Your driving record affects your greenslip price

The way you drive is an important factor in the price of your green slip. Do you know what type of driver insurers consider to be a good driver? We look at how much your driving record affects your greenslip price.

Are you a good driver?

Do you fit the broad definition of a “good driver”? Good drivers are usually over 30 and tend to have more driving experience. They have no demerit points, traffic offences or insurance claims. They also drive reasonably up-to-date, insured vehicles with safety features.

Even so, people who don’t fit that definition can also be good drivers and qualify for cheaper greenslips.

How to get an accurate green slip quote

To provide an accurate quote for a greenslip, insurers ask about your driving record and claims history:

• Number of demerit points on your licence (and licence of any other drivers)
• Road accidents in the last 2-5 years that were your fault
• Any drivers licence suspensions, disqualifications, cancellations or restrictions in the last 3 years
• If so, any drug and alcohol convictions in the last 3 years.

Insurers have their own ways of pricing these factors. The best way to find out who offers the cheapest green slip price for your driving history is to use the greenslips.com.au Calculator.

Do you have demerit points on record?

Some people say they “lose” points on their licence. In fact, everybody starts off with zero demerit points. You accumulate demerit points on your licence with each offence. If you reach 13 points within a 3-year period, your licence will be refused or suspended.

The NSW government recently began a 12-month trial for motorists with at least one demerit point on 17 January 2023. If they maintain a clean record for 12 months to 17 January 2024 (not the usual 3 years), one demerit point will come off their licence.

Demerit points apply to all kinds of common offences, such as speeding, parking, mobile phone use and running red lights:

• Speed up to 10 kph over the limit: 1 point
• Speed 10-20 kph over: 3 points
• Fail to stop at red light: 3 points
• Speed 20-30 kph over: 4 points
• Use mobile phone while driving: 5 points.

Insurers treat demerit points on your record as a sign of your potential risk of having an accident and making a claim. Some charge a much higher price for even one demerit point, while others charge more for a few demerit points. The best way to check is to use the greenslips.com.au Calculator.

Example

We used the greenslips.com.au Calculator for a woman, 45, with an insured station wagon in the metro area, with 0-3 demerit points at 1 July 2023.

In this case, the highest greenslip price for only 1 demerit point was $733. This is $304 (71%) more than the cheapest greenslip price without demerit points ($429). It pays to compare green slip prices.

Road accidents that were your fault

If you have had any at-fault accidents in the last 2-5 years, insurers need to know. This is an indication you may have been driving unsafely and made a claim.

Whether or not you were at fault is not always obvious. The law says at fault means you were 100% at fault or your contribution to the accident (contributory negligence) was more than 61%.

The price of your greenslip (see example below) will increase if you had an at-fault accident in the past 2-5 years. However, this will cease to affect the price as time passes without another accident on your record.

Do you have a clean licence?

Insurers ask if you had any drivers licence suspensions, restrictions, cancellations or disqualifications in the past 3 years:

• Suspension – Temporary loss of licence for a fixed period.
• Restriction – Licence conditions, such as driving within a certain distance or only at certain times of day.
• Cancellation – If a licence has lapsed for over 2 years, or police confiscate your licence or you surrender your licence.
• Disqualification – Imposed by the court.

If any of these apply in the last 3 years, insurers ask about any convictions or fines for drug or alcohol-related driving. Remember, you can be stopped at any time for random breath testing (RBT) and mobile drug testing (MDT) on NSW roads. See The danger of pot and booze together.

How can I get a cheaper green slip?

If you are a “good driver”, you should get the cheapest green slip prices. If not, there are ways to reduce the price of your green slip by knowing how insurers set prices. For example:

• Avoid getting further demerit points.
• Buy comprehensive or third party property insurance.
• Don’t make minor motor insurance claims.

The best way to check green slip prices is to use the greenslips.com.au Calculator.

Example

We used the greenslips.com.au Calculator for a woman, 45, with a station wagon in the metro area who was a good driver or had no other insurance or 1 demerit point or a recent at-fault accident or all three at 1 July 2023.

While average green slip prices varied, the highest greenslip price was around $736 in each unfavourable case. This was $307 (72%) more than the lowest greenslip price for a good driver. It pays to compare green slip prices.

Can I get greenslip discounts for good driving?

It’s natural to expect discounted green slips for good driving. In fact, your green slip is already discounted on the basis of favourable risk factors. For example, if you have no demerit points on record and haven’t made a recent claim on your insurance, insurers will apply discounts on your green slip.

However, insurers can’t offer any further discounts as long as your greenslip price is based accurately on you and your vehicle. No matter where or how you purchase your green slip, prices should be the same for the same information. Agents or brokers can’t offer a lower price than the one quoted by the insurer.

Green slip prices can’t be discounted on the basis of product bundling. However, insurers can offer discounts on their other insurance policies if you also hold a green slip from them. Some offer multipolicy discounts – but the discount is not on the greenslip itself.

Get the cheapest price guaranteed.