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Victoria home of the most liveable City

Victoria is home to the world’s most liveable city: Melbourne. It has been awarded this honour seven years in a row, 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 be assertive, nimble, and focused; because road conditions can change as abruptly as the weather.

Not only that, but Victoria also recorded the highest amount of motor vehicle thefts around the country in 2017, with 16,599 total thefts. 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

Comprehensive car insurance 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 meets specific requirements).

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 are 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 to yours or someone else’s car or property. It is a minimum requirement provided by government-owned Transport Accident Commission (TAC) - included with your car registration.

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

Some of the below features may be an included feature or extra with your car insurance policy (depending on your policy) and some extras are added at an additional cost.

drivers in queensland

Which type of car insurance should Victorians get?

Compulsory Third Party (CTP) insurance is a requirement for all Victorian drivers when they first register their car or renew their registration. However, it is 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 was $18,505 (2017). 59% of Aussies have indicated they purchased their vehicle with the help of a loan, with the average car loan amount worth $18,049 in Australia.

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.

Insurance type Damage to your car Damage to another person’s car or propertyDamage or loss caused by theft Injuries or death to other people in an accident
Green Slip (i.e. CTP)NoNoNoYes
Third party propertyNoYesNoNo
Third party fire & theftNoYesYesNo
ComprehensiveYesYesYesNo
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 for specific limitations and conditions to the cover.

How much will car insurance cost a driver in VIC?

Insurance premiums for this car cost roughly $10-14 a week for a comprehensive policy. That’s about the price of two café lattes on Lygon Street – just for some peace of mind on the road!

Source: Comparethemarket.com.au quote, produced 22/03/18. These prices are based on quotes for the Mazda 3 2010 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).

VIC Average Car Insurance Premiums

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 for your needs. Could you save, however, if you compared with us?

Comparing is quick & simple

There is no need to look at multiple websites to find a policy you’re happy with: just us! Simply give us a few details and we can provide a range of products for you to review side-by-side.

Our service is 100% free

Comparing car cover on comparethemarket.com.au costs you $0! Any Victorian driver can compare car insurance for free, as often as needed, until they find suitable cover.

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 help you find a range of policies suited to your budget, needs, and life-stage.

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How does driving in Victoria affect your car insurance?

Although road rules and driving in every state is slightly different, your car insurance premium is barely affected by the state you live in.

However, your car insurance premium can be affected by the following:

  • Your environment. Is your route to work easy or hard to navigate? It can impact your chances of an accident occurring.
  • Where do 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.
  • Where do 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 large part due to a much larger population. Victoria recorded almost 17,000 car thefts in 2017 and 80,000 documented instances of stolen items from cars.

While vehicular theft was down in Victoria by more than 12% year on year (as of September 2017), it has been the most commonly reported crime in the state since 2014 and has risen 61% in the last five years alone.

Car crime isn’t something to be dismissed, which is why you should consider a policy that covers theft and vandalism.

Top 10 Car Theft Hotspots Vic 2017

Road dangers in Victoria

According to Transport Accident Commission Victoria, there were 259 lives lost on Victorian roads in 2017. Speeding is a serious danger, being the most significant cause of crashes and road deaths in the state. Tailgating is another leading cause of crashes, especially during Australian summers.

In 2017, there were a variety of common Victorian road dangers which resulted in the majority of insurance claims: Victorian drivers had more “nose-to-tail” accidents than drivers in any other region (around 23% of all insurance claims). A further 17% of Victorian car insurance claims stemmed from damage while being parked, and 14% of claims were the result of a reversing accident. Victoria also recorded the most crashes nationwide caused by drivers failing to give way, which accounted for 13% of all insurance claims.

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

Frequently asked questions about VIC 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 isn’t usually determined by whether you live in the city or a regional town. However, premiums can be influenced by your postcode and your level of risk.

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 & 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.

What affects my car insurance premium in Victoria?

Your car insurance premium will depend on your risk of claiming from a variety of factors including:

  • 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.
  • Age: 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.
  • Gender: your gender can affect your premiums; 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.
  • 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 higher likelihood of having an accident (i.e. due to busier roads). Where you park your car can also contribute, while having a more dangerous route to work, instead of a short and simple drive, may also increase your premiums.
  • 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 get cheaper car insurance in Victoria?

All Victorians would appreciate getting cheaper car insurance. Making sure your car is protected at work and home (by parking undercover in a secure spot or adding extra security) can decrease your premium. Also, depending on your individual needs/requirements, increasing your policy’s excess (i.e. what you pay when you make a claim) and restricting the age of eligible drivers on your policy may decrease your premium. Most insurers also usually offer a no claims bonus when you don’t make any claims over a specified period.

Sources

1 http://www.abc.net.au/news/2017-12-03/victoria-weather-rain-flood-warnings-in-place/9220896
2 https://carsafe.com.au/quick
3 http://www.upstart.net.au/fighting-victorias-car-theft-crisis/
4 https://www.theaustralian.com.au/national-affairs/state-politics/victoria-leads-the-nation-in-car-thefts/news-story/e0f91e72f44687986009da615c2115ba
5 http://www.tac.vic.gov.au/road-safety/learning-to-drive/young-driver-statistics
6 http://www.tac.vic.gov.au/road-safety/statistics/lives-lost-annual
7 https://www.theage.com.au/national/victoria/the-seven-worst-intersections-for-crashes-in-victoria-20140528-394o9.html
Also found in herald sun article: Melbourne’s most dangerous roads revealed by AAMI analysis of… (I ran out of views for the day)
8 http://www.news.com.au/technology/innovation/motoring/nsw-and-victoria-top-the-list-of-nosetotail-crashes-sa-drivers-have-the-most-bingles-in-reverse/news-story/ceac8414499d4e85b831f9741fcca6c2
9 https://www.theage.com.au/national/victoria/melbourne-weather-record-rainfall-and-flash-flooding-to-kick-off-summer-20171130-gzvk4s.html
10 http://www.heraldsun.com.au/news/victoria/wild-weather-bureau-of-meteorology-urges-caution-ahead-of-severe-weather-event/news-story/544cf8d5f1ceec5ea29f15fa5cc45471
11 http://www.abc.net.au/news/2017-12-03/victoria-weather-rain-flood-warnings-in-place/9220896
12 https://prezi.com/vuk5zdob5o0d/black-saturday-bushfires/
13 https://knowledge.aidr.org.au/resources/bushfire-black-saturday-victoria-2009/
14 Found in Herald Sun article called “Melbourne hailstorm puts dent in Suncorp” (I’ve reached my limit)
15 https://knowledge.aidr.org.au/resources/bushfire-black-saturday-victoria-2009/
16 This was either found in the Herald Sun article called “Melbourne car dealerships selling off hail-damaged cars” or The Age “Dealers fear worst after hail hits cars” (sorry I’ve reached my limit)
17 https://www.aami.com.au/aami-answers/press-releases/vic-natural-hazard-hotspots-revealed.html
18 https://www.theguardian.com/weather/2017/dec/03/flood-warnings-downgraded-after-record-rain-in-south-east-australia

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