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Victoria, home of scenic views and Australia’s cultural capital

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 in Victoria can change as abruptly as Melbourne’s infamous weather.

Victoria also recorded the highest amount of motor vehicle thefts around the country in the 2020/21 financial year, with 12,651 total thefts.1 If you do ever find yourself in a predicament on the road (whether in Victoria or elsewhere in Australia), having suitable car insurance can help cover certain costs.

Why should you compare car insurance with us?

Switching could help you save

As happy as you might be to roll over your cover, 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 with a few details such as your driving history, details about the car and which part of Victoria you live in. In return we can provide you with a range of products for you to review side-by-side. Simples.

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.

Talk to experts

We’re here to help. If you have any questions about car insurance or how our service works, get in touch with our experts.

What types of car cover are available in Victoria?

Comprehensive car insurance

A comprehensive car insurance policy is the highest level of car cover. It covers financial loss or damage to your car from theft, fire, storm, flood, malicious acts and accidental damage. It can also cover the damage to someone else’s car or property following a car accident and may replace your vehicle if it’s a total loss.

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, theft and malicious acts. 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 Damage

Third Party Property Damage car insurance covers the expenses of another person’s damaged property or vehicle when you’re at fault for an accident. 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 injuries caused by an accident which is your fault. CTP doesn’t cover the damage you cause to cars or property, including your own. It’s a minimum requirement provided by Victoria’s government-owned Transport Accident Commission (TAC) and is 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.

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

It’s important your significant investment doesn’t go to waste after one accident (especially if it’s a brand new car), 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 options to consider.

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
 ComprehensiveYesYesYesIncluded in CTP as a part of registration
 Third Party Fire and TheftNoYesYesIncluded in CTP as a part of registration
 Third Party Property DamageNoYesNoIncluded in CTP as a part of registration
 CTPNoNoNoYes
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 exclusions and conditions to the cover.

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

Car insurance can provide a range of benefits, with higher levels of insurance providing a greater range of perks and cover. You may be able to choose some of the below features to add to your policy as optional extras if they don’t come as standard. Note that adding extra coverage options will likely cost you more.

Should I get comprehensive car insurance in Victoria?

Whether you’re driving through the streets of Geelong, ascending the Victorian Alps or travelling 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 less than two years old as additional inclusions, according to the terms and conditions of your policy. The full list of inclusions and optional extras will be listed in the relevant Product Disclosure Statement (PDS)

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

How much will car insurance cost a driver in Victoria?

The cost of car insurance will change for each driver, because your premiums are calculated using a variety of factors that are usually unique to you. Some of these factors include:

This chart shows some example comparisons for comprehensive car insurance in Victoria and compares just how much of a difference location can make to the price of car insurance.

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

Car insurance in Victoria premiums graph

Sources

Source: Compare the Market quote, produced 26/10/21. 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 Victorian postcodes of 3182 (St Kilda) and 3630 (Shepparton). Comprehensive Insurance was quoted based on a $900 excess, whereas Third Party Property Damage and Third Party Fire and Theft were quoted based on a $600 excess. For St Kilda, average Comprehensive and Third Party Property Damage prices based on quotes provided by PD Insurance, Carpeesh, Eric, Budget Direct, ING, Virgin Money, 1st for Women, Huddle, Ozicare, Stella, and Woolworths. For Shepparton, average Comprehensive quotes provided by Budget Direct, ING, Virgin Money, Woolworths and Huddle, 1st for Women, Ozicare, Woolworths, and Retirease. Third Party Property Damage quotes were provided by PD Insurance, Budget Direct, ING, Virgin Money, Huddle, and Woolworths. Third Party Fire and Theft quotes were provided by Budget Direct, ING and Virgin Money for both St Kilda and Shepparton.

How does living in Victoria affect your car insurance?

Your car insurance premium is in part affected by the state or territory you live in. However, it can also 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.
  • Where you live. Is your home in a safe part of Victoria? Or does your neighbourhood have a high rate of car thefts or is in a floodplain or bushfire zone?

Car theft in Victoria

Victoria has one of the highest rates of car thefts in all of Australia. While the COVID-19 pandemic made the number of car thefts take a sharp dive, there were still more than 10,000 passenger cars and light commercial vehicles (vans and utes) stolen in Victoria during the 2020 to 2021 financial year, according to the National Motor Vehicle Theft Reduction Council.2

Victorians with Third Party Fire and Theft or comprehensive car insurance can be covered against car theft, plus any malicious damage caused by an attempted car theft.

 

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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 or out in the 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 Victorian town has safe roads but a high rate of car thefts. Or your inner-city suburb home is safe from thieves and your car is garaged at night, but you live near a busy intersection that has lots of crashes. Taking out a new policy for either situation might cost a bit more than somewhere with low rates of theft and accidents, regardless of where it is in the state.

Compare car insurance through our free comparison service today.

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 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 in Victoria 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 (e.g. due to busier roads). Where you park your car can also affect your premiums.
  • The colour of your car. Colour can also affect your premiums as some hues 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.

Compare car insurance through our free comparison service today.

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. Choosing a higher level of excess often lowers premiums. However, the excess is paid when you make a claim, so that’s important to keep in mind. When comparing car insurance with Compare the Market, set the excess to match the excess on your current policy to get a like-for-like comparison.
  • Restrict the age of drivers. Younger drivers are riskier to insure. Making sure you only allow drivers over a certain age (e.g. 25) to drive your car 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.

Compare car insurance through our free comparison service today.

Sources

1 Theft Watch – 12 months to June 2021: All motor vehicles. National Motor Vehicle Theft Reduction Council. 2021.
2 Theft Watch – 12 months to June 2021: Passenger/light commercial vehicles. National Motor Vehicle Theft Reduction Council. 2021.

Stephen Zeller, General Manager

Meet our car insurance expert, Stephen Zeller

As General Manager of General Insurance, Stephen Zeller works hard to make sure motorists are equipped with knowledge on how their insurance works and how comparing policies can benefit them.

Stephen has more than 30 years of experience in the financial services industry, and is an Allied Member of the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and helps review general insurance content on Compare the Market to ensure it accurately breaks down complex insurance topics.

Car insurance tips from Stephen

  1. You might like to consider a low annual kilometres policy if you don’t drive a great deal during the year. This can reduce your insurance premium.
  2. Even if you are driving less it’s important to keep your car maintained. Keeping your vehicle in good condition is not only great for your personal safety but also ensures you’ll have fewer issues if you need to make a claim.
  3. Check your tyre pressure regularly and ensure it’s at the correct level stated in the user manual. This helps keep you safe and prolongs the life of your tyres.
  4. If you’re planning on an adventure into the high-country during winter make sure you take snow chains with you and get a good bottle of anti-freeze.

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