With car theft surging in one Aussie state, drivers are being urged to “go back to basics” to protect their vehicles — even dusting off old-school deterrents like steering wheel locks.
While motor vehicle theft claims have fallen across every other state and territory, Victoria has bucked the trend in a big way. In the 12 months to June 2025, the state recorded a 59 per cent jump in claims and a 70 per cent spike in incurred costs, with more than 12,000 claims totalling $223 million.
Metro Melbourne was hit hardest, with claims up 70 per cent and costs soaring 80 per cent, totalling 10,000 claims worth $183 million, according to the Insurance Council of Australia.
The picture looks very different elsewhere. In Queensland, motor vehicle theft claims are down 11 per cent and costs are down 10 per cent year-on-year. Western and South Australia both saw a 10 per cent fall, while NSW dropped three per cent. Comparing South Australia’s claims to Victoria, its claims totalled only $16 million.
Insurance Council of Australia CEO Andrew Hall said Victoria now accounts for nearly half of the national cost of stolen cars — and its surge is so large that it cancels out the declines seen in other states.
Organised crime appears to be behind Victoria’s rising car theft rates
“More expensive cars are being stolen in Victoria and just not being recovered,” Hall told Yahoo News. “So that points to the presence of more systemic organised crime. It must be that there’s been a signal that Victoria’s the state to target, and it is a real worry and probably also suggests that there’s a lot more depth to this.”
He stressed it’s not only high-end vehicles being hit. The figures also capture “a lot of suburban theft and attempted theft”.
“Many of these numbers reflect cars that are damaged by people trying to break into them, then requiring repair,” Hall said. “But when you see Victoria now representing nearly half of the total cost nationally, we can see that a lot more expensive cars are not being recovered, just disappearing altogether in the Victorian market. That’s really the major alarm bell.”
Victorians are being urged to better protect their cars, amid a surge in thefts. Source: Camden Council
Why does car theft impact all Australians?
Incredibly, car theft in Australia costs almost half a billion dollars each year, hitting all drivers. Insurance premiums are shaped by a range of factors, but one major pressure point has been the rising cost and availability of parts and skilled labour.
That’s become particularly difficult in recent years, Hall said, with most parts imported and modern cars far more complex and expensive to repair.
“All of that drives the cost of premiums. Where your car is garaged can also influence a premium. If crime is occurring in your area and the data builds a profile for it, it can add cost and a loading to your premium,” he said.
Hall said the ICA is working closely with Victoria Police to address the problem, but in the meantime, motorists can help themselves.
“It really comes back to basics: make sure your car is locked, in a garage with a lockable door, and keys are away from the car,” he said.
“In extreme circumstances, people are returning to devices that make it very difficult to steal a car, like club locks or steering wheel locks. These have become more prominent in other markets around the world, like the UK. A steering wheel lock makes it very difficult for anyone to steal your car.”
In the past year, Victoria had more than 12,000 motor vehicle theft claims, costing insurers $223 million. Source: ABC
Hall explained that car security has evolved significantly over the years. He recalled that when he was at university, his old Peugeot 504 could be broken into with something as simple as a coat hanger, which is why he used a club lock.
The arrival of electronic fobs in the early 2000s — which automatically locked cars and set off alarms — gave drivers a false sense of security. But that complacency has created new risks. Thieves now either steal keys or use sophisticated devices, such as signal repeaters, to capture the fob’s signal from inside a house and unlock the car
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