Demerit Points & CTP Price


Hi John,

We spoke on air on Radio 2UE yesterday, and you asked me to contact you via the website. I wanted to know: Is it true that if you lose demerit points throughout the year, the Greenslip becomes dearer due to the demerit points lost?

Thank you,



Hi Trina,

This had me stumped, as you know. So it's a good question.

This morning I approached Reuben Aitchison from Suncorp about it. He's the Corporate Affairs Manager for personal insurance. Here's what he said:

"Good question on CTP and demerit points. It is a bit of a mix, depending on your insurer. Some in the market do take them into account in the 'risk-based' portion of pricing. In the NSW market, CTP is a hybrid approach, with the bulk of the price a flat amount, determined by what is known as Community Based pricing - i.e. everyone subsidises each other. The remainder is flexible and insurers take different approaches to how they rate it, with a mix of age, accident history and other insurances held (and tenure of that cover). In some cases, demerit points are taken into account. That flexible portion of the premium is roughly a range of about $200, so with the other factors in mind, demerit points are unlikely to make a huge difference in CTP greenslip pricing. Hope that's helpful."

So there you go, Trina - we've both learned something today. The good news is that, depending on your insurer, demerit point history will make either zero or a small difference to your greenslip pricing. So don't stress if you've copped one or two fines during the year.


John Cadogan