Do speeding tickets affect car insurance?

The short answer is yes, speeding tickets do affect car insurance premiums. That’s because as well as a ticket, you will also accrue demerit points on your licence. If you’re a learner or P1 licence holder, your licence will be suspended for at least three months.
This is important information to know, but especially so for NSW drivers. A few months ago the NSW government made the decision to remove warning signs from mobile speed detection cameras. Since then, speeding fines in the state have risen from $400,000 per month to a huge $2.5 million per month, according to a report from 9News.
How do demerit points work?
The demerit points system is a fairly common way for authorities to rate drivers for recklessness on the road. In Australia a licence-holder will start off with zero points to their name, that’s good. However, if they are caught doing something illegal such as speeding, not wearing a seatbelt, running through a red light or a stop sign, they will receive demerit points.
Once you have accrued demerit points, you will usually have to wait three years for them to be removed. Generally speaking, the maximum you can accrue before your licence is suspended is 12. Although this can vary in different states and territories.
Why do demerit points affect car insurance?
Demerit points affect car insurance because they show your insurance provider that you are (or have been) a reckless driver in the past. For example, a speeding ticket shows an insurance provider that you may be prone to speeding, meaning there’s a higher chance that you could be involved in a car accident.
It’s also worth remembering that driving offences are offences for a reason. According to Transport for NSW , speeding is the most common cause of road fatalities in the state. So it’s understandable that insurance providers will want to review your driving history when determining the price of your premium.
Of course, the number of demerit points you have are just one factor that will affect what you pay. Others include how old you are, how long you have been driving, where you park your car at night and what the crime rate is like in your area. If all other factors are rosy looking, there’s a chance that your car insurance might not be too adversely affected by a past speeding ticket.
Lastly, car insurance premiums can vary significantly, depending on which provider you choose to go with. In Mozo’s 2020 Car Insurance Report, our research team found that the average annual premium difference between comparable policies was $902.
Think it’s time you reviewed your car insurance? Take a look at the policies on offer below, or head to Mozo’s compare car insurance page for more options.
Compare car insurance - last updated 18 February 2025
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Comprehensive Car Insurance
Yes costs extra
Agreed or Market
$400 - $2,500
Optional Extra
Making sure your car insurance is about where you’re at right now could save you lots. Start a quote with Youi today and see what you could save.
CompareCompareComprehensive Car Insurance
Making sure your car insurance is about where you’re at right now could save you lots. Start a quote with Youi today and see what you could save.
- Monthly premiums available
- Yes costs extra
- Agreed or market value
- Agreed or Market
- Choice of excess
- $400 - $2,500
- Choice of repairer
- Optional Extra
- Discounts available
- -
- Quote time
- -
Read reviews and learn more about Youi car insurance
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Mozo experts choice awards won:
- Exceptional Value Car Insurance - 2024
- Exceptional Value Young Driver Insurance - 2024
- Exceptional Value Senior Driver Insurance - 2024
Gold Comprehensive Car Insurance
Yes costs extra
Agreed or Market
$550 - $1,900 (varies by state)
Optional Extra
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
CompareCompareGold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- Monthly premiums available
- Yes costs extra
- Agreed or market value
- Agreed or Market
- Choice of excess
- $550 - $1,900 (varies by state)
- Choice of repairer
- Optional Extra
- Discounts available
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Read reviews and learn more about Budget Direct car insurance
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Comprehensive Car Insurance
Yes costs extra
Agreed or Market
$500 - $2,300
Optional Extra
CompareCompareComprehensive Car Insurance
- Monthly premiums available
- Yes costs extra
- Agreed or market value
- Agreed or Market
- Choice of excess
- $500 - $2,300
- Choice of repairer
- Optional Extra
- Discounts available
- Online discount $75 off new policies
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Read reviews and learn more about QBE car insurance
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Mozo experts choice awards won:
- Exceptional Value Car Insurance - 2024
- Exceptional Value Young Driver Insurance - 2024
Comprehensive Car Insurance
Yes
Agreed
$800 flat excess fee
No
No additional excess for young drivers, lodge a claim 24/7 and zero cancellation fees. Hire car is included up to $80 per day for up to 21 days; cover for one tow to our nearest authorised repairer, following a covered incident. No excess on your first covered windscreen, sunroof, and window glass damage once per insurance period. List multiple cars and drivers under the one policy as long as they fit the underwriting criteria (excludes Safe ’n Save policies).
CompareCompareComprehensive Car Insurance
No additional excess for young drivers, lodge a claim 24/7 and zero cancellation fees. Hire car is included up to $80 per day for up to 21 days; cover for one tow to our nearest authorised repairer, following a covered incident. No excess on your first covered windscreen, sunroof, and window glass damage once per insurance period. List multiple cars and drivers under the one policy as long as they fit the underwriting criteria (excludes Safe ’n Save policies).
- Monthly premiums available
- Yes
- Agreed or market value
- Agreed
- Choice of excess
- $800 flat excess fee
- Choice of repairer
- No
- Discounts available
- Get 10% off the base premium for the first 2 consecutive monthly policies and up to a 15% potential monthly discount from your 3rd month for being a safer driver. Minimum premiums may apply. T&Cs apply.
- Quote time
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Read reviews and learn more about ROLLiN' car insurance
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