How your driving record affects your motor insurance

Updated: 09 Mar 2015
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Besides other factors like age and gender, your driving record will also affect your motor insurance premiums.

The driver's improvement point system (DIPS)

Under the driver’s improvement point system (DIPS), demerit points are awarded to motorists who have committed traffic violations on the road. The DIPS is designed to identify high-risk motorists or habitual traffic offenders, rehabilitate them through re-training, suspend them from driving and invalidate the licences of recalcitrant drivers.

When you accumulate 24 demerit points or more within 24 consecutive months, your driving licence will be suspended for 3 months.

If you have been suspended before, your licence will be suspended again when you accumulate 12 points within 12 months of your last offence. Each suspension can be as long as 3 years.

Where the suspension period is 1 year or longer, your driving licence will be invalidated. You have to re-sit and pass the driving tests before you can obtain a driving licence and drive again.

If you are holding a new driver’s licence that has been issued for less than 1 year, it will be revoked if

  • You accumulate 13 demerit points or more; or
  • You are caught twice for failing to display the probationary plate.

Note that you are not be allowed to drive or to book or take a driving test

  1. During your suspension;
  2. Within one year after your licence is revoked; or
  3. During your disqualification to drive by the court.

Incentives to improve your driving record

DIPS also encourages motorists to be safe drivers on the road through incentives.

  1. Removal of demerit points from driving record: If you avoid traffic offences with demerit points for 12 continuous months after your last traffic offence, all demerit points will be removed from your record.
  2. Cancellation of suspension records: If you avoid traffic offences with demerit points for 24 continuous months after your last traffic offence or after your last suspension expires, your previous suspension records will be cancelled.

For details on the DIPS system, please refer to the Traffic Police website.

Discounts in vehicle insurance

The certificate of merit (COM) is issued to drivers who maintain a clean driving record for 3 continuous years. The COM entitles you to a 5% discount on vehicle insurance premiums from participating insurance companies. This discount is over and above your no-claim bonus. You must not have any claim on your vehicle’ insurance for the past 3 continuous years.

Owners of all privately-owned vehicles, including buses and motorcycles, are eligible for the COM.

If you commit a traffic offence on any day in the 3 years immediately before buying your car insurance, you will not be eligible for a COM.

The list of participating insurance companies is available on the Electronic Police Centre.

Services & tools

Electronic Police Centre
Check your driver improvement points and your certificate of merit status.

Image of traffic junction used under GFDL licence.