Australian motor vehicle insurance trends

Australian car insurance costs have seen significant upward pressure. An investigation by the Australian Securities and Investments Commission (ASIC) found that premiums surged approximately 50% over a six-year period, with an 8% increase in the year leading to July 2025. This growth exceeded the 3% consumer price index increase. ASIC noted that insurers often failed to provide clear explanations for these hikes, and that 31% of surveyed customers could secure lower rates by disputing quotes. Industry representatives cited a 47% increase in claim costs since 2020, attributed to higher repair costs for electric vehicles and SUVs, alongside a shortage of specialized technicians.

In Victoria, insurance claims specifically related to motor vehicle theft and burglary reached $244 million for the 12 months ending June 30, 2026, a 9% increase from the previous year. The Insurance Council of Australia (ICA) identified Victoria as the national leader in vehicle theft, stating that more cars are stolen or broken into in Melbourne annually than in all other Australian capital cities combined. While theft claims declined in other states, Victoria saw a 28% rise in claims during the first half of 2026. The ICA reported that in Victoria, a car is stolen or broken into every 43 minutes.