Do demerit points affect your car insurance?

It depends on the insurer and if they ask about demerit points or not.

Alexandra Koster's headshot
Peta Taylor's headshot

By

Alexandra Koster

&

Peta Taylor

Updated

Car Insurance

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Our insurance experts got quotes from 5 popular car insurance providers. Of that, 3 didn't ask about demerit points at all leaving the premium unaffected. The remaining 2 that did ask about demerit points showed that price can vary by as much as $800 for those with a clean driving record versus those without.

Why do demerit points affect your insurance?

Demerit points matter because insurers base your policy cost on a range of factors, including things like age, gender and driving history. The more likely you are to get into an accident based on past behaviour, the less willing they are to insure you as the chances of you claiming are higher. Since demerit points are earned by doing dangerous things like speeding or texting and driving, insurers use them as just another piece of the puzzle when determining how well you actually drive, which affects the cost of what they'll offer you.

How long do they affect your insurance?

Generally, demerit points last for three years from the date of the offence. In some cases, offences from more than three years ago may still apply because it can take time for the relevant state government to be informed of the offence (for example, if a court case is involved). Once expired, offences should be dropped from your driving record and therefore no longer affect any premiums. It's important to always make sure your driving record is up-to-date and correct before applying for auto insurance to avoid incorrect charges.

Finder survey: How many Australians have accrued demerit points for a driving offence?

Response
Yes50.89%
No47.51%
I have never driven before1.59%
Source: Finder survey by Pure Profile of 1006 Australians, December 2023

How to check demerit points

If you're worried about your own driving record and how many demerit points you may already have, you should be able to find out online.

Frequently Asked Questions

Alexandra Koster's headshot
Publisher

Alexandra Koster was Finder's publisher for car, home and pet insurance. She has a Tier 1 certification in General Insurance, as well as a Bachelor of Arts in Film and Cultural Studies from the University of Sydney. Her hobbies include reading Product Disclosure Statements and deciphering complicated insurance lingo to help people save on their insurance so that they can spend their money on better things – like dogs. See full bio

Peta Taylor's headshot
Co-written by

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio

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