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Victoria; home of the most liveable city

Victoria is home to one of the world’s most liveable cities: Melbourne. It has been awarded this honour by the Economist Intelligence Unit (EIU) consistently since 2002,[1] but is the state home to the world’s most drivable roads?

From executing hook turns and navigating tram lines in the busy city, to scenic car trips winding along the Great Ocean Road to the Grampians – Victorian drivers need to be assertive, nimble and focused. After all, road conditions can change as abruptly as Melbourne’s infamous weather.

Victoria also recorded the highest amount of motor vehicle thefts around the country in the 2018 to 2019 financial year, with 15,490 total thefts.[2] If you do ever find yourself in a predicament on the road, having suitable car insurance can help cover certain costs.

What types of car cover are available in Victoria?

Comprehensive car insurance

Comprehensive car insurance is the highest level of cover. It covers loss or damage to your car from theft, fire, storm, flood, malicious acts, as well as accidental damage. It can also cover the damage to someone else’s car or property and may replace your vehicle if it’s a total loss and less than two years old.

Third Party Fire & Theft

This type of car insurance covers you for damage to someone else’s vehicle or property, as well as for the loss or damage to your car from fire or theft. Some policies have conditional cover for limited repair costs when you’re not at fault in an accident, and the other driver isn’t insured.

Third Party Property

Third Party Property car insurance covers the expenses of another person’s damaged property or vehicle when you’re involved in an accident and are at fault. It can sometimes provide a limited amount of cover for your own car’s loss or damage as a result of the accident. However, this depends on certain requirements being fulfilled (i.e. if the other driver isn’t insured and is at fault).

Compulsory Third Party (CTP)

CTP policies cover you, passengers, other drivers, road users and pedestrians for death or medical costs for personal injuries sustained from your car being involved in an accident. CTP doesn’t cover damage you cause to cars or property – including your own. It is a minimum requirement provided by Victoria’s government-owned Transport Accident Commission (TAC) - included with your car registration.

Which type of car insurance should Victorians get?

CTP insurance is a requirement for all Victorian drivers when they first register their car or renew their registration. However, it’s essential to determine which type of policy and level of cover is right for you and which additional insurance you should buy.

We found that the average market value of Victorian vehicles quoted on our website in the 2018 to 2019 Financial Year was $18,592. Almost a quarter (23.82%) of Victorians have indicated they purchased their vehicle with the help of a loan.

If you’ve spent all that money on purchasing your car, will your budget allow you enough room to replace or repair your car if it’s damaged, stolen, or totalled in an accident?

It’s important your significant investment doesn’t go to waste after one accident, which is why lenders often require you to purchase insurance if you’re taking out a car loan.

Here’s a comparison of car insurance available in Victoria:

Insurance typeDamage to your carDamage to another person’s car or propertyDamage or loss caused by theft or fireInjuries or death to other people in an accident
 CTPNoNoNoYes
 Third Party PropertyNoYesNoIncluded in CTP as a part of registration
 Third Party Fire and TheftNoYesYesIncluded in CTP as a part of registration
 ComprehensiveYesYesYesIncluded in CTP as a part of registration
Please note: There are certain factors and variables that may affect your level of coverage. Always read the fine print on your Product Disclosure Statement (PDS) for specific limitations and conditions to the cover.

drivers in queensland

Which features do Victorian drivers look for in a car insurance policy?

You may be able to choose some of the below features when you’re taking out cover, or as an additional extra (depending on your policy). Note that it costs more to add additional extras to your policy.

Should I get comprehensive car insurance in Victoria?

Whether you’re driving through the streets of Geelong, ascending the Victorian Alps – or anywhere in Australia – comprehensive insurance is the top level of car cover.

Comprehensive insurance covers you for legal liability, accidental damage, damage to a third party, theft, fire and storm damage. You can also get car hire cover and brand-new replacement for vehicles two years old or younger as additional inclusions.

You can easily compare comprehensive car insurance for Victoria and get quotes in minutes using our free comparison service.

How much will car insurance cost a driver in Victoria?

Elizabeth is 38 years old with a rating 1. She drives a 2014 model Mazda 3 hatch and lives in St Kilda. Based on the average quoted price from providers on our panel, Elizabeth might pay $14 per week for comprehensive car insurance. If Elizabeth lived in Shepparton, the average quote price from providers on our panel increased to $16 for the same level of cover.

The difference is about the price of three to four café lattes on Lygon Street – just for some peace of mind on the road!

However, what you pay varies based on many factors, including:

  • Your car’s model, age and kilometres
  • You address and claims history
  • Where you keep your car at night
  • The level of car insurance.

The chart below shows some example comparisons for car insurance for Elizabeth and compares just how much of a difference location can make to the price of her car insurance.

Average car insurance premiums in Victoria

Source: Compare the Market quote, produced 9/10/19. These prices are based on quotes for a manual Mazda 3 2014 five-door hatchback model, for private use to be driven 15,000km/year with no accident or hail damage, to be driven by a 38-year-old female driver with a rating 1 NCD (no claims discount) for the postcodes of 3182 (St Kilda) and 3630 (Shepparton). For St Kilda, average comprehensive and Third Party Property prices based on quotes provided by Budget Direct, ING, Virgin Money, Australia Post, 1st for Women, Ozicare, Huddle, Woolworths. For Shepparton, average comprehensive quotes provided by Budget Direct, ING, Virgin Money, Australia Post, Woolworths and Huddle, 1st for Women, Ozicare, Woolworths, and Retirease while Third Party Property quotes were provided by Budget Direct, ING, Virgin Money, Australia Post, Woolworths and Huddle.

If you want an idea of how much car insurance may cost you, you can complete a quote through using our free comparison service.

Why should you compare car insurance with us?

