Victoria has been labelled Australia’s crime capital after new data revealed a surge in car thefts and home burglaries.
Insurance Council of Australia data shows Victoria recorded almost twice as many home burglary claims as NSW and Queensland combined.
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Melbourne alone also recorded more car theft claims than every other Australian capital city combined.
The state recorded more than 12,300 motor theft insurance claims in 2025-26, costing insurers $244 million, with the majority of claims coming from metropolitan areas.
The data shows a car is stolen or broken into in Victoria every 43 minutes, while a home is broken into every two hours.
Victoria outpaces the nation Insurance Council of Australia CEO Andrew Hall told Sunrise the figures were “really extraordinary”.
Hall said the scale of the crime problem facing the state could not be dismissed as normal.
“These are really, really big numbers. And I don’t think we should be accepting that this is normal. It clearly is not the case and we need to be getting on top of it.”
Every other state and territory recorded a decline in motor theft and home burglary claims over the same period, making Victoria a stark national outlier.
For the first time, the Insurance Council has also made data on property theft and burglary claims public, revealing almost 3900 claims in Victoria in the past year, costing insurers more than $56 million.
Calls for fresh approach Hall said criminals were increasingly targeting Victoria.
“I think crime targets the weakest link. And at the moment, it’s targeting Melbourne and it’s targeting Victoria.”
The recovery rate is also a major concern, with insurers reporting that many stolen vehicles are never returned.
Hall acknowledged the work of Victoria Police but said a different approach was needed to reverse the trend.
“I think the police are doing their very best. But clearly, something needs to change. Doing the same thing and hoping for a different outcome is not going to be the way forward here in Victoria,” he said.
“Victoria is going to have to tackle this problem in a very different way.”
He pointed to Queensland as an example of measures aimed at reducing crime.
“We are seeing other states making a real effort to get on top of that. In Queensland, the adult crime, adult time laws have made a real difference, particularly to the petty crime, which trains up the criminals that then move into the more organised crime side of things,” he said.
Insurance premiums under pressure The impact is also being felt through insurance premiums, with Hall warning crime is contributing to costs for policy holders across Australia.
Hall said governments had the ability to address some of the risks driving insurance costs.
“There are things that can be done. They do impact premiums around the country. It is a risk we can control,” he said.
“We can get on top of crime in this country. We don’t have to accept that it’s somehow the normal.”
The Insurance Council of Australia has released its election platform for the next Victorian Government, calling for a statewide strategy to reduce car theft and property crime.
It wants stronger intelligence sharing, targeted prevention measures, and investment in specialist law enforcement capabilities.
The industry body is also calling for a centrally coordinated, state government-led and funded clean-up arrangement following disasters, as well as the abolition of stamp duty on business, home and contents insurance products.
It says abolishing the tax would return $2.3 billion to Victorians.
The council is also calling for civil liability reforms to improve insurance affordability for healthcare professionals, small businesses, community organisations and live music venues.
The crime figures come as Victoria prepares for the upcoming bushfire season, with the Insurance Council of Australia warning there is still no clear or coordinated plan for disaster recovery following the January 2026 bushfires.