It’s no secret that in 2026, car ownership costs are some of the most expensive necessities most Aussies have no choice but to pay.
And while some state governments, like Victoria, have introduced travel relief – such as free public transport and 20 per cent rebates on registration – insurance costs are usually among the most expensive bills.
Although insurance premiums depend on a range of factors, including a driver’s history, can demerit points actually impact your car insurance? Here’s what you need to know.
Do demerit points affect your car insurance?
Yes, demerit points can affect your insurance policies, though it depends on your insurer and your policy.
In the case of NRMA, a spokesperson for the insurance company confirmed it does consider demerit points when assessing insurance policies.
“Demerit points are considered for NRMA Insurance Compulsory Third Party insurance policies, along with many other contributing factors to determine an individual customer’s premium,” an NRMA spokesperson told Drive.
Similarly, Youi Insurance confirmed in November 2025 that it takes demerit points into account, though it did not specify which policies it would apply to.
According to Youi’s head of product for vehicles, Marni Jackson, “If you have accrued demerit points on your driver’s licence, that’s something that could increase your premium”.
“Generally speaking, when a driver has multiple demerit points, it can be an indication of repeated or serious offences, which increases the perceived risk and potential cost of providing them with insurance,” she said.
In New South Wales, demerit points can influence a motorist's Compulsory Third Party (CTP) – or green slip – insurance.
According to finance comparison site Canstar – which looked at how demerits can impact an NSW driver’s green slip – incurring demerit points can generally lead to an increase of approximately $200, from $598 to above $800.
Meanwhile, Suncorp Insurance – which owns other insurers such as AAMI, Gio and Bingle – said it does not consider individual demerit points when assessing premiums, only the driver’s licence status.
“If your licence has been suspended, disqualified or cancelled due to accruing too many [demerits], your driving history may be affected. This means you may become classified as a high-risk driver and have an additional excess applied to your policy,” Suncorp Insurance stated on its website.
While some insurers consider a driver’s demerit record, some companies reward motorists with a clean record.
In the case of ROLLiN' – an IAG-backed insurer – its Safe 'n Save program can lead to an insurance premium discount of up to 15 per cent off monthly premiums for drivers who score a sufficient ‘policy score’ that measures a driver’s behaviour such as rapid acceleration, harsh braking or mobile phone use.
Ethan Cardinal graduated with a Journalism degree in 2020 from La Trobe University and has been working in the fashion industry as a freelance writer prior to joining Drive in 2023. Ethan greatly enjoys investigating and reporting on the cross sections between automotive, lifestyle and culture. Ethan relishes the opportunity to explore how deep cars are intertwined within different industries and how they could affect both casual readers and car enthusiasts.
