Compare car insurance in Victoria and Melbourne
To compare car insurance in Victoria, choose a cover level, then get quotes for the same car, drivers, excess and valuation from several insurers. There is no compulsory policy to shop for here: injury cover is the TAC charge built into your registration, so every choice you make is about damage to cars and property.
Victoria's defining number right now is theft. The state recorded 24,929 motor vehicle theft victims in 2025, the most since 2002 and almost twice the figure for New South Wales. Add Melbourne's hail history and you have the two reasons Victorian drivers should think carefully before stepping down from comprehensive.
By Better Rate Mate Editorial Team · Last reviewed
Compulsory cover in Victoria
In Victoria, injury cover is the TAC charge built into your registration, paid to the Transport Accident Commission. There is no CTP insurer to choose, so everything on this page is about optional cover for damage.
For how the charge is worked out and the discounts available, see the TAC charge in Victoria, or how CTP works in every state.
Victorian car insurance at a glance
The facts below come from federal and state sources. They are the local conditions insurers price against and the risks your policy has to answer for.
| Item | Victoria |
|---|---|
| Compulsory injury cover | TAC charge, collected with your registration; no insurer to choose |
| Scheme | Transport Accident Commission, a no-fault scheme |
| Road deaths, 2025 | 290 (284 in 2024), or 4.1 per 100,000 people |
| Motor vehicle theft victims, 2025 | 24,929, up 11% on 2024 and the highest since 2002 |
| Where stolen vehicles were taken from | Residential land 38%, street or footpath 32% |
| Largest recent motor insurance events | January 2020 hailstorms (68,576 motor claims across four states); 19 December 2017 storms (38,600 motor claims) |
| Duty on a passenger car (from 1 July 2026) | $8.40 per $200 up to $80,809, rising to $18.00 per $200 above $150,000; green cars $8.40 per $200 at any value |
What the TAC charge covers, and what it doesn't
Victorians do not buy a separate CTP policy. The TAC charge is part of your registration and funds the Transport Accident Commission, which pays for treatment and support for people injured in transport accidents largely without first deciding who was at fault. There is nothing to compare and nobody to switch to.
The TAC pays nothing for vehicles. Not yours, not the one you hit, not the fence you went through. Because the charge is folded into registration, it is easy to believe registration has insured the car. It has not. Our guide to the TAC charge explains the scheme in detail; everything on this page is about the optional cover that pays for damage.
Victoria's car theft problem
The ABS counted 24,929 victims of motor vehicle theft in Victoria in 2025, an 11% rise in a single year and the highest number since 2002. That is more than a third of all motor vehicle theft victims in Australia (66,625), and nearly double the NSW figure even though NSW has more people.
Where cars were taken is just as telling: 38% from a home, driveway or garage, and 32% from the street. For insurance that means two things. Theft is priced into Victorian premiums, especially for the models thieves favour and the postcodes where they operate. And theft cover is worth keeping; third party property damage alone pays nothing if your car disappears.
Car insurance in Melbourne
Melbourne is where most of that theft happens, alongside the collision and parking-damage frequency of any large city. It is also hail country. The Insurance Council's records include the March 2010 Melbourne storm, with more than $1 billion in insured losses at the time, the Christmas Day 2011 hailstorm across the western suburbs, and the 19 December 2017 storms that produced 38,600 motor claims.
If you are comparing car insurance in Melbourne, give insurers the address where the car is actually kept overnight and whether it is garaged, in a driveway or on the street, and read the policy's hail and theft cover rather than assuming it. Some cheaper comprehensive policies cap hire car days after theft or limit choice of repairer, which matters after a large hail event when repairers are booked out for months.
