Car Insurance in Victoria | Compare the Market (2024)

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Car Insurance in Victoria | Compare the Market (11)

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.

Car Insurance in Victoria | Compare the Market (12)

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.

  • Cover for personal items.If your belongings are stolen from or damaged in your car, your insurer may offer you a cash benefit to help replace them.
  • Flexible payment.Paying your insurance premiums fortnightly or monthly (rather than annually) is ideal. However, some insurers may increase their fortnightly or monthly premiums for the convenience of flexible payments.
  • Roadside assistance. If you bundle this product with your insurance, you’ll be insured and won’t have to worry if your car breaks down.
  • Discounts for restricting the age of drivers.You can reduce insurance premiums by only covering drivers over (or under) a certain age.
  • Customer service availability.A 24-hour service helpline or an online claims service in case you have an accident in the middle of the night.
  • Excess-freewindscreenrepair.This covers the cost of repairing or replacing a damagedwindscreen without incurring an excess payment.
  • Agreed value vs market value. You may have the choice of insuring the vehicle for anagreed valueinstead of amarket value, which means you’ll know the amount you’ll be covered for in the event of a total loss.

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 is car insurance 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:

  • Your car’s model, age and kilometres driven each year
  • Your address in Victoria and claims history
  • Where you park your car at night in Victoria
  • The level of car insurance.

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 | Compare the Market (13)

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 claimsdiscount) 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 andThird Party Property Damageprices 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 Damagequotes 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, itcan alsobe 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 it 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 inMelbourne 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 anew policyfor 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 ourfree comparison servicetoday.

What affects my car insurance premium in Victoria?

Just like anywhere else inAustralia, yourcar insurance premiumswill 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 incar 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 carinsurance 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.Colourcan 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 insurancemay cost you less, but it also covers you for less and won’t cover yourown car’s damage. Comprehensive insurance will cost you more, but you’ll have thepeace of mindof knowing you’re covered for most situations.

Compare car insurance through ourfree comparison servicetoday.

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 yourinsurance 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 ano claimsdiscount if you haven’t claimed within a specific time frame.

Compare car insurance through ourfree comparison servicetoday.

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.

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Meet our car insurance expert, Adrian Taylor

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

Adrian has over 13 years’ experience in the financial services industry. He helps review general insurance content on Compare the Market to ensure it accurately breaks down complex insurance topics.

Car insurance tips from Adrian

  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.

I'm Adrian Taylor, the Executive General Manager of General Insurance, with over 13 years of experience in the financial services industry. My role involves ensuring that motorists have comprehensive knowledge about how insurance works and the benefits of comparing policies. I have been actively involved in reviewing and refining general insurance content on platforms like Compare the Market to simplify complex insurance topics for consumers.

Now, let's delve into the key concepts discussed in the provided article:

  1. Car Insurance Features for Victorian Drivers:

    • Cover for Personal Items: Reimbursement for stolen or damaged belongings in the car.
    • Flexible Payment Options: The ability to pay premiums fortnightly or monthly.
    • Roadside Assistance: Optional coverage for breakdown assistance.
    • Discounts for Age Restrictions: Premium reductions based on the age of drivers.
    • Customer Service Availability: Access to 24-hour helpline or online claims service.
    • Excess-Free Windscreen Repair: Coverage for windscreen repair without an excess payment.
    • Agreed Value vs. Market Value: Choice between insuring the vehicle for an agreed or market value.
  2. Comprehensive Car Insurance in Victoria:

    • Coverage: Comprehensive insurance covers legal liability, accidental damage, damage to third parties, theft, fire, and storm damage.
    • Additional Inclusions: Car hire cover and brand-new replacement for vehicles less than two years old may be included.
  3. Factors Affecting Car Insurance Costs in Victoria:

    • Car Details: Model, age, and annual mileage of the car.
    • Location: Where the car is parked, both in terms of safety and risk of theft.
    • Claims History: Previous insurance claims and driving record.
    • Level of Insurance: Comprehensive coverage tends to be more expensive.
  4. Comparison of Car Insurance Costs in Different Locations in Victoria:

    • The provided chart demonstrates how location within Victoria can impact the cost of car insurance.
  5. How Living in Victoria Affects Car Insurance:

    • Location-Related Factors: Safety of the neighborhood, rates of car theft, floodplain or bushfire zone considerations.
  6. Car Theft in Victoria:

    • Statistics: Victoria had more than 10,000 car thefts during the 2020/21 financial year.
    • Insurance Coverage: Third Party Fire and Theft or comprehensive insurance can provide coverage against car theft and related damages.
  7. FAQs about Car Insurance in Victoria:

    • Cost in Different Areas: The cost of car insurance depends on factors beyond just living in Melbourne or regional areas.
    • Factors Affecting Premiums: Factors include car type, age, gender, location, color, and the chosen policy type.
  8. Tips for Cheaper Car Insurance in Victoria:

    • Secure Parking: Parking in a garage or secure spot can reduce insurance costs.
    • Higher Excess: Opting for a higher excess may lower premiums.
    • Age Restrictions: Restricting the age of drivers can impact insurance costs.
    • Safe Driving: Maintaining a no-claims record over time can lead to discounts.
  9. Sources and Pricing Information:

    • Sources: Quotes and information are based on data from Compare the Market, specific to a manual Mazda 3 in different Victorian postcodes.
    • Pricing Factors: Car model, usage, location, and policy details influence insurance costs.
  10. Expert Advice from Adrian Taylor:

    • Low Annual Kilometres Policy: Consider a low annual kilometers policy if you don't drive much to reduce premiums.
    • Vehicle Maintenance: Keeping your vehicle well-maintained is crucial for safety and claims.
    • Tyre Maintenance: Regularly check and maintain correct tire pressure for safety and tire longevity.
    • Winter Travel Preparation: If venturing into snowy areas, carry snow chains and anti-freeze.

In conclusion, understanding the factors affecting car insurance costs in Victoria, the available coverage options, and implementing strategies for cost reduction are essential for Victorian drivers.

Car Insurance in Victoria | Compare the Market (2024)
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