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Can demerit points affect your car insurance?

By  AAMI

Racking up demerit points will cost you in fines, but could it also affect how much you pay for car insurance? Let’s take a look.

How do demerit points work?

Contrary to popular belief, you actually accrue demerit points, not lose them. All Aussie drivers start with zero demerit points; the more offences you commit, the more points you’ll get.

Your demerit point limit depends on where you live and what type of licence or learner permit you have. In New South Wales for example, drivers on an open or unrestricted license have a limit of 13 points in a 3-year period1, while in all other states and territories it’s 122. Check what the rules are in your own state or territory to be sure.

The number of demerit points you get for an offence depends on what you did and which state you did it in. If you get more demerit points than your licence type allows, your licence may be suspended, or you may need to serve a good driving behaviour period.

How do demerit points affect your car insurance?

Here at AAMI, your claims history determines your premiums, not demerit points. With an AAMI Comprehensive Car Insurance policy, you gain extra rewards and benefits for every consecutive year you drive safely with us and don’t make a claim that impacts your Safe Driver Rewards status.

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Insurance companies generally don’t base your premium on the number of demerit points you accumulate. However, if your licence is suspended as a result of having too many demerit points, that could increase your premium as you may be seen as a high-risk driver. Insurers determine risk differently, so speak with yours directly about how demerit points affect your car insurance.

Do I have to tell my insurer how many demerit points I have?

Your insurer will likely ask how many demerit points you've accrued or if you’ve ever lost your license, and you're bound by the duty of disclosure to answer honestly. If you don’t, your insurer may refuse to pay a claim.

How to check your demerit points

Unsure of how many demerit points you have? The process to find out differs by state:

  • NSW – Check your demerit point balance online using your MyServiceNSW Account.

  • VIC – Call 1300 728 977 or visit a VicRoads Customer Service Centre

  • QLD – Check your demerit point balance online.

  • ACT – To check how many demerit points you’ve accumulated you’ll need to apply to obtain your Licence History.

  • TAS – Contact Service Tasmania on 1300 13 55 13.

  • WA – Use the online demerit point enquiry tool to check details of demerit point penalties.

  • SA – Check your demerit point balance online using your mySA GOV account.

  • NT – Check your demerit point balance online or by phoning 1300 654 628.

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Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Read the Product Disclosure Statement before buying this insurance. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it. The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.

1 https://www.rms.nsw.gov.au/roads/safety-rules/demerits-offences/demerit-points/how-it-works.html

1 Based on information on each state and territory’s Department of Transport websites.