Understanding how much car insurance costs in Victoria, Australia is essential for every driver. Here are typical car insurance costs broken down, key factors that shape pricing, and practical tips for finding the right cover.
Car Insurance
What is RACV Third Party Fire and Theft insurance?
What is RACV Comprehensive Car Insurance?
Why choose RACV Car Insurance?
More than one million Victorian drivers choose RACV Car Insurance for great value and quality cover. Let’s look at what makes it a popular choice.
Choosing the right car insurance means finding a policy that fits your needs, budget, and driving habits. Factors like coverage options, excess amounts, and optional extras can make a big difference in how well your policy protects you. RACV Car Insurance, for example, ranges from basic cover to comprehensive protection, with policies designed to suit different drivers, giving you both flexibility and peace of mind.
Why is having quality car insurance important?
Crime Statistics Agency data shows car theft offences in Victoria are at a 10-year high, with 33,018 thefts recorded in the 12 months to June 2025 – a 42.1 per cent increase on the previous year. The impact of increased car theft is also reflected in insurance data.
RACV’s General Manager for Insurance and Roadside, Bill Bloodworth, says the most recent data from Insurance Statistics Australia reveals that every 18 minutes a claim is being lodged for car theft in Australia.
“Victoria has experienced more than 12,000 motor vehicle claims totalling $223 million in the 12 months to June 2025 – the largest annual increase on record,” Bloodworth says.
In addition, the risk of being involved in vehicle collision is high. Motor vehicle insurance data from Insurance Manufacturers of Australia (IMA) for the year ending June 2025, shows there were:
- 23,480 claims for damaged whilst driving
- 18,959 claims for damaged whilst parked
- 15,955 claims for third party failing to give way
- 14,336 claims for third party hitting insured in the rear
- 13,542 claims for insured hitting third party in rear
- 11,289 claims for insured failing to give way.
“The main reason to get car insurance is the financial protection it offers in the event of a collision or vehicle theft,” Bloodworth says.
“A product such as RACV Comprehensive Car Insurance helps protect you from financial loss if your car is stolen, vandalised, or damaged in a collision or storm. If your car is written off or stolen, then you’re not left stranded. This type of coverage provides valuable peace of mind.”
More: Most common car insurance claims
Which RACV Car Insurance policy is right for me?
What is Compulsory Third Party (CTP) insurance?
In Australia, it is illegal to drive a car on public roads without Compulsory Third Party (CTP) insurance. CTP covers your liability for injuries caused to other people in a motor vehicle accident where you are at fault. In Victoria, CTP is issued by the Transport Accident Commission (TAC) as part of a car’s annual registration fee. Driving without CTP can result in severe penalties, including fines and loss of licence.
What is RACV Third Party Property Damage car insurance?
This is basic cover for unintentional collision damage to other people’s property and vehicles. Third-party car insurance can be seen as a more affordable way to help cover an older car, but the coverage is limited.
A key benefit of having RACV Third Party Property Damage is up to $5000 in limited cover for damage to your vehicle if you’re not at fault in the collision, the other driver is uninsured, and you can provide their details. Not all car insurers offer this feature with third-party property damage policies.
Find out more about RACV Third Party Property Damage.
What is RACV Third Party Fire and Theft insurance?
This type of policy helps provide cover for unintentional damage caused to other people’s property. You are also covered for up to $10,000 if your car is stolen or damaged by a fire.
You might choose this option if you have an older car. But it’s important to be aware that the coverage is limited, and you could face considerable out of pocket expenses for repairs or replacement of your car.
Find out more about RACV Third Party Fire and Theft.
What is RACV Comprehensive Car Insurance?
This is the most popular type of car insurance because it offers comprehensive protection, with a choice of agreed or market value. It can protect you for the repair or replacement of your car following a collision, theft, fire, vandalism and weather-related damage. Regardless of who is at fault, you and anyone permitted to drive your vehicle, will be covered for collision damage to your vehicle and other people’s property.1
You can also add optional extras to suit your needs and budget, such as hire car cover, windscreen cover with no excess or pick your own licensed repairer.
If you own an electric vehicle or plug-in hybrid, RACV Comprehensive Car Insurance will cover the cables and adaptors that come with the car. You will also have access to RACV's EV and hybrid-qualified partner repair network, and the chance to save on public charging at participating Chargefox stations.
Find out more about RACV Comprehensive Car Insurance.
What is RACV Complete Care® Car Insurance?
This is the highest level of coverage offered by RACV Insurance. This level of cover is chosen by drivers who want premium protection with more inclusions. RACV Complete Care® Car Insurance has all the benefits of RACV Comprehensive Insurance, plus extra inclusions such as a hire car for any insured incident, excess-free windscreen, sunroof and window glass repairs, and a higher cover limit for emergency transport and accommodation if your car is undriveable, and the incident was more than 100km from home in Australia.
If you have an EV or plug-in hybrid, RACV Complete Care® Car Insurance offers premium protection for the cables and adaptors, access to RACV's EV and hybrid-qualified partner repair network, and the chance to save on public charging at participating Chargefox stations.
Find out more about RACV Complete Care® Car Insurance.
Need help with your car insurance quote? Start your car insurance quote estimate here. RACV Insurance team members are available 7am-11pm, every day. Call 13 72 28.
What are the benefits of RACV Car Insurance?
