Do demerit points affect your car insurance?

Yes, but there are ways around this.

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Peta Taylor

Updated

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Key takeaways

  • Demerit points often increase car insurance costs but some providers may not consider them.
  • Having demerit points could add hundreds of dollars to your premium with some insurers.
  • Demerit points typically affect your driving record for three years so check your history.

Why do demerit points affect your insurance?

Demerit points affect the cost of your car insurance premium because the more you incur, the more risky the insurer believes you are. This is based on the fact that demerit points are incurred for dangerous driving activities like texting while driving, speeding, aggressive driving and more. Therefore, in the eyes of the insurer, the more demerit points you have, the more likely you are to get into a car accident and make a claim, the more of a risk you are to insure.

How can I find a cheaper quote if I have incurred demerit points?

Our car insurance experts did some research to understand how demerit points affect the cost of your premium. We looked at 5 providers and found that; if the provider does ask about demerit points then it could cost you hundreds of dollars more. On the other hand, some providers don't ask about demerit points at all - so there's no additional cost. See the breakdown below.

5 of 5 results
Updated regularly
Price with demerit points Price with perfect driving record Difference
Provider doesn't ask for demerit points
$1,271.54
N/A
Get Quote View details
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$1,790.86
$1,147.64
$643.22
Get Quote View details
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QBE logo
QBE Comprehensive
$2,725.24
$2,127.87
$597.37
Get Quote View details
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NRMA logo
NRMA Comprehensive
Most Loved
Provider doesn't ask for demerit points
$1,888.01
N/A
View details
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AAMI logo
AAMI Comprehensive Car Insurance
Provider doesn't ask for demerit points
$1,450.08
N/A
View details
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Showing 5 of 5 results
Table updated April 2026

How long do demerit points 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

Sources

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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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