Speed camera signs dropped: How it could hit you twice
Drivers don't just face extra fines. They're also at risk of increased insurance premiums and license suspensions.
Drivers are being warned about potential fines after the NSW government announced plans to scrap signs that signal a mobile speed camera ahead.
Over the next 12 months, warning signs will be phased out for mobile cameras but signs for permanent cameras will remain in place.
In NSW, drivers face fines of up to $3,762 for speeding, although that's only for those driving at least 45kmph over the limit. For drivers just 10kmph over the limit, the standard fine is $360. With state borders opening up and many families expected to drive over the Christmas break, the changes could also impact travellers from Victoria, Queensland and South Australia.
However, hefty fines aren't the only financial blow-back from a speeding ticket. Demerit points and licence suspensions can also push the price of car insurance up.
Paying the price for speeding
Most insurance companies adjust their premiums according to how many demerit points a driver has - the more demerit points, the higher the premium.
According to Youi, this is because demerit points are a good indication of a driver's safety and responsibility behind the wheel. More demerit points mean you're at higher risk of an incident on the road, which makes you more costly to insure.
It's no good lying either. If an insurance company asks you to disclose how many demerit points you have, you're bound by the duty of disclosure to answer honestly. Lie, and the company could later refuse to pay a claim or hold you accountable for the amount you owe.
The long-term cost of license suspensions
A license suspension is a quick way to push the price of your car insurance premium up. That's because you're then considered a high-risk driver - but it's not that hard to achieve.
In NSW, once you reach 12 demerit points, your license is suspended. However, if you're still a learner or P1 driver, any speeding offence will result in an automatic suspension.
Don't worry though, demerit points don't last forever. Generally, they only apply for three years from the date of the offence. Once expired, offences should be dropped from your driving record but it's worth double checking before you apply for insurance.
In the meantime, if you are battling against steep insurance premiums, the best thing you can do to reduce the price is compare policies online. You might be able to shave a few hundred dollars off the annual cost.
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This article was updated on 30 November 2020 to note the opening up of state borders.