The cost of vehicle theft claims has nearly doubled since 2015, according to a new analysis from the Insurance Council of Australia.  

Data from Insurance Statistics Australia shows the industry paid $428 million last year, up from $218 million in 2015 (historic dollar values are inflation-adjusted).  

A 27% increase in the number of claims, to 28,000 from 22,000, was driven by regional Australia. Metro areas recorded a slight decrease in claims frequency.  

By state, Queensland and Victoria had the most notable rises over the period.  

The number of claims across Queensland doubled, with the total cost increasing to $113 million last year from $36 million in 2015. During this time, the number of vehicle policies increased by 32%.  

Victoria’s numbers were driven by a sharp increase in metro area thefts, with 7823 recorded last year – much more than any other major metro area. These thefts cost $140 million.

The state’s total cost of claims rose 70% to $173 million.  

Claims numbers fell in WA and NSW metro areas, and SA recorded a slight increase.

The data shows a 26% rise in the overall number of vehicle policies written, increasing to 12.1 million last year from 9.6 million in 2015.  

ICA deputy CEO Kylie Macfarlane says the figures highlight a “growing concern” for insurers.  

“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,” she said.  

“However, the frequency of motor theft and the cost of that theft, as recorded by the insurance industry, should not go unrecognised. This new data analysis shows alarming rates of motor vehicle theft claims in some parts of the country, which will ultimately cost us all.”

Insurance Statistics Australia is a voluntary association that manages data and information on behalf of its insurer and reinsurer members as well as ICA. More information is available here. 

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