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Written by
Kervin Mathew
Edited by
Andrew Kemp
Reviewed by
Adrian BennettWe compare many well-known car insurers
iSelect does not compare all providers in the market or all policies offered by our partners in your area. Not all policies or special offers are available to all customers. Learn more.
How does car insurance work in Victoria (Vic)?
In Vic, car insurance helps cover vehicles and property in case they’re damaged due to an insured event, like an accident, while compulsory third-party (CTP) insurance covers injuries or deaths caused by road accidents. When it comes to vehicles and property, Victorians can buy comprehensive, third-party property, fire or theft and third-party property insurance, each with varying levels of cover. CTP insurance is included in your car registration as the Transport Accident Commission charge.
What’s driving like in Vic?
Driving in Vic can be a bit different when you’re dealing with hook turns or sharing the road with the world’s largest tram network. Unfortunately, metro Victoria has one of the highest costs and rates of motor vehicle theft insurance claims. That’s why it helps to consider the type of car insurance policy you need to protect yourself from a costly accident or car theft, so driving experience in the Garden State might feel like fewer thorns and more roses.
What types of car insurance are available in Vic?
As with the rest of Australia, there are three types of car insurance for Vic-registered vehicles, with each providing a different level of cover. Comprehensive insurance includes cover for both your car and other people’s cars and property. Third-party property and third-party property, fire and theft insurance mainly cover damage to other people’s property, with only limited cover for your own car.
Third-party property
Third-party property insurance helps cover damage to other people’s vehicle property caused by your car in an accident. In some limited circumstances, it might also help cover some of your costs if another driver is at fault and they’re not insured. So, if you have third-party property insurance and you accidentally run into a brand-new Rolls-Royce, you probably won’t pay a hefty repair bill or for a replacement in case it’s written off.
Third-party property, fire and theft
A third-party property, fire and theft insurance policy helps cover damage you might cause to another person’s vehicle or property, while also covering you for loss or damage to your car resulting from a fire or if it’s stolen. Some third-party car insurance policies can also include limited cover if 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
Comprehensive car insurance is one of the highest levels of cover available, covering all the events that third-party car insurance does, plus it includes cover for your car if it’s damaged or written-off due to an accident, regardless of who’s at fault. A comprehensive policy also might help cover your car for other insured events, such as vandalism or extreme weather. Lastly, insurers may offer you a range of optional extras, such as Choice of Repairer or the option to pay a reduced excess for windscreen or window glass damage.
Note: It’s worth remembering that car insurance and compulsory third-party (CTP) insurance are not the same, as one covers damage to vehicles and property while the other covers personal injuries or deaths caused by a road accident. iSelect doesn’t compare CTP insurance policies, but we can help you compare other types of cover for your car, including comprehensive car insurance.
What can different types of car insurance cover in Vic?
Comprehensive car insurance can cover both your car for loss and damage as well as third-party property damage, aka damage you cause to other people’s cars and property. Third-party property, fire and theft includes cover for your car if it’s stolen or damaged by fire, while third-party property policies cover only third-party property damage. Compulsory third-party (CTP) insurance only covers personal injuries or deaths caused by motor accidents.
| Insurance type | Other people’s cars or property | Your car for damage or loss due to fire or theft | Your car for damage or loss | Personal injury to other people or deaths |
|---|---|---|---|---|
| Third-party property | Yes | No | No | No |
| Third-party property, fire and theft | Yes | Yes | No | No |
| Comprehensive | Yes | Yes | Yes | No |
| CTP | No | No | No | Yes |
Each car insurance policy has a Product Disclosure Statement (PDS) that provides you with everything you need to know about a policy’s coverage, from exclusions to conditions of cover. Before you decide to buy a car insurance policy, it’s always a good idea to read its PDS to be sure that the cover you’re getting matches your needs.
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How to buy with iSelect
Get acquainted
Tell us about your car and what you’re looking for, and we’ll get to work.
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Helpful tip
Driving in Melbourne can be a challenge for those not familiar with dealing with trams and hook turns. So, if you’re from out of town, comprehensive cover could be worth the added peace of mind!
