Car Theft Claims Skyrocket, Raising Insurance Concerns

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

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.

Share this news item:

Insurance News

Clear

Record Complaints Highlight Challenges in Australian Insurance Claims Processing

29 Apr 2026: Paige Estritori

The Australian insurance industry is currently facing an unprecedented surge in consumer complaints, primarily due to delays in processing claims. This development underscores significant challenges within the sector, particularly affecting tradespeople and small business owners who depend on timely claim resolutions to maintain their operations. - read more

Assessing the Impact of Market Consolidation on Australian Insurance Competition

29 Apr 2026: Paige Estritori

The Australian insurance industry has undergone significant consolidation in recent years, leading to concerns about reduced competition and its potential impact on consumers, particularly tradespeople and small business owners who rely on diverse and competitive insurance options. - read more

Australian Senate Prohibits Use of Genetic Test Results in Life Insurance Underwriting

29 Apr 2026: Paige Estritori

The Australian Senate has recently passed legislation that prohibits life insurers from using genetic test results in their underwriting processes. This landmark decision aims to protect consumers from potential discrimination based on their genetic information and to ensure fairness in the assessment of life insurance policies. - read more

Government Steps In to Secure Fertiliser Supply for Australian Farmers

29 Apr 2026: Paige Estritori

In response to global supply chain disruptions affecting fertiliser availability, the Australian government has partnered with chemical companies CSBP and Incitec Pivot to ensure a steady supply for the nation's farmers. This initiative comes amid challenges posed by the closure of the Strait of Hormuz, a critical passage for global trade, which has led to increased prices and uncertainty in the fertiliser market. - read more

CGU and WFI Insurance Collaborate with Ag Guard to Boost Agricultural Coverage

29 Apr 2026: Paige Estritori

In a strategic move to bolster agricultural insurance offerings, IAG's Intermediated Insurance Australia business, encompassing the CGU and WFI Insurance brands, has announced an exclusive partnership with Ag Guard, a technology-driven agricultural insurance agency. This collaboration, set to commence in June 2026, aims to enhance risk selection processes and claims handling capabilities. - read more

Click for more Insurance News