National Spike in Car Theft Drives Insurance Premium Hikes, With Victoria Hardest Hit

Car thefts are on the rise across Australia, leading to higher insurance premiums, with Victoria emerging as one of the most affected states. As vehicle break-ins and thefts surge, Australians are facing increased costs to protect their cars, and insurers are feeling the pressure.

Steve Mickenbecker, CEO of Canstar, highlighted the growing financial burden on insurers. "Cars are being trashed and written off, and that's a big cost for insurers to actually replace a car," Mickenbecker said in an interview with 9News Melbourne.

Data shows that Victorians bore the brunt of these increases, paying an average of $2195 for comprehensive car insurance last year—a $310 jump from the previous year, marking a 16 per cent rise. The increase comes as the number of car-related crimes continues to soar across the state.

In the Wyndham area alone, close to 2,000 vehicles were broken into or had valuable items stolen in just one year. Nationwide, police have observed a growing trend of thieves targeting unlocked vehicles, with 63 per cent of car break-ins in Victoria showing no signs of forced entry in April. Beyond traditional break-ins, criminals are now using advanced technology to hack into vehicles, tricking them into thinking the car keys are present.

The consequences extend beyond theft. "If you're leaving your car unlocked, you might actually be voiding your policy," Mickenbecker warned, underscoring the importance of securing vehicles to avoid policy issues.

While car theft is a growing issue across Australia, Victoria's statistics are especially alarming, potentially influencing the insurance landscape across the country. As more vehicles are targeted, Australian drivers may continue to see their premiums rise.

Source: 9News Melbourne