7 mistakes that increase your green slip cost (and how to avoid them)

Nobody wants to increase the price of their green slip. Make sure you don’t make any of these 7 simple mistakes. That way you know you’re getting the cheapest green slip price for your circumstances.

7 mistakes that increase your green slip price and why

1. Get one or more demerit points

One way to pay far too much for your green slip is to get one or more demerit points.

Many people don’t realise this affects your green slip price for 3 years, not just this year. Why? Demerit points stay on your driving record for 40 months. 

We used the green slip calculator and found:

• With 1-2 demerit points, you could pay $300 (21%) more over 3 years.
• With 3 or more demerit points, you could pay $843 (58%) more – like buying nearly 2 more green slips!

So drive safely always to avoid mistakes and avoid demerit points completely.

2. Renew your rego over 21 days late

If you renew your registration 21 days or more after the due date, you have to register and buy a green slip for 12 months. This means you can’t spread the costs of your rego and green slip over the year.

• Average green slip cost is $658
• Rego is $82
• Average motor tax for SUV is $579 (1,505 to 2,504 tare weight)
• 12 months total is $1,319 (6 months total is around $660)

Don’t wait and have to pay more – renew your rego now. 

3. Let your rego lapse by over 3 months

If you let your registration lapse by over 3 months, it will be cancelled. It costs more to start a new registration than it does to renew an existing one.

For a new registration you have to:

• Register for 12 months – $661
• Buy a green slip – $686 (higher average price for first rego)
• Organise a blue slip – $80
• Get new number plates – $31
• Total cost of new registration – $1,458

Don’t make the mistake of waiting and paying more – renew your rego now. 

4. Drop your comprehensive or third party property insurance

If you drop other motor insurance, such as comprehensive insurance, your green slip is likely to cost more. Why?

• Insurers view someone driving an insured vehicle as lower risk than someone who does not insure their vehicle.
• Some insurers offer discounts on other types of insurance if you hold your green slip with them.

We used the green slip calculator for someone, 48, driving an insured Mazda CX5, compared to one uninsured:

• No other insurance held – $579 to $823
• With comprehensive insurance – $556 to $706
• Amount saved on green slip – $23 to $117

While you don’t have to buy other motor insurance, it covers property and can lower your green slip price.

5. Cause a road accident

If you have a road accident and it’s your fault, insurers view this as a sign of unsafe driving. Insurers examine all possible evidence to decide whose fault it was.

Insurers want to know if you had any at-fault accidents in the last 5 years and if so, 3 years, and if so, 2 years.

We used the green slip calculator for someone, 48, who caused an accident in the past 2 years, compared to someone who did not:

• Caused accident in past 2 years – $579 to $823
• Did not cause one – $556 to $706
• Amount saved on green slip – $23 to $117

Driving safely makes your green slip cheaper and protects you from all the stresses of causing an accident. 

6. Make a small, at-fault claim

Insurers see an at-fault claim as a sign of risk. If you have successfully made a claim before, it’s more likely you will claim again.

If you were at fault and make a small insurance claim, it may cost you more in the long term. We used the green slip calculator for someone who claimed on comprehensive insurance for a dent in their door.

• Their next green slip will cost $23 to $117 more for 3 years, then $15 to $110 more for the next 2 years.
• Extra green slip cost for making an at-fault claim – $99 to $571.

Consider whether it saves you money to make a small at-fault claim.

7. Renew with the same insurer

While it may be easier to renew with the same insurer as last time, this can be a big mistake. The cheapest insurer for you this year may not be the same as last year. Insurers change their prices, and you may changed your circumstances.

Here’s an example of someone who insured with Allianz last year but decided to drop their comprehensive insurance:

Last year

• Cheapest was Allianz for $556
• Second cheapest was GIO for $573

This year

• Cheapest is QBE for $579
• Second cheapest is Allianz for $816

While you may not see such a huge difference, you can save money by comparing insurers each time. Always use the green slip calculator to compare prices from all 6 insurers, so you know you’re getting the best price.