Hail and storm events in Victoria
These Victorian events stand out in the Insurance Council's catastrophe records for the damage they did to cars. Only comprehensive covers any of them.
| Event | Date | Motor claims or loss |
|---|---|---|
| January hailstorms (CAT201) | January 2020 | 68,576 motor claims across the ACT, NSW, QLD and VIC |
| SA and VIC severe storms (CAT216) | October 2021 | 38,900 motor claims across SA, VIC and TAS |
| Victorian severe weather (CAT174) | 19 December 2017 | 38,600 motor claims |
| Melbourne Christmas Day hailstorm (CAT118) | 25 December 2011 | $729 million insured loss at the time |
| Melbourne storm (CAT102) | 6 March 2010 | $1.04 billion insured loss at the time |
Regional Victoria
Outside Melbourne, theft drops away and distance takes over. The regional risks are animal strikes, single-vehicle crashes on high-speed roads, and hail events that hit country towns as hard as the city. A kangaroo strike is only covered under comprehensive. If you drive long distances, check the towing limit, whether emergency accommodation is included, and how long a hire car lasts, because repairs can take longer when the nearest panel shop is an hour away.
How to find the cheapest car insurance in Victoria
Cheap only counts if the cover still does its job. These steps cut the price without cutting the cover you need:
- Compare quotes with the same excess, drivers and agreed or market value. A lower price with a higher excess is not a like-for-like saving.
- Check your agreed value at every renewal. Moneysmart warns that insurers can lower agreed value each year while the premium rises.
- Improve security that insurers ask about: garaging, an immobiliser, and parking off the street where you can.
- Shop around at renewal. ASIC-commissioned research found 74% of people with a renewal notice were quoted more than the year before, and 31% of those who asked their insurer got a lower price.
- Consider a higher voluntary excess only if you could pay it tomorrow without borrowing.
Buying a car in Victoria: duty and green cars
Motor vehicle duty is collected by VicRoads when you register or transfer a car. From 1 July 2026 the State Revenue Office rate for a passenger car is $8.40 per $200 (or part) of value up to $80,809, $10.40 per $200 to $100,000, $14.00 per $200 to $150,000 and $18.00 per $200 above that. A green passenger car, meaning combined tailpipe emissions of 120 grams of CO2 per kilometre or less including a pure electric car, pays $8.40 per $200 at any value. Arrange insurance to start the day the car becomes yours, because the seller's cover ends when the sale does.
What to watch for
- The TAC charge covers injury to people only. It pays nothing towards any vehicle.
- Theft cover matters more in Victoria than anywhere else right now. Third party property damage alone pays nothing if the car is stolen.
- Hail and storm damage need comprehensive. Fire and theft cover will not respond.
- Check your agreed value at renewal. It can drift down while the premium goes up.
- Give the insurer the real overnight address and parking arrangement. Misstating it can reduce a theft claim.
Common questions
Who is the cheapest car insurance in Victoria?
No single insurer is cheapest for every Victorian. Postcode, the car's theft risk, your age and claims history all move the price differently between insurers. Compare several quotes with identical cover, excess and drivers to find your cheapest.
Why is car insurance so expensive in Victoria?
Theft and weather are two big reasons. Victoria recorded 24,929 motor vehicle theft victims in 2025, the highest since 2002, and Melbourne has a history of hailstorms that each generated tens of thousands of motor claims. Premiums also rose nationally, by 8% in the twelve months to July 2025 according to Moneysmart.
Do I need CTP insurance in Victoria?
You already have it. The TAC charge collected with your registration provides injury cover, so there is no separate CTP policy to buy and no insurer to choose.
Does the TAC cover damage to my car?
No. The TAC covers injury to people. Damage to your car or anyone else's needs optional cover, at minimum third party property damage.
Is car insurance cheaper outside Melbourne?
Often, because theft and collision rates are lower away from the city, but it depends on the insurer and the postcode. Regional drivers trade that for longer distances and animal strikes, which only comprehensive covers.
About the figures on this page
Road deaths are calendar-year counts from BITRE; theft figures are victims of motor vehicle theft recorded by police, published by the ABS; catastrophe claims are from the Insurance Council of Australia. We do not quote premiums, because prices change constantly and depend on your car, postcode and driving history. Compulsory injury cover is explained in our CTP guides for each state.
