Victoria has been declared Australia's crime capital after explosive new data revealed the state is recording car thefts and home burglaries at a rate that dwarfs every other state and territory. Figures released by the Insurance Council of Australia show Melbourne alone is generating more motor vehicle theft insurance claims than all other Australian capital cities combined — a finding the industry body's chief executive has described as "really extraordinary".
The data shows Victoria recorded more than 12,300 motor theft insurance claims in the 2025–26 financial year, costing insurers $244 million, with the bulk of claims originating from metropolitan areas. On the home burglary front, Victoria recorded nearly twice as many claims as New South Wales and Queensland combined — a staggering imbalance that has prompted calls for urgent government action.
In practical terms, the figures translate to a vehicle being stolen or broken into in Victoria every 43 minutes, while a home is broken into every two hours.
A stark national outlier on crime
What makes the Victorian figures particularly alarming is the broader national trend moving in the opposite direction. Every other state and territory recorded a decline in both motor theft and home burglary insurance claims over the same period, leaving Victoria as a clear and troubling outlier.
For the first time, the Insurance Council also made public its data on property theft and burglary claims, revealing almost 3,900 claims in Victoria in the past year alone, costing insurers more than $56 million.
Insurance Council of Australia CEO Andrew Hall said the figures demanded a serious response rather than passive acceptance.
"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," he said.
Hall argued that Victoria had effectively become the path of least resistance for criminal activity. "I think crime targets the weakest link. And at the moment, it's targeting Melbourne and it's targeting Victoria."
Recovery rates low, pressure on police approach
Compounding the problem is a low vehicle recovery rate, with insurers reporting that many stolen cars are never returned to their owners. Hall acknowledged that police were working hard but said the current approach was not producing results.
"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."
Hall pointed to Queensland as a jurisdiction showing what targeted policy can achieve, noting that "adult crime, adult time" laws had made a measurable difference — particularly in addressing petty offending that he said acts as a pipeline into more serious organised crime.
Impact on insurance premiums and calls for reform
The surge in claims is not just a law-and-order problem — it is hitting household budgets across the country. Hall warned that Victoria's crime rates are contributing to rising insurance premiums for policyholders nationally, not just within the state.
"There are things that can be done. They do impact premiums around the country. It is a risk we can control," he said.
With a Victorian state election on the horizon, the Insurance Council has released a formal policy platform calling on the next government to take decisive action. The body is demanding a statewide strategy to reduce car theft and property crime, stronger intelligence sharing between agencies, targeted prevention measures, and investment in specialist law enforcement capabilities.
The council is also calling for the abolition of stamp duty on home, contents and business insurance products, arguing the move would return $2.3 billion to Victorians and ease cost-of-living pressures linked to insurance affordability.
The revelations come as rising costs and financial stress continue to shape the political landscape — factors explored in our coverage of how household debt and house prices are fuelling political shifts across Australia. Meanwhile, questions about which cities carry the heaviest crime burdens are increasingly central to national policy debates, as earlier reporting on the crime capital conversation in Australia has highlighted.
"We can get on top of crime in this country. We don't have to accept that it's somehow the normal," Hall said.
