Do demerit points affect your car insurance?

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.

Provider	Price (with demerit points)	Price (with perfect driving record)	Difference
	$2,162.06	$1,380.29	$781.77
	Provider doesn't ask for demerit points	$1,157.22	N/A
	Provider doesn't ask for demerit points	$1,460.88	N/A
	Provider doesn't ask for demerit points	$2,603.05	N/A
	$2,743.08	$2,141.83	$601.25

Table updated January 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?

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.

• NSW: Check online via ServiceNSW
• WA: Check online via Transport WA
• QLD: Check online via Transport and Main Roads
• SA: Check online via mySAGOV
• NT: online via the NT GOV website
• TAS: only available via phone call; 1300 13 55 13.
• ACT: call Access Canberra on 13 22 81 or visit an Access Canberra Service Centre

Frequently Asked Questions

• Do demerit points affect insurance in Australia?

  Yes, demerit points can affect your car insurance in Australia. Insurers may ask if you've incurred any demerit points when calculating your premiums, as they can indicate higher risk.

• Does my driving history affect my car insurance policy?

  Yes, your driving history – including accidents, any previous claims and demerit points – are taken into consideration when you apply for an insurance policy and they can affect your car insurance policy and premiums. Generally, insurers want to know about accidents from the previous 3-5 years.

• Do demerit points transfer between states in Australia?

  Yes, demerit points can transfer between states in Australia. Offences committed in one state can affect your licence status in another.

Written by

Peta Taylor

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