While the risk of vehicle theft currently comprises a small part of insurance premiums, alarming rises in the number of claims made for increasingly expensive vehicles inevitably mean insurers will have to start charging more, the Insurance Council of Australia (ICA) has warned.
Adjusted for inflation, claims across the country in 2015 were valued at approximately $218 million (US$138 million). By 2024, this figure had risen to $428 million, a 96 percent increase.
In comparison, total claim numbers rose from 22,000 in 2015 to 28,000 in 2024, a 27 percent increase.
ICA Deputy Chief Executive, Kylie Macfarlane, said theft rates contribute to broader insurance cost pressures.
“Motor vehicle theft, while currently a small part of insurance premiums, is a growing concern,” she said.
“The value of motor vehicles has increased significantly since 2015, as has the cost of parts and labour, putting upward pressure on premiums across the country.
“This new data analysis shows alarming rates of motor vehicle theft claims in some parts of the country, which will ultimately cost us all.”
Queensland experienced the biggest jump in claims over the period, with rural and regional areas hit particularly hard.
The data revealed 6,919 car theft claims were made in the state in 2024 compared to 3,434 in 2015—an increase of 101 percent.
And the stolen vehicles were worth $113 million in 2024 compared to $28 million nine years ago, a nation-leading 305 percent increase. Those in rural and regional areas most frequently made insurance claims: more than 4,000 in 2024 compared to 2,000 in 2015.
Victoria didn’t fare much better. Total claims rose 70 percent, with a nation-leading 9,816 made in 2024 compared to 5,778 in 2015.
The value of the claims was $173 million in 2024 compared to $60 million in 2015—an eye-watering increase of 188 percent.
Frequency of Claims Also Up
The frequency of theft claims—measured as a proportion of total insured vehicles—also rose most sharply in Queensland and metro Victoria.Rural and regional Queensland saw a 62 percent increase, while metro Queensland and metro Victoria recorded 39 and 34 percent rises, respectively.
In contrast, vehicle owners in Western Australia (WA) experienced a decline in theft claim frequency between 2015 and 2024.
The rate remained steady in rural and regional New South Wales (NSW) and South Australia (SA), while metro NSW areas recorded a decrease.
NSW made 5,718 car theft claims worth $101 million in 2024, WA made 4,316 claims worth $25 million, and SA made 1,473 at $16 million.
Rising numbers of thefts—and vehicles becoming more expensive—would combine increases in parts and labour costs to drive premiums upwards, the Insurance Council warned.
Whereas thieves used to target older vehicles with traditional keys, which could be started by breaking their steering lock and connecting wires that led to the older-style keys, thieves are now capable of stealing cars with push-button starts.
They use electronic devices that, when plugged into the vehicle’s OBDII diagnostic port—freely accessible in the interior—either program or mimic the key. This technique is now being used in one in every five car thefts in Victoria.
As a result, police in Victoria and NSW say Holden Commodores are now among the most-stolen cars in both states, with thefts of that brand increasing by 92.9 percent in the 12 months to January 2025, with a sharp rise noted in those manufactured between 2013 and 2017.
Toyotas were also popular with criminals, with thefts increasing by 76.4 percent for models made in the 2010s, such as the HiLux, LandCruiser, Camry, Prado, RAV4, 86 and C-HR.
There was also a 107 percent rise in Subarus made between 2015 and 2018.
