Every Australian Driver Is Paying For Victoria's Car Theft Crisis
Melbourne, VIC — Victoria's car theft problem has become everyone's problem. A new Insurance Council of Australia report shows Victorian motor vehicle theft claims surged 25% in the past year, with insurers paying out $243 million in theft-related claims — more than every other state combined.
The response from insurers? Premiums are going up. Not just in Victoria.
The Scale Of What's Happening In Victoria
More than 32,000 vehicles were stolen in Victoria in 2025. A car is stolen or broken into every 42 minutes. Year-on-year, thefts are up 27.4% — and up 69.4% since 2019.
Up to a third of those thefts now involve electronic key cloning — technology that lets thieves copy a car's key signal and drive away in seconds, without touching the vehicle. No broken windows. No forced entry. Very little evidence.
Insurers are pushing through increases of more than 15% on Victorian comprehensive policies as loss rates deteriorate.
Why It Matters If You're In NSW Or Queensland
Comprehensive motor insurance is priced nationally. When claims costs spike in one state, the pressure moves across the system.
Victorian motorists are paying an average of $1,718 for comprehensive cover. NSW drivers are at $1,667. Queensland is $1,286. Those gaps narrow over time as insurers adjust rates everywhere. Brokers are already flagging that the Victoria effect is visible in national premium trends — and it won't reverse quickly.
The Trap This Creates For Not-At-Fault Drivers
Higher premiums push people toward bad decisions. When your comprehensive renewal goes up, there's pressure to keep costs down somewhere — including after an accident you didn't cause.
Going through your own insurer after a not-at-fault accident puts the claim on your record. It exposes you to your excess. In a rising-premium environment, any mark on your claims history gives your insurer grounds to justify the next increase.
If the other driver hit you, their insurer pays. Not yours. No excess. No claim on your record. No material for your insurer to point to at renewal.
Keeping Your Record Clean When Premiums Are Climbing
As comprehensive costs go up, every not-at-fault accident routed incorrectly through your own policy is money you shouldn't be spending. Contact a not-at-fault specialist before you call your own insurer. Get a like-for-like replacement vehicle at no cost while your car is repaired. Let the at-fault driver's insurer carry the bill.
Victoria's theft crisis is pushing costs up for drivers everywhere. What you can control is making sure the accidents that weren't your fault don't end up costing you anyway.
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