Do demerit points affect your auto insurance premiums?


So you got a speeding ticket or a red light and therefore have demerit points – will this affect your insurance? We take a look.

Breaking the rules of the road can result in demerit points being penalized. All Australian drivers start with zero demerit points and you earn them for various offenses such as speeding, red light, not wearing a seat belt or using your phone while driving.

The number of demerit points you get depends on the offense and also varies from state to state. The table below shows the demerit points you can earn in each state for selected traffic violations – this is not a comprehensive list. As you can see, using a phone while driving will earn you between three and five demerit points depending on the condition.

Demerit point by state

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Traffic offense New South Wales CIV Washington QLD HER
Exceed the speed limit by less than 10 km / h (13 km / h for QLD) 1 1 0 ($ 100 fine) 1 2
Exceeding the speed limit of 10 km / h (13 km / h for QLD) and more 3 3 2 3 3
Exceeding the speed limit by 20 km / h or more 4 3 or 0 (Above 25km / h, license suspended for 3 months and fine of $ 500 instead of demerit points) 3 4 5
Exceeding the speed limit of 30 km / h or more 5 0 (License suspended for 3 months or more and fines of $ 591 or more) 6 6 (up to 40 km / h) 7
Exceeding the speed limit of 45 km / h and more 6 0 (License suspended for 12 months and fine of $ 909) 7 8 9
Don’t stop at a red light 3 3 3 3 3
Using a phone while driving 5 4 3 or 4 4 3

Obtained from from state road authorities.

In most cases, you will also be fined as well as demerit points. Again, this varies between states and territories and depends on what you’ve done. For example, using a mobile phone while driving will cost you $ 545 in Victoria. But what do demerit points mean for your auto insurance premiums?

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Do demerit points affect your auto insurance premiums?

The answer to this question is not simple because it varies from one insurer to another. QBE and Youi, for example, both factor in demerit points. “QBE takes demerit points into account when determining premiums for our auto insurance products sold directly or through selected partners,” a QBE spokesperson told Canstar. And Youi’s PR manager, Belinda Zordan, said, “Good behavior pays off at Youi and as such bonuses can be affected when demerit points are earned. “

Allianz does not calculate bonuses based on demerit points, however, it does take into consideration license suspensions, including those due to loss of demerit points, a spokesperson for Allianz Australia said. “This means that if someone has recently lost their license due to losing all of their demerit points, we would not provide them with coverage or they will be required to pay a higher premium due to the suspension of the license. allowed, “said the spokesperson.

Suncorp, which also includes brands such as AAMI, GIO and Bingle, takes a similar stance. “We use your claim history to determine your insurance premium, not demerit points. In many of our brands, including AAMI, Suncorp and GIO, you get additional rewards and benefits for each consecutive year you drive safely and don’t make a complaint, ”said a Suncorp spokesperson. “However, if your license is suspended due to too many demerit points, it could increase your premium as you could be considered a high risk driver.”

A spokesperson for Poncho said, “Poncho does not ask questions about demerit points or consider them when customers quote us.”

IAG is another insurer that does not take demerit points into account. “In our IAG brands such as NRMA Insurance, CGU, SGIO and SGIC, we do not take into account a customer’s demerit points when calculating auto insurance premiums,” said a spokesperson for IAG in Canstar. The spokesperson added, however, that NRMA Insurance takes demerit points into account when determining CTP insurance premiums. (See next point)

Compulsory third party insurance NSW

One type of insurance that is commonly affected by demerit points is Compulsory Third Party Coverage (CTP) in New South Wales – also known as green slip. It protects you against compensation claims if you kill or injure someone in a traffic accident. CTP insurance is legally required to register a car in Australia. This is an included cost of vehicle registration in most states, but in New South Wales motorists pay it separately.

Canstar has looked at the difference demerit points can have on your CTP bonus. As the table below shows, one demerit point increases the average premium in the hypothetical example by $ 116 – from $ 495 to $ 611.

CTP rewards by demerit points in NSW

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Demerit points Average premium Difference
0 $ 495
1 $ 611 $ 116
2 $ 629 $ 19
3 $ 668 $ 38
4 $ 689 $ 22

Obtained by on 08/23/2021 via the NSW Government Green Slip Price Check tool. Quote obtained for a Honda Civic with two drivers in their 40s residing in the Parramatta area with a history of no prior insurance claim. Other questions are taken into account in the quote engine that have not been listed here.

Do you have to tell an insurance company how many demerit points you have?

If the insurer asks you how many demerit points you have or if your license has already been suspended when you get a coverage quote, you need to tell them the truth. If you don’t, the insurer may refuse to pay a claim.

How to check your demerit points

If you’re not sure you have demerit points or know you have demerit points, but don’t know how many, you can recheck. Here are the details for each state and territory.

Queensland: You can verify in line via Transport and Main Roads (TMR) or with a Queensland Government account (QGov).

ACT: You will need to request your License history. You will need to complete the appropriate form, provide two pieces of identification and also pay a fee of $ 26.90.

Victoria: You can check online if you have a myVicRoads account. You can also check by calling 1300 728 977 or going to a VicRoads customer service center and bringing some ID.

Tasmania: Call Service Tasmania on 1300 13 55 13 and provide your license details.

North territory: You can check your demerit points in line. You will need your license number, license card number, and MVR customer identification number. You can also call 1300 654 628.

Cover image source: Jakub Krechowicz /

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