Toby Hagon
Motoring Journalist
How much does car insurance cost in Vic?
The average cost of car insurance for iSelect’s Victorian customers was $1,431 per year. Comprehensive car insurance premiums averaged $1,492 per year, while third-party property, fire and theft policies cost an average of $799 per year. A basic third-party property policy costs $705 per year on average.
| Type of cover | Average premium |
|---|---|
| Comprehensive | $1,492 |
| Third-party property, fire and theft | $799 |
| Third-party property | $705 |
Note: These figures reflect indicative car insurance costs in Vic, based on iSelect data from 1 June 2025 to 31 May 2026 and rounded where appropriate. Actual costs may vary depending on individual circumstances. Data retrieved June 2026.
What affects car insurance premiums in Vic?
The cost of car insurance in Vic can depend on the type of policy, car and location. Your premium can also depend on your age and gender, and your history of claims and traffic offences. All these factors add up to your level of risk, which is what insurers ultimately consider when they calculate your car insurance premiums.
Level of cover
Higher levels of cover generally mean you’ll be paying a higher premium. Comprehensive insurance typically costs more because it covers more events than third-party car insurance – meaning that the insurer takes on more risk. Adding optional extras to your policy can also lead to higher premiums.
Driver age and history
Younger and less experienced drivers often face higher premiums because they’re riskier to insure. For example, young drivers in Victoria are considered more likely to be involved in a serious car accident during their first year of driving than drivers who’ve spent more time behind the wheel. By contrast, experienced drivers who haven’t committed a traffic offence or made a car insurance claim in years are likely to pay lower premiums.
Vehicle type
When deciding premiums, insurance companies look at the make, model and age of the vehicle as well as its market value to zero in on how much it would cost the insurer to repair or replace, in addition to other factors. For example, a brand-new Tesla or a high-powered ute is likely to attract a higher premium than a second-hand hatchback or similar.
Location
Where you live and park your car could determine how likely it is to be damaged or stolen. Insurers are more likely to offer you a lower premium if you have a lock-up garage than if you park on the street. Similarly, residents of suburbs with more traffic or higher car theft rates could face higher premiums because of the higher risk of accidental damage or their car being stolen.
How can I reduce my car insurance premiums?
You’re likely to pay a lower premium if you have a lower risk level. So, think about how you can lower the chances of your car being damaged or stolen. Restricting younger drivers from using your car, raising your car insurance excess or opting for a policy that rewards you with a discount for driving less are some of the ways you could lower your premiums.
Setting driver age restrictions
If you let your insurer know that anyone who drives your car will be over a certain age, say 25 or 30, it might open the door to cheaper car insurance. That’s because older or more experienced drivers are largely considered a lower risk when behind the wheel than young or learner drivers or drivers on their Ps.
Paying higher excess amounts
You may be able to lower your premiums on some policies by agreeing to pay a higher excess if you need to make a claim. An excess is the out-of-pocket cost you pay towards a claim. If you choose a higher excess amount, you’re essentially taking on more of the risk, and this could get insurers to lower premiums – just be sure to choose an excess amount you can afford to pay come claim time.
Opting for pay as you drive policies
A pay as you drive or low-kilometre policy offers a lower premium if you agree to drive within a set number of kilometres over the policy term. The kilometre limit is usually specified by the insurer, and you might have the option to choose from more than one specific limit depending on how much you drive. The lower the kilometre limit, the less you’ll likely pay for your cover.
Keeping your car secure and safe to drive
Parking your car in a lock-up garage or carport lowers the risk of theft or damage from moving traffic or extreme weather. Your car’s safety rating also matters, so it helps to avoid car modifications such as changes to suspension or aftermarket exhaust systems that might impact your car’s safety. Plus, adding more parts to your car means more stuff for your insurer to cover, which is likely to increase your premiums.
Frequently asked questions
Which companies offer car insurance in Vic?
