points, despite the potential premium hike
Comparing policies is one way to take the sting out of the higher car insurance costs.
What are demerit points?
Demerit points are penalty points you collect on your driver licence if you’re caught committing traffic offences. They were introduced in Australia in 1969 to encourage motorists to practice safe driving.
How do demerit points work?
Everyone starts out with no demerit points – and that’s how we like it! But say you get a bit too caught up singing along to the radio and slide past the speed limit? You might be given one or more (as well as a fine). Once you rack up a certain number of demerit points – known as your demerit point limit – your licence might be suspended.
Depending on your circumstances, the type of licence you have, and where you live, your demerit point limit can be two to 14 points. For drivers with unrestricted licences, the most common limit is 12 demerit points (or 13 if you’re in NSW).
What are some common reasons to get demerit points?
- Going above the speed limit
- Driving without your headlights and tail-lights at night
- Tailgating (no matter how much of a hurry you’re in!)
- Parking in a disabled space
- Improper or dangerous overtaking or passing
- Turning or stopping your car without signalling
- Making an illegal turn at an intersection
- Driving on the wrong side of the road or the wrong way on a one-way road
- Not wearing a seatbelt (applies to both driver and passengers)
- Using your mobile phone illegally while driving
Did you know?
The number of demerit points you get for a traffic offence can depend on the type and severity of the offence, such as how far above the speed limit you’re driving. The maximum number of demerit points you can get for a single offence is 10 – that’s for discarding a fire-risky object from a vehicle during a fire ban. Holy smokes, Billy Joel!
Do demerit points affect my insurance premiums?
Demerit points can hike up your premium – the more you collect, the higher it goes. But this depends on who you’re insured with. While some insurers may ask you about your demerit points, some may choose to look past them.
Do I have to tell my insurer about my demerit points?
If they ask, then yes. This usually happens when you’re getting a car insurance quote, along with other questions about existing car damage and your driving history.
Not disclosing your demerit points truthfully can land you in a tight spot if you need to make a claim. Your insurer may not pay in full (or at all) if you’ve provided them with the wrong information.
Do demerit points affect compulsory third-party (CTP) insurance?
In most states, demerit points don’t affect your CTP insurance. But there’s one notable exception: NSW. In that state, someone with three or more demerit points might have to pay almost $300 more per year to get a Green Slip insurance policy.
Helpful tip
Have your demerit points increased your car insurance premium? There are a few ways you might be able to save money on car insurance without compromising on coverage. If you don’t drive much, you might benefit from a pay as you drive policy, meaning that you pay a lower premium by agreeing to drive within a set number of kilometres over the policy term. And of course, a great way to make sure you’re on a good deal is to compare car insurance policies. We can help with that!
Adrian Bennett
General Manager for General Insurance
How do I check my demerit points?
You can check how many demerit points you have through your state or territory’s road transport authority:
When do my demerit points expire?
Demerit points don’t expire or reset until three years (or four years in Victoria) after the date the offence was committed.
If you accrue enough demerit points to have your licence suspended, you’ll have to wait until they expire to get back on the road. If you’re not sure how your demerit points affect your ability to drive, it’s best to check with your state or territory’s relevant authority.
How do I save on car insurance costs if I have demerit points?
Demerit points are a timely reminder to be a safe driver. No matter how you got them or how many you have, it’s never too late to pick yourself up, brush yourself off, and work your way back to zero.
To help you on your journey, you can use iSelect’s comparison tool to compare car insurance policies from a range of providers to try and save on car insurance costs. And if you find a policy you like, we can help set you up.
Get started on comparing car insurance policies!
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