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Written by
Tina Sendin
Edited by
Ellie Garran
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?
Driving in Victoria can be quite the adventure, with cars, bikes, pedestrians, and trams all sharing Melbourne’s roads. Not to mention a random encounter with a kangaroo in the countryside. Whether it’s a fender bender during a hook turn or a scrape with an e-scooter, having the right coverage means you can enjoy the state’s picturesque landscapes and cruise down its laneways worry-free.
What’s driving like in Victoria?
As adventurous as it seems, Victoria has unfortunately had its share of motoring mishaps. According to the Transport Accident Commission, there were 284 road fatalities in 2024 – up 13% from the previous five years’ average.1Transport Accident Commission (TAC) – Lives Lost – Annual
This isn’t to skip over the many more non-fatal crashes that occur every year in Victoria, either. All the more reason you might want to consider car insurance if you’re looking to protect yourself against a costly accident!
What types of car insurance are available in Victoria?
Compulsory third-party
As the name suggests, compulsory third-party (CTP) insurance is mandatory for all Victorian vehicles. It’s included in the cost of your car registration, and it can pay for death and medical costs in the unfortunate event your car is involved in a serious accident. It can help cover you, your passengers, other road users and pedestrians. Basically, anyone who is injured, or worse, because of an accident with your car. is mandatory for all Victorian vehicles. It’s included in the cost of your car registration, and it can pay for death and medical costs in the unfortunate event your car is involved in a serious accident. It can help 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 damage to your car or other people’s property involved in the accident.
Third-party property
Third-party property insurance is the next step up and is often deemed to be the minimum insurance drivers should consider. It helps cover damage to other people’s 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 run into a brand-new Rolls Royce, you probably won’t have to buy a new one out of your own pocket. Phew!
Third-party property, fire, and theft
Another step up is third-party property, fire, and theft insurance. It 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 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
Victorians with comprehensive car insurance typically have the invaluable peace of mind that comes from knowing they have one of the highest levels of cover. It covers all the things outlined in third-party property and third-party property, fire, and theft, as well as repairing or even replacing your own car if it’s damaged beyond repair (‘written-off’) after an accident.
A comprehensive policy also helps cover damage to your car from an accident or from the infamous Victorian weather – not just four seasons in a day, but also the occasional damage from hail or storms!
What can different types of car insurance cover in Victoria?
| Insurance type | Injuries to other people | Damage to other people’s car or property | Damage or loss caused by fire or theft | Accidental damage to your own car |
| Compulsory third-party (CTP) | Yes | No | No | No |
| Third-party property | No | Yes | No | No |
| Third-party property, fire, and theft | No | Yes | Yes | No |
| Comprehensive | No | Yes | Yes | Yes |
Why buy with iSelect?
We’ve been helping Australians save time, effort, and money for over 25 years.
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Since 2018, iSelect has helped Aussies compare car insurance almost 2 million times.
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*T&Cs apply
FOUND THE SAME POLICY CHEAPER?
WE’LL GIVE YOU A $100 E-GIFT CARD
When it comes to comprehensive car insurance, we’re confident that you’ll get the same price through iSelect as going direct to the insurer.
So, if within 30 days after buying with us, you find the identical policy (commencing within two days of the quote) with a lower annual premium from the same insurer, we’ll give you a $100 e-gift card.*
How to buy with iSelect
Get acquainted
Tell us about your car and what you’re looking for, and we’ll get to work.
Explore your options
We’ll show you policies side by side, including their monthly premiums, inclusions, and exclusions, along with any optional extras.
Pick your favourite
You’re in control. Let us know which policy you want to buy, and we’ll set you up then and there.
Say goodbye to your old policy
All that’s left to do is let your previous insurer know that it’s over between you and them.
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, a comprehensive policy could be worth the added peace of mind!
Toby Hagon
Motoring Journalist
How much does car insurance cost in Victoria?
The cost of car insurance in Victoria can vary for many reasons; the type of cover you choose, the car you drive and where you live can all have an impact. To give you an idea of costs, here’s the average cost of comprehensive car insurance premiums for Victorian iSelect customers.
Average comprehensive car insurance premiums in Victoria, 2024–25
| Age | Female | Male |
| 18–24 | $1,779 | $1,767 |
| 25–29 | $1,540 | $1,475 |
| 30–44 | $1,419 | $1,408 |
| 45+ | $1,140 | $1,181 |
Source: Based on iSelect comprehensive car insurance sales, July 2024 – June 2025
What affects car insurance premiums in Victoria?
Car insurance premiums can be influenced by the following:
Coverage level
The type and amount of coverage you choose will affect your premium.