There are several car insurance brands – ranging from established operators to newer players – offering car insurance to Victorian drivers. iSelect can help you compare a range of these policies offered by some well-known car insurance brands, including:
Other car insurers in the market include:
- AAMI
- Allianz
- ANZ
- Bingle
- Bupa
- CGU
- GIO
- NRMA
- QBE
- RACV
- Real Insurance
- Shannons
- Suncorp Insurance
- Toyota Insurance
- Virgin Money
- Westpac
- Youi.
Note: iSelect does not compare all car insurance providers in the market, or all products offered by our partners in your area.
What are some features I should look for in my car insurance?
When weighing up car insurance, think about things like how much you want to insure your car for, whether you’d like flexible payment options and the likelihood of you making use of policy features such as hire car, agreed value cover or new car replacement. Generally, it’s a good idea to consider what car insurance features would suit your needs, car, budget and driving habits.
- Towing: Some policies help with the cost of towing if your car is involved in an accident. Towing can get expensive, so this extra could be helpful.
- Hire car: If you depend on your car for your day-to-day activities, consider a policy with hire car cover so you can still get around if your car is stolen or damaged in an accident.
- Flexible payment: Some providers let you pay your premium in monthly or fortnightly instalments instead of annually, but keep an eye out for additional charges for this option.
- Agreed value: An agreed value policy lets you insure your car for higher than its market value and gives you more certainty about your payout if you make a total loss claim.
- New car replacement: If you recently bought a brand-new car and it’s then stolen or written off, a policy with the new car replacement feature might be able to replace it with a like-for-like or similar make and model.
- Roadside assistance: More of an add-on option than a feature, roadside assistance could come in handy when you’re stranded with a flat tyre or a breakdown.
Do I need car insurance in Vic if compulsory third-party (CTP) insurance is included in my registration?
You need car insurance if you want cover for accidental damage or theft, because CTP doesn’t cover your property or anybody else’s. Even if you think your car is not worth insuring, CTP insurance won’t help you if you accidentally damage somebody’s car, house or business. Without insurance, you’d be liable to shoulder those costs out of your pocket.
Does Vic have high rates of car theft?
Yes, Vic has a relatively high rate of car thefts, with the number climbing nearly 11% year-on-year in 2025 to 31,695, according to the Crime Statistics Agency. In the same period, there were also 79,412 incidents of theft from motor vehicles – up almost 8% from 2024.
So, how does this translate to car insurance? According to the Insurance Council of Australia, a car is broken into or stolen every 42 minutes in Victoria. In fact, the number of claims for motor vehicles in the state rose by 25% to 12,500 claims between 2024 and 2025, amounting to $243 million in claim costs – that’s more than in Queensland, New South Wales, South Australia and Western Australia combined.
This could mean one thing: it might be time to consider a third-party property, fire and theft or a comprehensive policy, if you don’t have one yet.
Which cars get stolen the most in Vic?
Holden Commodores, Toyota LandCruisers, and Toyota Corollas were some of the most stolen cars in Vic in 2025. There were 1,271 reported thefts for the Commodore, 846 for the LandCruiser and 676 for the Corolla, according to Victoria Police. Overall, Toyotas were the car brand most targeted by car thieves in Vic, with two other models – HiLux and RAV4 – among the state’s most stolen cars.
Victoria Police stated that models with electronic push starts that are easy to access electronically were specifically targeted by thieves. In fact, Victoria Police estimate as many as 30 electronic car thefts happen every day.
How can I find the best car insurance in Vic?
You can find the best car insurance for you by comparing policies from multiple providers using a comparison service like iSelect. But remember that what might be the ‘best’ policy for somebody else might not suit you.
To help you weigh up your car insurance options in Vic, consider iSelect’s car insurance comparison tool while you’re shopping around for policy quotes.
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iSelect General Pty Ltd (ABN 90 131 798 126. AFSL 334115) has partnered with Compare the Market (ABN 83 117 323 378. AFSL 422926) to compare a range of car insurers and policies. Not all providers in the market or all policies offered by the partners are compared and not all policies or special offers are available to all customers.
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