What demerit points really cost you

The real cost of having demerit points on your licence is higher than you think. Did you know each demerit point you incur lasts for 40 months? This means you could reach the limit and lose your licence. You could also pay up to a third more for your greenslip for 3 years.

How you incur demerit points

The idea of demerit points is to discourage irresponsible or unsafe driving. They apply to all kinds of common offences, such as speeding, double parking, mobile phone use and running red lights:

TfNSW provides a full list of all offences that incur demerit points.

The number of demerit points you receive depends on the offence, your licence and whether or not it’s in a school zone.

How many demerit points before losing your licence

Some people say they ‘lose points’ but, in fact, they ‘add points’ to their licence. Every driver starts off with zero points on their licence. You accrue demerit points with each offence up to a threshold within a 3-year period. This period is measured from the first to the last offence.

Most drivers on a full licence are suspended if they incur 13 or more demerit points in that period. Read more about suspension in our previous blog on demerit points.

Demerit points stay on your record

Demerit points stay on your driving record for 40 months. After 40 months, the demerit points come off your total but the offences remain on your record.

Note: The NSW government has extended a 12-month trial for motorists who had at least one demerit point on 17 January 2024. If they maintain a clean record for 12 months to 16 January 2025 (not 3 years as usual) one demerit point will come off their licence.

Demerit points affect your greenslip price

Demerit points always affect the price of your green slip. Some vehicle owners could save over $300 each year on their greenslip premium if they have no demerit points. This is a saving over 3 years of $900!

For our example, we used the greenslips.com.au Calculator for a woman, 45, with an insured Rav4 in the metro area with 0-3 or more demerits (no other offences) at 1 July 2024.

Greenslip price range and average price with demerit points

• Even with only 1 demerit point, you can pay up to $739 for a greenslip.
• This is $307 more than the cheapest greenslip with no demerit points ($432).

Demerit points really cost you in the impact they have on greenslip prices over 3 years:

Total 3-year cost based on cheapest greenslip price

• With any demerit points, you could pay from $420 or a third more for your greenslip over 3 years.
• For some people, this is equal to the price of buying another green slip.

It literally pays to drive safely. Use the greenslips.com.au Calculator to compare prices.

Demerit points affect your life

Demerit points really cost you because they stay on your record for 40 months:

• You could pay at least 33% more for your green slip in that period.
• You may also pay extra for comprehensive or third party property insurance.

Your licence will be suspended for a period of months if your demerit points go over the thresholds set:

• 13 to 15 points – 3 months
• 16 to 19 points – 4 months
• 20 or more points – 5 months.

Having a suspended licence may also affect your ability to work or carry out family duties.

Save money with the greenslips.com.au Calculator

If you’re uncertain how many demerit points you have, check them online.

Our in-house research shows:

• 68% of visitors to the greenslips.com.au Calculator during 2023 were able to save money because they had no demerit points.
• Just over 20% of visitors had 1 to 4 demerit points and could be paying extra for their green slip for 3 years.

Learn more about what demerit points really cost. https://www.greenslips.com.au/demerit-points.html

Get a quote for your cheapest green slip here.