When working out your premiums, insurance companies take in account a wide range of factors, including age, gender and of course your driving record. If you’ve made a claim in the previous five years, your premiums are going to be higher than a driver with a perfect driving record.
But in many cases that’s not the only determining factor. Many insurers also assess your driving record by looking at the current level of your demerit points and if you’ve had your license suspended in the last 3-5 years. The demerit point system works differently in each state and as such can get a little
The demerit point system works differently in each state and as such can get a little confusing. Generally speaking, all drivers start out with zero demerit points and if they have an infraction on the roads, accrue demerit points. If they reach a certain level of points, usually that’s around 12 for most states, then they face losing their license for a certain period of time.
This is the type of information that insurance companies want to know, because of the nature of the fines, it’s often a good indication of the type of driver you are.
Some of the common ways you can lose demerit points are through speeding, not wearing a seatbelt, talking on a mobile phone or violating any traffic, road or safe driving rules. If you’ve had your license suspended in the previous 3-5 years, expect to pay a higher
|Licence Type||Average Demerit Points before Suspension|
|Full / Unrestricted||12-13|
|Unrestricted with good behaviour period||12|
Do you have to tell your insurer about your current level of demerit points?
When giving information to any insurance company you’re bound by the duty of disclosure. If you fail to answer honestly, you potentially face your insurer not paying out your claim or having it significantly reduced.Along with
Along with alcohol-related offences, there are also certain speeding offences that lead to automatic suspension of your license that includes:
- Driving more than 30km per hour above the speed limit
- Driving more than 130 km per hour in a 110km per hour zone
Remember the best way to reduce your premiums is to simply slow down and drive safely.
Tips to reduce your demerit points:
- Drive carefully on long weekends. In most states in Australia, holiday periods incur double demerit points. For example, if you were caught speeding 10 km over the speed limit, you might face 8 demerit points instead of 4.Remember demerit points go away over time. While they are always on your driving
- Remember demerit points go away over time. While they are always on your driving record, your demerit point tally, generally gets reduced, three years after the infraction. So you still have the ability to turn around a poor driving record.Don’t break the rules when you’re interstate. Even though the demerit point system.
- Don’t break the rules when you’re interstate. Even though the demerit point system works on a state by state basis, demerit points are meant to be transferred over by the authorities. So next time you’re on a trip across the border, drive carefully.
- Be careful overtaking on country roads. Country roads in Australia have a 110km per hour speed limit. If you’re overtaking and are caught travelling at 130km per hour or more, you face immediate suspension.