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Car Theft Claims Skyrocket, Raising Insurance Concerns

Car Theft Claims Skyrocket, Raising Insurance Concerns

Car Theft Claims Skyrocket, Raising Insurance Concerns?w=400

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The Insurance Council of Australia has unveiled substantial data revealing that the expense related to vehicle theft claims has almost doubled since 2015.
Last year, the industry handled $428 million in claims, signaling a stark increase from $218 million a decade ago.
The data comes from Insurance Statistics Australia, which has adjusted historic dollar values for inflation, highlighting an urgent trend in rising car crime claims.

Particularly striking is the 27% rise in claim numbers, growing from 22,000 to 28,000. Interestingly, this surge is primarily driven by regional areas in Australia, though metropolitan zones noted a slight decline. State-wise breakdown shows Queensland and Victoria witnessing the most significant rises in claims.

In Queensland, the total cost of vehicle theft claims soared to $113 million from $36 million in 2015, coinciding with a 32% rise in vehicle policies. Victoria reported 7,823 metro area thefts, costing $140 million, marking a notable escalation in both numbers and expenses.

Conversely, a decline in claim numbers was noted in Western Australia and New South Wales metropolitan areas, while South Australia saw a marginal increase. Overall, the number of vehicle policies escalated by 26%, reaching 12.1 million from 9.6 million in 2015.

Kylie Macfarlane, the deputy CEO of the ICA, pointed out the rising vehicle values and increasing costs of parts and labor as significant contributors to the upward pressure on premiums nationwide. She emphasized recognizing the frequency and cost of motor theft as documented by the industry, indicating widespread implications that could affect consumers broadly.

Insurance Statistics Australia, a voluntary body managing data for insurance stakeholders including the ICA, underscores the growing concern with its latest findings. This trend necessitates vigilance, given its potential impact on the insurance landscape and consumer costs.

Published:Monday, 24th Mar 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Elimination Period:
The time period between an injury and the receipt of benefit payments from an insurer, particularly in disability insurance.