If you’ve recently received a speeding ticket, it’s important to understand how this will impact your car insurance premiums, especially here in New South Wales.
Beyond the court fine, your driving record takes a hit, and many insurance companies will consider this when setting your monthly premiums or yearly insurance premiums.
This article explains exactly how speeding tickets affect insurance in NSW, how demerit points impact your insurance premium, and what you can do to keep your costs down.
What are Demerit Points in NSW?
The NSW government uses a demerit points system to monitor driving offences, such as speeding, reckless driving, or running a red light. When you exceed the speed limit, you receive speeding tickets issued, accompanied by a set number of demerit points added to your licence.
- Minor speeding under 10 km/h over the limit gives you 1 point.
- Speeds between 10–20 km/h over result in 3 points.
- Higher speeding offences can carry 4 to 6 points.
- Accumulating 13 or more points leads to licence suspended status.
Demerit points stay on your record for 40 months from the offence date. During this period, your demerit point balance matters to insurance providers when you apply for car insurance or renew your car insurance policy.
You can check your current points anytime through your myServiceNSW account or by contacting Service NSW.
How Speeding Tickets Affect Insurance Premiums?
Insurance premiums are based on multiple factors, one of which is your driving history, including the number of demerit points you have. Most insurance companies see drivers with points as higher risk because statistically, they are more likely to make claims.
Studies and real premium costs show that:
- Drivers with zero demerit points enjoy the lowest premiums.
- Having 1 point can increase insurance premiums by approximately $50 to $100 annually.
- 3 points or more can raise CTP and comprehensive car insurance costs by $150 to $300 or more.
The exact rate increases depend on your insurance provider, the severity of the speeding offence, and other driving experience factors.
Some providers offer extra rewards or discounts for drivers with clean records, while others are less forgiving.
What are the Different Insurance Types and Their Response to Demerit Points?
- Compulsory Third Party (CTP) Insurance or green slips: State-regulated and affected directly by demerit points under the latest SIRA pricing rules. Drivers with points often pay higher premiums here.
- Comprehensive car insurance: While not regulated on point status, insurers often review your driving record and claims history which may indirectly penalize drivers with serious offences or suspended licences.
- Business vehicle insurance: Commercial vehicle insurance might have higher sensitivity to speeding tickets since commercial vehicles face greater scrutiny from insurers.
NSW Government and Service NSW: How Data is Shared and Monitored
The NSW Government runs the demerit points system within Transport for NSW. Data on every traffic offence is published and accessible by all insurance providers during price calculations.
- You can track your points online via your myServiceNSW account.
- NSW operates double demerit periods over holidays where points can be harsher.
- The system is linked to prevent drivers from hiding points when seeking cheaper insurance premiums.
Ways to Manage Insurance Costs After Receiving a Speeding Ticket
- Check your demerit point balance frequently through myServiceNSW account to understand where you stand.
- Shop around – Different insurance providers weigh points differently. Use Greenslips 4 Earth’s calculator to find the best fit.
- Consider enrolling in a defensive driving program. Some insurers offer small discounts, and they may influence renewal pricing.
- If close to the 40-month expiry of points, delaying your renewal or application might reduce costs.
- Be honest with your insurer about demerit points — failing to disclose can void claims.
Greenslips 4 Earth: More Than Just Insurance
At Greenslips 4 Earth, every policy you purchase also plants a native tree to offset carbon emissions. Whether your premium is rising due to points or not, your purchase supports NSW’s environment, a small but powerful way to give back.
Final Thoughts: Drive Safely, Save Money
Speeding tickets lead to fines—but the long-term impact on your car insurance premiums can be far costlier. Keeping a clean driving record and understanding how speeding tickets affect insurance lets you make smarter financial decisions.
Use Greenslips 4 Earth’s CTP insurance calculator to compare all six NSW insurers instantly and find competitive rates that reflect your real risk. Keep your licence clean, drive safely, and you’ll protect your wallet and the environment.
People also ask about speeding tickets and insurance
To help clarify the most common concerns NSW drivers have about demerit points and insurance premiums, here are some frequently asked questions that explain how your speeding tickets affect insurance and what you can do about it.
1. How do speeding tickets affect my car insurance premiums in NSW?
A speeding ticket impacts more than just the fine; it can raise your insurance premiums. When you get a ticket, you receive demerit points on your licence.
Insurance companies use your driving record to assess risk; the more points you have, the higher the perceived risk, causing premiums to rise. Whether you hold a clean licence or have several points, your demerit point balance directly influences what your insurance provider charges you.
2. How many demerit points does it take to affect my premium or cause a licence suspension?
Even one or two demerit points can increase your car insurance policy costs. Accumulating 13 or more points in NSW usually leads to a licence suspension, which will drastically increase your insurance premium or cause some insurance providers to refuse coverage altogether.
It’s important to monitor your points through your myServiceNSW account and be aware of how demerit points work within the system.
3. Do all insurance providers treat speeding tickets and demerit points the same way?
No, different insurance providers weigh speeding tickets differently. Some insurance companies may offer discounts for drivers with zero demerit points or those who complete defensive driving courses. Meanwhile, others factor in any traffic violations as a sign of higher risk and increase your premium costs accordingly. It’s wise to find car insurance by comparing multiple providers to see who offers the best rates for your individual driving history.
4. What can I do to minimise the impact of speeding tickets on my insurance premiums?
You can reduce the impact by staying aware of your demerit point balance and driving within speed limits. Completing a certified defensive driving course can sometimes lead to discounts.
Timing your insurance purchase to align with points expiring, and shopping around through services like Greenslips 4 Earth, can help you avoid paying unnecessarily high monthly premiums. Honesty about your points when signing up for insurance ensures your insurance coverage won’t be compromised.