Driver’s age and driving history
Younger and less experienced drivers often face higher premiums. For instance, if they’ve been driving for years and haven’t made a single claim, the premium can be much lower (compared to having multiple claims – or traffic violations – in one year).
Vehicle type
Insurers look into the make, model, and age of the vehicle. A brand-new Tesla is likely to cost more to insure than a second-hand car.
Location
Where you live and park your car affects your premium. Parking it on the street in the Melbourne CBD might have a higher premium than in a closed garage in the ‘burbs.
How can I reduce my car insurance premiums?
Some insurers offer certain options which could help reduce your premiums, such as:
Driver age restrictions
If you agree that all drivers of your car will be over a certain age (e.g. 25 or 30), some insurers will offer a cheaper premium.
Higher excess
You may be able to adjust the excess you pay on some policies if you need to make a claim – the higher excess you choose, the lower your premium.
Pay as you drive
Pay as you drive policies offer a lower premium if you agree to drive within a set number of kilometres over the policy term.
Another important consideration is the way in which an insurer values your car in the event of a claim. It can usually be either ‘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 (PDS).
Frequently asked questions
What features should I look for in my car insurance?
It’s a good idea to begin by working out what level of cover you think would be suitable for you. While it can boil down to your needs and wants, many policies offer the following features:
- Roadside assistance: Usually an add on, it 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 all at once for your hefty annual insurance premium can be useful when it comes to budgeting. Some providers let you pay monthly or fortnightly instead of annually, but keep an eye out for additional charges for this payment option.
Do I need car insurance in Victoria if CTP is included in my registration?
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, CTP won’t help you if you run into a Ferrari or cause expensive damage to someone’s house or business. You’d be left to pick up those costs out of your pocket.
It could get ugly and cause long-lasting financial damage.
Does Victoria have high rates of car theft?
Victoria recorded 33,018 car thefts in the year up to June 2025, a 42% increase from the previous year.2RACV – Burglary, car theft and retail crime rises across Victoria In the same period, there were 86,351 incidents of theft from motor vehicles.3CBD NEWS – Crime surge hits Melbourne: thefts from cars and retail stores drive state-wide increase
The City of Melbourne, Casey, and Hume were prime targets for car thieves in 2024. Areas like Whittlesea in the north-east were among the hotspots that saw the highest increase in car thefts.
So, how does this translate to car insurance? Well, insurers have been receiving reports of stolen cars every 44 minutes in the state – possibly demonstrating that more car owners are having to rely on car insurance as a potential failsafe for vehicle related thefts.
This could mean one thing: it might be time to consider a third-party fire and theft or a comprehensive policy, if you don’t have one yet.
And maybe investing in a dash cam is a good idea, too; it could give you a nice close-up of that crook’s face!
Which cars get stolen the most in Victoria?
Your car doesn’t have to be a highly desirable sporty model to get stolen. In Frankston, for instance, the most common vehicles thieves like to take include older models of:
- Holden Commodores
- Toyota Hiluxes
- Ford Rangers
- Holden Captivas
- Nissan Pulsars
- Ford Falcons
- Nissan Navaras.
While they’re quite normal, everyday vehicles, they are thieves’ favourites for two likely reasons: there are more of them on the roads and they’re easier to sell – either in parts or their entirety.
Alarmingly, there’s also a rising trend affecting one in five car thefts: keyless car theft, where thieves electronically gain access to and start your vehicle. Most targeted models include Toyotas Landcruisers, Corollas, Hiluxes, and Camrys; Holden Commodores; and Subaru Imprezas and WRXs, with production years going as far back as 2008.
How can I find the best car insurance in Victoria?
With the right car insurance, you can cruise through your daily commutes or gear up for a snowy weekend in Mt Buller – free of worry about Victoria’s unpredictable weather or shady characters lurking in suburban shadows.
Finding the right car insurance in Victoria is all about understanding needs and preferences. Everyone has different priorities; you might be hunting for the lowest cost, or you might be after coverage with all the bells and whistles.
To help you weigh your options, consider comparing different policies and see which one tickles your fancy. Compare car insurance online from a range of providers with iSelect.
What are some car insurance providers in Australia?
If you’re keen to compare a range of policies, the iSelect comparison tool can help you find the right fit. It’s quick and easy – might even take less time than finding when your left your car keys! Some insurers that iSelect can help you compare include:
Other car insurers in the market include:
- AAMI
- Allianz
- ANZ
- Bingle
- Bupa
- CGU
- GIO
- NRMA
- QBE
- RAC
- RACQ
- RACT
- 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.
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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.
A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.
Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.