Do demerit points affect your car insurance premiums?
If you see the flash of a speed camera as you drive past, you’re likely to receive a fine in the mail, but will you also end up paying more for car insurance? Some insurance companies may see you as a higher-risk driver if you rack up too many demerit points and may raise the price of your premiums or your excess as a result.
If you've accrued some demerits on your license, you’re not necessarily guaranteed to see your premiums go up. The decision ultimately lies with your insurer, and different insurers tend to view demerit points differently. Some may be less concerned by how many demerit points you have and more about whether they’ve led to your licence being suspended, disqualified, or cancelled.
How do car insurance companies treat demerit points?
Canstar contacted several major car insurance companies to ask how they treat demerit points when calculating premiums. Here’s what they told us:
- Allianz confirmed to Canstar that “[we don’t] collect demerit information from our customers, and therefore demerit points aren’t taken into consideration when pricing motor insurance policies.” However, demerit points are considered alongside your driving history when calculating CTP.
- IAG (whose brands include NRMA Insurance, CGU and more) also confirmed to Canstar that “demerit points are not a factor for comprehensive car insurance premiums.”
- QBE told Canstar that “we may take into account whether a driver has demerit points as part of our overall pricing/underwriting for car insurance. However, we don’t price based on the specific number of demerit points a driver has.”
- Suncorp, which includes brands such as AAMI, GIO, and Bingle, says that it “doesn’t count your demerit points”, though losing your licence could mean being classified as a high-risk driver and having an additional excess applied to your policy.
When calculating premiums, insurers also consider other risk factors such as a driver’s age, the type of vehicle being insured, and where it’s kept. Your claim history can also be a factor, with some insurers offering discounts to drivers that remain customers for a long time without making a claim.
Do demerit points affect CTP insurance?
In most states and territories, Compulsory Third Party (CTP) insurance is bundled into the cost of registering your car, and demerit points do not affect this expense. One notable exception exists in New South Wales (NSW), where CTP is known as a Green Slip insurance and is purchased separately. Here, demerit points can affect the price you pay.
Canstar looked at what difference demerit points can have on your CTP premium in NSW. As the following table shows, demerit points increase the average premium in the hypothetical example by over $200 – from $598 to potentially more than $808.
CTP premiums by demerit points in NSW
Demerit points | Average premium |
|---|---|
0 | $598.83 |
1 | $747.32 |
2 | $747.32 |
3 | $808.30 |
4 | $808.30 |
Source: Canstar – 18/03/2026. 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’re obtaining a quote for cover, you should tell them the truth. If you don’t and you need to make a claim, the insurer may refuse to pay it.
How do demerit points work?
It’s commonly said that you ‘lose’ demerit points, but that’s not true – you actually accrue them. All drivers in Australia start with zero demerit points and the more traffic offences you’re caught committing, the more points you’ll get, until you reach a limit.
When this happens, your licence may be suspended, or you could be given the option to serve a 12-month ‘good-behaviour’ bond in some states and territories. This can let you keep driving, but if you accrue additional demerit points during that period, you’ll have to serve a longer suspension than you otherwise would.
In most cases, if you accrue demerit points, you’ll also be hit with a fine. The size of these fines can vary between states and territories and depend on the offence committed. For example, using a mobile handset while driving will cost you $627 in Victoria.
Do demerit points expire?
In most states and territories around Australia, demerit points expire after three years. The exception is Victoria, where they remain on your licence for four years.
How do you 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 $30.80.
- 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.