Switching could help you save

As happy as you might be to roll over your cover (i.e. because it’s so easy), you may not necessarily be getting the best value. Could you save, however, if you compared with us?

Comparing is quick & simple

Simply provide us a few details, and we can provide a range of products for you to review side-by-side.

Our service is 100% free

Our car comparison service costs you $0! Any Victorian driver can compare car insurance for free, as often as needed.

Car insurance suited to you

Tell us which part of Victoria you live in, which car you drive and a few other details. In return, we’ll show you policies from our partners that meet your needs and budget.

Ready to compare car insurance?

Start a quote

How does driving in Victoria affect your car insurance?

Your car insurance premium is barely affected by the state or territory you live in. However, your car insurance premium can be affected by the following:

  • where you park. Is your car secured safely in a garage, or parked on the street? You can safely guess which situation results in higher rates of theft; and
  • where you live. Is your home in a safe area? Or, does your neighbourhood have a high rate of car thefts or is your home situated in floodplain or bushfire zone?

Car crime in Victoria

Victoria has the highest number of reported vehicle thefts of all the states and territories – in part due to a large population. Victoria experienced 15,490 vehicle thefts in the 2018 to 2019 financial year, according to the National Motor Vehicle Theft Reduction Council.[3]

Passenger cars have seen a three per cent increase in car thefts, while motorcycles have seen a two per cent reduction compared to the previous financial year. However, the National Motor Vehicle Theft Reduction Council notes that compared to the 2014 to 2015 financial year, car thefts have risen by 15%![4]

You shouldn’t take car crime lightly. Consider a policy that covers theft and vandalism.

Road dangers in Victoria

Road dangers in Victoria

According to the Transport Accident Commission Victoria, there were 159 lives lost on Victorian roads in 2018.[5] Speeding is responsible for 29% of road deaths in the state.[6]

In the streets of Melbourne, you have to watch out for trams as well as pedestrians and other motorists. Out in Victoria’s rural areas, wildlife becomes a danger, as well as fatigue, which causes 20% of fatal crashes.[7]

This all boils down to one point: you should exercise a high degree of caution when you’re using Victorian roads. 

Frequently asked questions about Victoria car insurance

Still have some burning questions? We’re here to answer them.

Does my car insurance cost more in regional Victoria or inner-city Melbourne?

The cost of your car insurance is a bit more complicated than whether you live in Melbourne, Geelong, Ballarat, or out in Victorian bushland. That said, the postcode you live in does play a part in how much your insurance will cost.

For example, perhaps your regional town has safe roads but has a high rate of car thefts. Or, your inner-city suburb home is safe from thieves, your car is garaged at night, but you live near a busy intersection that has lots of crashes. Both policies might cost a bit more than somewhere with low rates of theft and accidents – regardless of where it is in the state.

Essentially, the lower your chances of claiming in your suburb, the more affordable your policy may be. The chart above compares just two postcodes to provide an example of how your Victorian address can affect your car insurance.

What affects my car insurance premium in Victoria?

Just like anywhere else in Australia, your car insurance premiums will depend on several factors, such as:

  • your type of car. Common models and older cars usually cost less to insure, as they are cheaper to fix or replace. Conversely, new, classic or sports cars can cost more to repair and insure;
  • how old you are. Your age can affect how much you pay for premiums, as younger drivers generally have a higher risk of being in car accidents. Most insurers will have cheaper premiums for drivers over 30, while some may still have more affordable premiums for drivers over 25 years of age.
  • your gender. According to female vs male driver statistics, women tend to be more careful drivers on the road than men, and some insurers consider this when calculating premiums.
  • your location. Where you live can contribute to your risk of making a car insurance claim. Sometimes, living in the city may have higher car theft rates or a higher likelihood of having an accident (i.e. due to busier roads). Where you park your car can also increase your premiums;
  • the colour of your car. Colour can affect your premiums as some colours are harder to repaint should the paintwork be damaged.
  • your type of policy. Your premiums and excess will depend on the kind of policy you choose. Third Party car insurance may cost you less, but it also covers you for less – and won’t cover your own car’s damage. Comprehensive insurance will cost you more, but you’ll have the peace of mind of knowing you’re covered for most situations.
How do I find cheaper car insurance in Victoria?

All Victorians would appreciate getting cheaper car insurance. So, if you’re in the Garden State and looking to lower the cost of your vehicle’s insurance, you might be able to do the following – depending on your policy and needs:

  • park securely. Parking in the garage or a secure parking spot overnight can keep the price of insurance down and protect your car from thieves and hail;
  • increase your excess. The excess is paid when you make a claim, so this is a gamble that you won’t have to make a claim. Choosing a higher level of excess lowers the price of premiums, however;
  • restrict the age of drivers. Younger drivers are riskier to insure. Making sure you only let drivers over a certain age, like 25, for example, can help you save on your insurance costs. Also, only allowing listed drivers can save you paying the un-listed driver excess.
  • stay safe. While this might sound obvious, it’s vital to realise that many insurers offer a no claims discount if you haven’t claimed within a specific time frame.
Sources

[1] World’s 2nd most liveable city. State Government of Victoria. 2019.
[2] Theft Watch – Financial year 2018/19. Car Safe, National Motor Vehicle Theft Reduction Council. 2019.
[3] Theft Watch – Financial year 2018/19. Car Safe, National Motor Vehicle Theft Reduction Council. 2019.
[4] Theft Watch – Financial year 2018/19. Car Safe, National Motor Vehicle Theft Reduction Council. 2019.
[5] Towards Zero. Transport Accident Commission, Victoria State Government. 2019.
[6] Statistics by Topic. Transport Accident Commission, Victoria State Government. 2019.
[7] Driving conditions. Transport Accident Commission, Victoria State Government. 2019.

 

 

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