In Australia, a single speeding ticket can add hundreds of dollars to your car insurance premium the next time you renew. One 2025 comparison found a driver with multiple at-fault claims could face a comprehensive premium of around $2,554, while a driver with a clean record paid roughly $1,611 — a difference of nearly $1,000 a year. That gap isn’t just about accidents. It’s about the demerit points sitting on your driving record and how insurers interpret them.
Here’s what you actually need to know about how driving offences reshape your insurance costs — and what you can do about it.
How Demerit Points and Driving Offences Affect Your Premiums
What I tend to notice is that most drivers don’t realise how differently insurers treat demerit points. Some ignore them entirely unless you’ve lost your licence. Others build them into every quote. That variation matters more than most people expect.
Why Insurers Care About Your Driving Record
Insurers price policies based on risk. A driver with demerit points has, statistically, a higher chance of making a claim. That’s the simple logic behind higher premiums. But the way insurers apply that logic varies a lot. Some use demerit points as a direct pricing signal. Others only consider them if they’ve led to a licence suspension or disqualification. A few — like QBE, Allianz, and IAG brands — don’t use demerit points in their pricing models at all, according to Canstar’s analysis.
Consider a driver in New South Wales with demerit points on their record. Their Compulsory Third Party (CTP) insurance — the “Green Slip” — can increase noticeably. One hypothetical example showed a rise from $598 to $808 or higher. That’s a 35% jump from a few points. And that’s just the CTP component. Comprehensive cover can climb even more.
Young or inexperienced drivers feel this most sharply. Moving from a P1 to a P2 licence can reduce premiums, and risk levels tend to drop over time with a clean record. But a single offence during those early years can lock in higher rates for years.
Where Drivers Get Tripped Up
Assuming all insurers treat points the same way
This is the most common mistake. Drivers with a few demerit points often assume every insurer will hike their premium. In reality, some insurers don’t factor points into pricing at all. The trick is knowing which ones. Shopping around matters more than most people think. A driver who only checks one or two quotes may overpay by hundreds simply because they didn’t ask the right insurers.
Failing to disclose offences on the application
When you apply for car insurance, the form will ask about your driving history. If you’ve had a recent offence, you need to declare it. Some drivers skip this, hoping the insurer won’t find out. But insurers can check your record when you make a claim. If they discover an undisclosed offence, they can refuse to pay out. That leaves you covering the full cost of an accident yourself. The savings from hiding a ticket are never worth the risk.
Not understanding the three-to-five-year review window
Demerit points stay on your driving record for at least three years. But insurers often look back three to five years when assessing your risk. That means a single offence from four years ago could still affect your premium today. Many drivers assume points disappear the moment they’re cleared from the official record. That’s not how insurance works. The insurer’s review window is separate from the demerit point expiry.
Ignoring the impact of multiple claims
Multiple at-fault claims in a short period can keep you in a high-risk category even if individual claims weren’t your fault. Insurers look at patterns, not just isolated incidents. A driver with five at-fault claims in three years may find only one insurer willing to provide coverage. That limited competition means higher premiums and fewer options.
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| Offence Type | Typical Demerit Points | Potential Premium Impact |
|---|---|---|
| Low-level speeding (under 10 km/h over) | 1–3 | Minor increase; some insurers ignore |
| Mobile phone use while driving | 3–5 (varies by state) | Moderate increase; may trigger higher excess |
| High-speed violation (30+ km/h over) | 6+; possible suspension | Significant increase; limited insurer options |
| DUI or dangerous driving | Varies; often suspension | Major increase; some insurers may decline cover |
How to Check Your Record and Improve Your Insurance Profile
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Check your demerit points online
Before you shop for insurance, know what’s on your record. Each state and territory has its own online portal. In Queensland, for example, you can check your demerit points through the Transport Department’s website. Other states have similar systems. This takes five minutes and gives you a clear picture of what insurers will see. If you find errors — and they do happen — you can dispute them before they affect your premium.
Compare insurers that don’t price on points
Not all insurers use demerit points in their pricing. QBE, Allianz, IAG (which includes NRMA and CGU), and Suncorp (which includes AAMI, GIO, and Bingle) are among those that don’t, according to Canstar. If your record has a few points but no licence suspension, these insurers may offer better rates. The key is to compare multiple quotes and ask directly how each insurer treats demerit points.
Build a clean record over time
Insurers typically review the last three to five years of driving history. Every year without a new offence improves your risk profile. Young drivers on P1 or P2 licences see premiums drop as they move to full licences and build a clean record. The math is simple: fewer points over time equals lower premiums. A car insurance comparison tool can help you track which insurers offer the best rates as your record improves.
Consider higher excess to offset premium increases
If your premium has jumped after an offence, raising your excess can bring the monthly cost back down. This means you pay more out of pocket if you make a claim, but the insurer takes on less risk. It’s a trade-off worth weighing
