GUIDES & RESOURCES

Car insurance Victoria

Victoria is Australia’s most densely populated state, except ACT. That means our roads can be densely populated too. After all, we might have our trams in the city, but we all love the independence of getting around in our own car.
Young couple opening the doors to their car

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With all those people on the road, and off, it means that having adequate car insurance in Victoria is something to consider. Of course, Compulsory Third Party car insurance (CTP) is a requirement as a part of your registration, but as we’ll see, that won’t cover you for damage that can happen when you live in a state of constant busyness.

How much does car insurance cost in Victoria?

The cost of car insurance in Victoria varies according to many factors like the cover you choose, the car you drive and, where you live, We discuss more variables later in the article. This table gives you a rough idea of what the average car insurance costs in Victoria, depending on your personal circumstances, your policy could be cheaper or more expensive than these figures.

Average Comprehensive Car Insurance Premiums In Victoria*

 

 

Female

Male

State (group)

Age (group)

FY20

*FY21

FY20

*FY21

VIC

18 - 24

$1,210

$1,180

$1,262

$1,305

VIC

25 - 29

$1,016

$1,052

$1,096

$1,148

VIC

30 - 44

$920

$958

$969

$989

VIC

45+

$770

$777

$832

$831

*Based on comprehensive policies sold by iSelect. FY21 numbers are for the period 01 July 2020 - May 02 2021

What types of car insurance are available in Victoria?

There are four main types of car insurance available to Victorians, while each category covers similar circumstances, it’s always worth checking each individual policy before you take it out. So what are they?

Compulsory Third Party (CTP)

As the name suggests, this insurance is compulsory for all Victorian drivers. It’s included in the cost of your car registration and pays for death and medical costs if your car is involved in an accident. It helps cover you, your passengers, other road users and pedestrians. Basically, anyone who is injured, or worse, because of an accident with your car.

It’s important to note that CTP doesn’t cover property damage, including your car or other people’s property involved in the accident.

Third Party Property (TPP)

This is the next step up, and is often considered to be the minimum insurance people consider. It helps cover damage to other people’s property caused by your car in an accident. In some limited circumstances, it may also help cover some of your costs if another driver is at fault and they’re not insured. So if you have TPP insurance and you run into a brand-new Rolls Royce, you probably won’t have to buy a new one out of your own pocket.

Third Party Fire and Theft (TPF&T)

Another step up. Third Party Fire and Theft insurance (TPF&T) helps cover Victorians for damage to another person’s vehicle or property (that’s the ‘Third Party’ bit), and it also helps cover you for any loss or damage to your car resulting from a fire or if it’s stolen. Some policies can also include limited cover should you have a ‘not at fault’ accident and the other driver isn’t insured, but you’ll have to check this with individual providers.

Comprehensive Car Insurance

Victorians with Comprehensive Car Insurance have the highest level of cover. As well as covering all of the things in the above policies, it helps cover damage to your car in an accident or in an extreme weather event, fire or vandalism. It can also help replace your car if it is damaged beyond repair (‘written off’) after an accident.
This table shows what is, and isn’t, typically covered by the above policies.

Insurance Type

Injuries to other people

Damage to other people’s car or property

Damage caused by fire or theft

Accidental damage to your own car

Compulsory Third Party

Yes

No

No

No

Third-Party Property Damage

No

Yes

No

No

 Third-Party Fire and Theft

No

Yes

Yes

No

 Comprehensive

No

Yes

Yes

Yes

Before deciding on a policy it is important to review the Product Disclosure Statement which has information about exclusions, limitations and inclusions.

Do I need car insurance in Victoria if CTP is included in my registration?

As we said earlier, CTP doesn’t cover any damage to property, yours or anybody else’s. So even if your car is only worth a few thousand dollars, that won’t help if you run into a Ferrari, or cause expensive damage to someone’s house or business. You’ll be left to pick up those costs out of your pocket.

It could get ugly, and cause long lasting financial damage.

A typical year on Victorian roads

Victorian Car Theft

In 2020, Victoria accounted for nearly a third of Australia’s car thefts (National Motor Vehicle Theft Reduction Council). There were 14,078 car thefts in Victoria in 2020. Some areas are higher risk for theft than others. Check below to see if you live in one of the top ten areas for car theft.

 Local Government

Authority

Motor Vehicle thefts 2020

Hume (City)

767

Casey (City)

711

Melbourne (City)

666

Moreland (City)

605

Brimbank (City)

590

Greater Dandenong (City)

602

Greater Geelong (City)

561

Wydnham (City)

539

Darebin (City)

500

Whittlesea (City)

421

Source: National Motor Vehicle Theft Reduction Council (NMVTRC)

What are the thieves’ favourite cars?

It’s worth knowing too, that your car doesn’t have to be a highly desirable sporty model to get stolen. In fact, according to carsafe.com.au, some of the most common vehicles stolen in 2020 included: Nissan Pulsar, Holden Commodore, Toyota Hilux, Ford Ranger, Nissan Navara, and Holden Captiva. Quite normal, everyday vehicles.

Victorian Crash Statistics

According to ‘Road Trauma Australia’, the 2019 Annual Statistical Summary released in July 2020 by the Australian Government Bureau of Infrastructure, Transport and Regional Economics, Victoria had 4.1 fatal car crashes per 100,000 people in 2019. That’s up from 3.3 the previous year.

How do I find a suitable car insurance policy in Victoria?

It’s a good idea to begin by working out what level of cover you think would be suitable for you. The section of this article outlining the various covers is a good place to start.

It’s worth thinking of what your cover will cost you now versus how much it could save you, in the event of a claim. Do you really have enough spare money to cover replacing your vehicle, or would you be able to go without? As they say, you notice the value of insurance when you need it.

So once you’ve worked out what cover you want, you can start to compare. Different policies offer various options and extras which may be of interest to you. In some cases these can include:

  •  Roadside Assistance: Usually an optional extra can be very handy having someone to call in the event of a flat tyre or a breakdown.
  • Towing: Some policies help with the cost of towing if your car is involved in an accident. Towing can get expensive if you’re a long way from home, so this extra could be helpful.
  • Flexible Payment: Not having to fork out for your hefty insurance premium all at once can be useful when it comes to budgeting. Some providers let you pay monthly or fortnightly, but keep an eye out for additional charges for this payment option.

Options to look out for:

Some insurers offer certain options which could help reduce your premiums, such as:

  • Age-restricted driver: By agreeing that all drivers of your car will be over a certain age (eg 25 or 30), some insurers will offer a cheaper premium.
  • No-claims bonus: If you don’t claim, your bonus builds up over the years. A claim-free insurance history can save you on premiums.
  • Personal items cover: Some insurers offer help to cover the theft and/or damage of personal belongings from your car.

Another important consideration is the way in which an insurer values your car in the event of a claim. It can usually be ‘agreed value’ or ‘market value’. To make sure you know how your insurer does this, refer to your policy documents and the Product Disclosure Statement.

So Victoria...are you ready to start comparing policies?

You’ve done the hard work, so now we’ll lend you a hand. Just use our online tool or call 13 19 20 and we’ll help you to compare from our range of car insurance providers.

Last updated: 08/09/2021

Sources:
1. https://carsafe.com.au/dashboard#tab1
2. https://www.bitre.gov.au/sites/default/files/documents/road_trauma_australia_2019_statistical_summary.pdf

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