Victoria’s motor vehicle theft crisis has reached a tipping point, with new data revealing the state is moving in the opposite direction to the rest of Australia as insurers grapple with a 25% surge in theft claims.
Fresh analysis from Insurance Statistics Australia (ISA), released today by the Insurance Council of Australia (ICA), has exposed a widening gulf between Victoria and every other mainland state. While Queensland, Western Australia and South Australia have driven down motor theft claims by double-digit percentages, Victoria’s problem has accelerated sharply — leaving insurers to absorb a $243 million hit across more than 12,500 claims in 2025.
“A car is stolen or broken into every 42 minutes in Victoria," said ICA CEO Andrew Hall. "This level of crime is not acceptable,”
The numbers paint a sobering picture for Victorian insurers and brokers. Incurred costs have jumped 37% year-on-year, with metropolitan Melbourne bearing the brunt of the crisis. Metro regions alone recorded 10,400 claims totalling $205 million—up 30% by volume and 42% by value compared to 2024.
Victoria’s $243 million theft bill now exceeds the combined total of all other states analysed in the ISA data, which covers Queensland, New South Wales, South Australia and Western Australia.
The contrast with the rest of the country is stark. Western Australia slashed motor theft claims by 15%, South Australia by 14%, and Queensland by 12% — the latter marking the Sunshine State’s largest percentage decrease on record. New South Wales remained relatively flat, with claims down 1.6% after a 3.7% rise the previous year.
Nationally, motor theft claims inched up 2.5% to 29,000 in 2025, with total incurred costs hitting $485 million. Strip Victoria from the equation, however, and the picture transforms: claims would have fallen 10%, with costs down eigh%.
“Each year, Victoria’s numbers stand apart from the rest of the country, and that gap is widening,” Hall said.
Beyond raw claim volumes, theft claim frequency—the incidence of motor vehicle theft as a percentage of total motor policies—has become another pressure point. While frequency declined across all other states, Victoria recorded a 31% jump, climbing from 0.35% to 0.46% in metropolitan areas.
The trend presents mounting challenges for brokers advising Victorian clients on comprehensive motor cover, particularly as the gap between Victoria and other jurisdictions continues to expand.
Comprehensive motor vehicle policy numbers rose 2.2% across all states analysed in 2025, suggesting steady market demand despite the claims volatility.
“While every other State is effectively reducing car theft, in Victoria the volume of claims and the costs involved remain at unacceptable levels and that sustained pattern is what’s most concerning,” Hall said.
The divergence raises questions about law enforcement resourcing, organised crime networks and vehicle security standards in Victoria—issues that may ultimately flow through to premium adjustments and underwriting appetite as insurers reassess their exposure in the state’s metropolitan corridors.
For brokers, the data underscores the need for frank conversations with Victorian clients about risk management, vehicle security measures and the changing claims landscape in what has become Australia’s motor theft capital.
