Jimeone Roberts' lawyer Thomas Smedley said his client has suffered with post-traumatic stress disorder since being stabbed in the neck in August 2022.
Roberts spent three weeks in a coma on life support and when he feels his related PTSD kicking in he wants to be in a safe quite space such as his car, the court heard.
The leader of the National Socialist Network was stopped by police for speeding at 83km/h in a 70km/h zone in April this year.
Checks by officers showed he was unlicensed at the time, but Roberts told police "as far as I'm concerned I'm not unlicensed".
He was pulled over again in July while still unlicensed, after serving a disqualification period.
Roberts told officers the licence "should be good to go" and that he had been pulled up on it a couple of times by police and chased it up with VicRoads.
He pleaded guilty on Wednesday to two charges of unlicensed driving.
Melbourne Magistrate Rosemary Falla said his actions were punishable by imprisonment, noting he was putting himself and all road users at risk by breaking the law.
"Until he develops insight into how he needs to change his driving behaviour he should not be on the road - he lost that privilege," she said.
She said a medical certificate provided to the court didn't mention his need to be in a vehicle as a coping mechanism for his PTSD and suggested he could sit in a parked car or the passenger seat instead of driving.
Roberts performed the Nazi salute again when he left court after being ordered to make a $500 donation to the court fund and complete a road trauma awareness course in the next 12 months.
Legislation is set to be introduced in Victoria to make it a criminal offence to perform a Nazi gesture or symbol in public, punishable by fines of more than $23,000 or 12 months in prison.
It is already an offence to display the Nazi swastika.
Tasmania became the first Australian jurisdiction to ban the Nazi salute last month.
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