Car Insurance Victoria

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.  

We’ll discuss these variables and more later in this article. For now, the table below will give you a rough idea of how much Car Insurance costs in Victoria on average. Just keep in mind that (depending on your personal circumstances) your policy could be cheaper or more expensive than these figures.

*Based on comprehensive policies sold by iSelect between January – December 2022

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 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 (TPP) 

This 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 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. Phew!  

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 invaluable peace of mind that comes from knowing you have one of the highest levels of cover. As well as covering all of the things outlined in the above options, 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.

Before deciding on a policy, it is important to review the Product Disclosure Statement (PDS) which has detailed 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, CTP won’t help you 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

From Mount Macedon to Red Hill, Victoria has its fair share of relaxing, scenic roads. However, for all its beauty, The Garden State isn’t without some risks to drivers—both newbies and veterans alike! Fortunately, a suitable Car Insurance policy might just help protect you against some of the following

Victorian Car Theft 

^{Source: National Motor Vehicle Theft Reduction Council (NMVTRC), 4.1 VIC - Motor vehicle thefts by top Local Government Areas (LGA), 2020 vs 2019}

What are the thieves’ favourite cars?  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: Holden Commodore, Toyota Hilux, Ford Ranger, Holden Captiva, Nissan Pulsar, Ford Falcon and Nissan Navara.2 Quite normal, everyday vehicles.

Victorian Crash Statistics 

According to ‘Road Trauma Australia’, the 2021 Annual Statistical Summary by the Australian Government Bureau of Infrastructure, Transport and Regional Economics, Victoria had 3.5 fatal car crashes per 100,000 people in 2021.³ That’s up from 3.2 the previous year. 

This isn’t to mention the thousands of non-fatal crashes that occur every year in Victoria,⁴ either. All the more reason you may want to consider Car Insurance if you’re looking to protect yourself against a costly accident! 

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 really 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, 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 for your hefty annual insurance premium all at once can be useful when it comes to budgeting. Some providers let you pay monthly or fortnightly instead of yearly but keep an eye out for additional charges for this payment option. 

What other options are available?

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 (e.g. 25 or 30), some insurers will offer a cheaper premium.⁵
• No-claims bonus: If you don’t claim, your insurer may offer a bonus which builds up over the years. A claim-free insurance history could save you on premiums.
• Personal items cover: Some insurers cover the theft and/or damage of personal belongings from your car, like sunglasses, wallets or laptops. 

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 (PDS). 

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.* 

^{Sources:
1 National Motor Vehicle Theft Reduction Council - 1.1 AUS - Motor vehicle theft summary, 2019 to 2020
2 National Motor Vehicle Theft Reduction Council - 3.3 AUS - Top motor vehicle theft targets, 2020.
3 Bureau of Infrastructure and Transport Research Economics -  Road trauma Australia 2021 statistical summary, Table 2.1 - Annual fatality rate per 100,000 population by jurisdiction (page 30)
4 Department of Transport | VicRoads - Road Crashes for five Years Victoria
5 Budget Direct - Comprehensive Car Insurance}