RACV Car Insurance comes with instant RACV Member Benefits
A RACV Car Insurance policyholder automatically becomes a member of the Royal Automobile Club of Victoria (RACV) Limited. As a membership organisation, everything the organisation does is to benefit members, while all RACV's two million members receive access to a wide range of benefits. There are member benefits and deals across multiple categories, including:
- Fuel and motoring
- Movies and events
- Attractions and experiences
- Travel and holidays
- Food and dining
- Home and energy.
RACV loyalty discounts and multi-policy discounts
RACV offers loyalty discounts and multi-policy discounts to RACV Members, including:
- Loyalty discount - the longer you're an RACV Member, the greater your discount on selected products with RACV's Years of Membership benefit*
- Multi-policy discounts - take out two or more eligible policies and save up to 10 per cent on each, including Home and Car Insurance*.
More: RACV Members save on these RACV products and services
RACV Car Insurance is award-winning
From basic cover to comprehensive protection, RACV Car Insurance is trusted by more than one million Victorians. Two recent awards endorse the exceptional quality cover and great benefits:
- RACV Car Insurance - 2025 winner of WeMoney’s Best for Member Benefits Car Insurance.
- RACV Complete Care® - 2025 winner of the Mozo Expert Choice Awards: Exceptional Quality Car Insurance.+
+ RACV Complete Care® Car Insurance recognised in Mozo Experts Choice Awards 2025 - more information on the awards research methodology at https://mozo.com.au.
RACV Car Insurance features and benefits
The features and benefits that make RACV Car Insurance stand out include:
- Tailored cover: You can choose from four levels of cover, optional add-ons, and flexible excess to suit your budget (select policies only).
- Coverage for all drivers: Includes learners, whether listed on the policy or not.1
RACV Complete Care® and Comprehensive policies only
- Unlimited hire car: Available until your vehicle is repaired or your claim is settled in the event of a recoverable claim where you are not at fault and you can provide the at-fault party's details.
- Lock, barrel and key replacement: If your vehicle’s keys are stolen, up to $1,000 above any basic excess to replace or re-code your vehicle’s keys, locks, and barrels.
- Emergency accommodation: Up to $1,500 for RACV Complete Care® and up to $1,000 for Comprehensive policies if your car is undriveable and the incident occurred more than 100km from home in Australia.2
- Cover for personal items: Up to $1,000 for RACV Complete Care® and $500 for Comprehensive policies.3
Third-party policies
- If you are not at fault: If you are hit by an uninsured motorist and are not at fault, and you can provide the at-fault driver’s details, your vehicle is covered up to $5,000.
Customer care
- Support: Available from 7am–11pm every day for quotes and general enquiries.
- Claims: You can make a claim 24/7 via the RACV app, online, or by calling 13 19 03.
Please refer to the Product Disclosure Statement (PDS) for full details.
RACV advocates for safer roads in Victoria
RACV is committed to making Victoria’s roads safer through a multifaceted approach. By working closely with government, conducting research, and engaging the public via initiatives such as Have Your Say and the My Melbourne Road survey, RACV identifies issues such as dangerous intersections and roads across the state.
For over 60 years, RACV Drive School has played a vital role in educating learner drivers. By helping to develop safer, more confident drivers, the Drive School contributes to the protection of all road users in Victoria.
Additionally, RACV offers a comprehensive range of road rules guides, vehicle safety and security advice, and educational resources for Victorian drivers. Available on its website and YouTube channel, these materials cover topics from general safety and give way rules to merging and the safe use of mobile devices.
What customers say about RACV Car Insurance
Mozo - financial comparison site
‘Great coverage and options, loyalty and multiple policy discounts, along with a reputable insurer.’
‘Good value, competitive premiums and great multi-policy discounts.’
Product Review - consumer opinion site
‘It’s been a long time since I’ve been so impressed with the level of professionalism, understanding, care and genuine empathy.’
‘Comprehensive coverage and fair terms and conditions. Good value and competitive premiums.’
About RACV
RACV is a Victorian-based mutual organisation offering services including roadside assistance, insurance, banking, and travel, alongside home services like trades and solar options. Established in 1903, it aims to improve lives through its products and services, with a focus on motoring, home, energy, and leisure. Members can access exclusive benefits, savings, and a range of resorts and holiday packages.
RACV Car Insurance explainers and helpful guides
The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678
*The Multi-Policy Discount and Years of Membership Benefits exclude Travel, Business and Farm Insurance products. To qualify for the Multi-Policy Discount, you must hold two eligible RACV Insurance policies. For further details, see the Premium, Excess and Discounts guide at racv.com.au. Discounts will only be applied until any applicable minimum premium is reached. On renewal, any increases or decreases in your premium may be limited by factors such as your previous year’s premium. You may not save more with more eligible policies and by staying with RACV Insurance longer if a minimum premium is reached, or limits have been applied to increases or decreases in your premium.
1 Additional drivers: Cover is subject to policy terms and exclusions. Provided they meet policy conditions and have your permission to drive your vehicle. Additional excess applies to drivers under 25 or with less than 2 years' driving experience.
2 Emergency Transport and Accommodation: Up to $1,500 in total for RACV Complete Care® policies & up to $1,000 for RACV Comprehensive Car Insurance for emergency accommodation and transport for you and your vehicle if your vehicle is damaged in an insured incident more than 100km from your home in Australia and cannot be driven.
3 Personal Items: This is correct for all vehicles except motorcycle which is up to $2,000 to repair or replace protective clothing.
