Getting insurance with a suspended license in Australia
You can still buy car insurance while your license is suspended, but you will pay more for it, and you will need to tell the insurer about the suspension before you buy the policy. Most insurers in Australia ask about license suspensions on their process form, and lying about it voids your cover — meaning the insurer can refuse to pay a claim later. The suspension itself does not make you uninsurable, but it does change what you pay and which insurers will take you on.
The key difference is that you cannot legally drive during the suspension period, so the insurance you buy is for a car you cannot use. Some people buy it anyway because they need cover for the moment the suspension ends, or because they own a car that someone else might drive. Others pause their insurance until the suspension is over. Both are legal options in Australia.
Key Takeaways
- You must tell your insurer about the license suspension when you explore, even if the form does not ask directly — failing to disclose it can void your entire policy.
- Premiums rise significantly after a suspension, often by 20 to 50 percent or more depending on the reason for the suspension and your insurer's risk assessment.
- Some insurers will not cover drivers with recent suspensions at all, so you may need to contact several companies or use a broker who works with high-risk insurers.
- You can legally pause your insurance during the suspension period and restart it when your license is reinstated, which may cost less than paying higher premiums for months you cannot drive.
- The suspension will remain on your driving record for several years, affecting your insurance costs even after your license is returned to you.
Why insurers charge more after a suspension
Insurers see a suspended license as a sign of higher risk. A suspension means you have already broken road rules seriously enough that the state removed your right to drive — whether for speeding, drink-driving, accumulating demerit points, or other offences. From the insurer's perspective, someone who has been suspended once is statistically more likely to have an accident or make a claim than someone with a clean record.
The premium increase depends on why your license was suspended. A suspension for accumulating demerit points over time usually costs less in extra premium than a suspension for drink-driving or dangerous driving. Your age, driving history before the suspension, and the insurer's own pricing model also matter. A 25-year-old with one suspension will pay more than a 50-year-old with the same suspension, because younger drivers already carry higher premiums.
Some insurers use automated systems that reject applications from anyone with a suspension in the last three to five years. Others assess each case individually. This is why shopping around — or using an insurance broker — matters: different companies have different thresholds for what they will and will not cover.
Telling your insurer about the suspension
When you fill out an insurance process, you will see questions about your driving history and any convictions or license suspensions. You must answer these honestly. The question might be phrased as "Have you ever had your license suspended or cancelled?" or "Do you have any driving convictions in the last five years?" — the exact wording varies by insurer, but the intent is the same.
If the form does not ask directly, you should still tell the insurer in writing before you buy the policy. Send an email or letter to the insurer stating the dates of the suspension, the reason for it, and any other relevant details. Keep a copy of what you sent. This protects you because it proves you disclosed the information, and it prevents the insurer from later claiming they did not know about the suspension.
Failing to disclose a suspension is called non-disclosure, and it is grounds for the insurer to cancel your policy or refuse to pay a claim. Even if you forget to mention it and the insurer does not ask, you are still liable. The insurer can investigate your driving record at any time, and if they find a suspension you did not mention, they can walk away from the claim.
Finding an insurer who will cover you
Start by contacting the major insurers in Australia — AAMI, Allianz, Westpac, IAG, and others — and asking whether they will insure a driver with a suspended license. Be upfront about the suspension: when it happened, why it happened, and when it ends. Some will say no when ready. Others will ask for more details or refer you to a specialist team.
If the major insurers decline, try smaller or specialist insurers that focus on high-risk drivers. These companies charge higher premiums but are more likely to take you on. You can find them by searching online for "high-risk car insurance Australia" or by contacting an insurance broker. A broker has relationships with multiple insurers and can submit your details to several at once, saving you the work of calling each one.
Be prepared to pay 20 to 50 percent more than you would have before the suspension, depending on the insurer and the reason for the suspension. Some insurers may also impose conditions — for example, they might require you to complete a defensive driving course, or they might exclude certain types of cover. Read the policy carefully before you buy it.
Pausing your insurance during the suspension
If you own a car but cannot drive it during the suspension, you have the option to pause your insurance rather than pay higher premiums for months you cannot use the vehicle. This is called a suspension of cover or lay-up, and it is different from cancelling the policy. When you suspend cover, the insurer keeps your policy on file and you can restart it later without reapplying.
To suspend your cover, contact your insurer and ask them to pause your policy for the duration of your license suspension. They will usually charge a small fee — typically $20 to $50 — and your premium will stop accruing. When your license is reinstated, you can call the insurer and restart the cover. The restart is usually quick, sometimes the same day.
Suspending cover makes sense if your suspension is short (a few months) and you do not need anyone else to drive the car. If someone else in your household needs to drive the car during your suspension, you cannot suspend cover — the car must be insured while it is being driven, regardless of who is behind the wheel. In that case, you will need to keep the policy active and pay the higher premium, or add another driver to the policy.
What happens when your license is reinstated
When your suspension period ends, you can drive again, but your insurance costs will remain higher for several years. The suspension stays on your driving record, and insurers can see it when you renew your policy or switch to a new insurer. Most insurers look back five years, so a suspension from five years ago may no longer affect your premium, but a suspension from two years ago will.
When you renew your policy after the suspension ends, tell your insurer that the suspension period is now over. Some insurers will automatically reduce your premium once enough time has passed; others will keep the higher rate unless you ask. It is worth shopping around at renewal time, because a different insurer might offer you a better rate now that the suspension is in the past.
If you suspended your cover during the suspension period, restart it as soon as your license is reinstated. Contact your insurer and ask them to reactivate the policy. You will need to pay the restart fee and the premium will resume at the higher rate, but at least you will be covered from the moment you are legally allowed to drive again.
Frequently Asked Questions
Can I drive someone else's car while my license is suspended?
No. A suspended license means you cannot drive any car, anywhere, regardless of who owns it or what the circumstances are. Driving while suspended is a separate offence and carries its own penalties, including fines and a longer suspension. If you are caught, you will face court action.
Will my insurance cover me if I drive while suspended?
No. If you drive while your license is suspended and have an accident, your insurer will refuse to pay the claim because you were breaking the law at the time. You would be liable for all costs yourself, and you would also face criminal charges for driving while suspended.
Do I need to tell my insurer when the suspension ends?
Yes. Contact your insurer as soon as your license is reinstated and let them know the suspension is over. Some insurers will automatically review your premium once the suspension is no longer current, but others will not. Telling them gives you the chance to ask for a premium reduction or to shop around for a better rate.
Can I get insurance from a different company to avoid the higher premium?
All insurers in Australia can access your driving record, so switching companies will not hide the suspension. Every insurer you approach will see it and will charge accordingly. The premium difference between insurers may be small — perhaps $50 to $100 — but all of them will charge more than they would have before the suspension.
What if I lie about the suspension on my insurance form?
If you do not disclose the suspension and the insurer finds out later — either when you make a claim or during a routine check — they can cancel your policy and refuse to pay any claims. You would also be committing fraud, which can lead to criminal charges. It is always cheaper and safer to be honest on the form.