What Is a Rating 1 Driver in Australia?
In a Nutshell: Rating 1 is the best driver rating in Australia's former CTP rating system (still used in NSW and some states for historical context). It means you've been claim-free for at least 3 years and qualify for the maximum discount (up to 60%) on the CTP component of your insurance. New drivers start at Rating 6 (highest risk, lowest discount).
The CTP Rating System (Historical Context)
New South Wales and some other states previously used a 1–6 rating system for CTP insurance premiums:
| Rating | Driving History | Discount vs Premium | Annual CTP Cost (Example) |
|---|---|---|---|
| Rating 1 | 3+ years claim-free | Maximum discount | $450–$550 |
| Rating 2 | 2 years claim-free | Moderate discount | $500–$600 |
| Rating 3 | 1 year claim-free | Small discount | $550–$650 |
| Rating 4 | Less than 1 year claim-free | No discount | $600–$700 |
| Rating 5 | 1 at-fault claim in last 2 years | Loading applied | $650–$800 |
| Rating 6 | 2+ at-fault claims or high risk | Maximum loading | $700–$900+ |
How the Rating System Works
| Event | Rating Change |
|---|---|
| Start driving (new licence) | Start at Rating 6 |
| Each claim-free year | Improve by 1 rating (6 → 5 → 4 → 3 → 2 → 1) |
| One at-fault claim | Go back 3 ratings (e.g., 1 → 4) |
| Two at-fault claims in 2 years | Go back to Rating 6 |
| No-claims bonus protection | Your rating is protected for 1 claim per year |
💡 Time to achieve Rating 1: If you start at Rating 6 and remain claim-free, it takes 4 full years to reach Rating 1 (one year at each rating level).
Rating 1 vs Modern Insurance Rating
In 2026, most Australian insurers use modern risk-based pricing rather than the 1–6 grid. However, the concept survives in:
| Context | Still Uses Rating 1? |
|---|---|
| NSW CTP (green slip) pricing | ⚠️ Partially — most have moved to risk-based pricing |
| Older insurers' legacy systems | ⚠️ Some still reference it |
| General insurance education | ✅ Commonly explained as the "best driver" category |
| No-claim bonus systems | ✅ Equivalent to 60% NCB |
ℹ️ Modern equivalent: Rating 1 ≈ maximum no-claim bonus (50–60% discount).
How to Achieve and Maintain Rating 1
| Do | Don't |
|---|---|
| ✅ Drive safely and avoid accidents | ❌ Don't make at-fault claims |
| ✅ Maintain a clean driving record | ❌ Don't get demerit points (speeding, red lights) |
| ✅ Renew your policy annually | ❌ Don't drive without insurance |
| ✅ Use NCB protection | ❌ Don't claim for minor damage |
| ✅ Build years of claim-free history | ❌ Don't let your policy lapse |
What's the Rating 1 Discount Worth?
| Without Rating 1 (Rating 6) | With Rating 1 | Annual Saving |
|---|---|---|
| CTP component: $700 | CTP component: $450 | $250 |
| Comprehensive: $1,200 | Comprehensive: $700 (with max NCB) | $500 |
| Combined saving | $750 per year |
💡 That's $750/year saved just by maintaining a clean driving record for 4+ years. Over 10 years, that's $7,500 — just from being a safe driver.
Key Takeaway
- Rating 1 is the best driver rating — it means 3+ years claim-free with maximum discount.
- New drivers start at Rating 6 and improve 1 level per claim-free year.
- Takes 4 years to go from Rating 6 to Rating 1.
- One at-fault claim knocks you back 3 ratings (e.g., Rating 1 → Rating 4).
- Modern insurers have moved to risk-based pricing, but the concept still explains your no-claim bonus.
- Maintaining Rating 1 saves you $500–$800+ per year compared to a high-risk rating.
- Protect it with NCB Protection if you have a high discount.
Last updated: July 2026
Disclaimer: This article provides general information about the driver rating system in Australia. Specific rating systems and their application may vary between insurers and states. Check with your insurer for how they calculate discounts.