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KEY POINTS
- You receive demerit points when you break the road rules, with the number varying depending on the offence and the state or territory
- Different insurers consider demerit points differently when calculating your car insurance premiums.
- If you don’t tell your insurer that you have demerit points, they may choose to deny your claim.
Breaking the road rules can mean being penalised with demerit points. All Australian road users start with zero demerit points and can gain them for various offences such as speeding, running a red light, not wearing a seatbelt or using a mobile device while driving.
The number of demerit points you get depends on the offence and also varies between states. For example, using a phone while driving can get you between three and five demerit points.
The following table shows the demerit points you may receive in each state for selected traffic offences (not an exhaustive list):
Demerit points per state
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| Offences | NSW | SA | WA | QLD | VIC |
|---|---|---|---|---|---|
| Exceed speed limit by less than 10km/h (9km/h for WA and 11km/h for QLD) | 1 | 2 | 0 ($100 fine) | 1 | 1 |
| Exceed speed limit by 10km/h and over (9km/h for WA and 11km/h for QLD) | 3 | 3 | 2 | 3 | 3 |
| Exceed speed limit by 20km/h and over (19km/h for WA) | 4 | 5 | 3 | 4 | 3 (Above 25km/h, licence is suspended for 3 months and fine of $543 in place of demerit points) |
| Exceed speed limit by 30km/h and over (29km/h for WA) | 5 | 7 | 6 (Up to 40km/h) | 6 (Up to 40km/h) | 0 (Licence suspended for 3 months or more and fines of $642 or more) |
| Exceed speed limit by 45km/h and over | 6 | 9 | 7 | 8 | 0 (Licence suspended for 12 months and fine of $988) |
| Not stopping at a red light | 3 | 3 | 3 | 3 | 3 |
| Using a phone while driving | 5 | 3 | 3 or 4 | 4 | 4 |
Sourced from information available on state road authorities’ websites (04/07/24).
In most cases, you’ll be hit with a fine as well as demerit points. This also varies between states and territories and depends on the offence. For example, using a mobile handset while driving will cost you $593 in Victoria. If the matter is heard in court, the fine for illegal mobile phone/device use can be as large as $1,849.
Do demerit points affect your car insurance premiums?
What do demerit points mean for your car insurance premiums? The answer is not straightforward, as it varies from insurer to insurer. QBE, for example, takes demerit points into account when determining premiums. Demerit points aren’t the only consideration as QBE also considers other risk factors such as driver age, the type of vehicle and where it’s kept.
Allianz doesn’t calculate premiums based on demerit points, however, it does take licence suspensions into consideration; including those due to the loss of demerit points. If an individual loses their licence, Allianz may not provide cover at all or in the cases they do the individual would have to pay a higher premium.
Suncorp, which also includes brands such as AAMI, GIO and Bingle, takes a similar position. They use claims histories to help determine insurance premiums, not demerit points. Across many of their brands customers gain extra rewards and benefits for every consecutive year they drive safely and don’t make a claim (up to a cap). However, if their licence is suspended as a result of having lost too many demerit points, that could increase premiums and may result in them being seen as a high-risk driver.
IAG is another insurance provider that doesn’t take demerit points into account. Across their brands such as NRMA Insurance, CGU, SGIO, and SGIC, they don’t consider a customer’s demerit points when calculating car insurance premiums. NRMA Insurance, however, does consider demerit points when determining CTP insurance premiums.
NSW Compulsory Third Party Insurance
One type of insurance that is generally affected by demerit points is Compulsory Third Party (CTP) cover in New South Wales (NSW) – also known as a Green Slip. It protects you against compensation claims if you cause a road traffic accident that results in the injury or death of another person. CTP insurance is legally required to register a car in Australia. It’s an included cost of vehicle registration in many states, but in NSW motorists pay for it separately.
Canstar looked at what difference demerit points can have on your CTP premium. As the following table shows, demerit points increase the average premium in the hypothetical example by over $100 – from $521 to $725 or higher.
CTP premiums by demerit points in NSW
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| Demerit points | Average premium | Difference |
|---|---|---|
| 0 | $521 | 0 |
| 1 | $625 | $50 |
| 2 | $625 | $50 |
| 3 | $702 | $50 |
| 4 | $702 | $50 |
Source: www.canstar.com.au – 29/04/2025. Based on the NSW Government Green Slip Price Check tool. Quotes obtained for a Honda Civic with two drivers in their 40s residing in the Parramatta area with a history of no prior insurance claims. Other questions are considered in the quoting engine that have not been listed here.
Do you have to tell an insurance company how many demerit points you have?
If an insurer asks you how many demerit points you have or whether your licence has ever been suspended when you are obtaining a quote for cover, you must tell them the truth. If you don’t and you need to make a claim, the insurer may refuse to pay it.
How to check your demerit points
If you aren’t sure if you have any demerit points or know that you do but don’t know how many, you can double-check. Here are the details for each state and territory:
- Queensland: You can check online through Transport and Main Roads (TMR) or with a Queensland Government (QGov) account.
- New South Wales: You can check your demerit point balance online. You’ll need a MyServiceNSW Account.
- ACT: You will need to apply for your licence history. You’ll need to complete the appropriate form, provide two forms of identification and also pay a fee of $29.70.
- Victoria: You can check online if you have a myVicRoads account. You can also check by calling 1300 728 977 or visiting a VicRoads Customer Service Centre and bringing proof of identification.
- Tasmania: Call Service Tasmania on 1300 13 55 13 and provide your licence details.
- South Australia: You can check online but you’ll need a mySAGOV account.
- Western Australia: You can check online. You’ll need to enter your date of birth, licence number and its expiry date.
- Northern Territory: You can check online. You’ll need your licence number, licence card number and MVR customer ID number. You can also call 1300 654 628.
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