Victoria remains Australia's car crime capital, with motor vehicle theft insurance claims continuing to surge despite every other major state recording falling claim numbers.
New analysis released by the Insurance Council of Australia (ICA) shows Victoria recorded a 25 per cent increase in motor vehicle theft claims during 2025, accompanied by a 37 per cent rise in incurred costs compared with the previous year. The state's theft claims totalled more than 12,500, costing insurers $243 million – more than the combined total of all the other states included in the analysis.
The problem is particularly acute across metropolitan Melbourne, where insurers recorded 10,400 claims worth $205 million. Compared with 2024, metropolitan claim volumes increased by 30 per cent while costs jumped 42 per cent.
By contrast, every other state analysed recorded an improvement. Western Australia posted a 15 per cent reduction in motor theft claims, South Australia recorded a 14 per cent decline and Queensland experienced a 12 per cent fall – the state's largest percentage decrease on record. New South Wales also improved slightly, with claim volumes falling 1.6 per cent after increasing the previous year.
Nationally, motor vehicle theft claims increased by 2.5 per cent to around 29,000 claims during 2025, with insurers paying $485 million in incurred costs. However, the ICA noted that excluding Victoria, Australia would have recorded a 10 per cent reduction in claim numbers and an eight per cent fall in claim costs.
Insurance Statistics Australia data also revealed theft claim frequency declined across every state except Victoria. In metropolitan Victoria, the incidence of motor vehicle theft claims increased from 0.35 per cent to 0.46 per cent of comprehensive motor vehicle policies, despite the total number of comprehensive motor policies increasing by just 2.2 per cent nationally.
ICA CEO Andrew Hall said the figures highlighted a growing problem unique to Victoria.
"A car is stolen or broken into every 42 minutes in Victoria. This level of crime is not acceptable," Hall said.
"Each year, Victoria's numbers stand apart from the rest of the country, and that gap is widening.
"While every other State is effectively reducing car theft, in Victoria the volume of claims and the costs involved remain at unacceptable levels and that sustained pattern is what's most concerning."