How much is car insurance in Victoria?
Average comprehensive car insurance cost in Victoria
Comprehensive cover is much more variable than Transport Accident Commission (TAC) insurance. There are lots of different factors that influence how much your premiums will be: the driver’s details, the vehicle, how much it will be used, where it will be driven, etc.
According to Canstar research, these are the average comprehensive car insurance premium costs in Victoria for various drivers:
Driver profile | Annual premium |
|---|---|
Female, under 25 | $3,819 |
Male, under 25 | $4,254 |
25-29 | $3,169 |
30-49 | $2,418 |
50+ | $1,863 |
Family | $4,275 |
Source: Canstar - 24/09/2026. Based on comprehensive car insurance policies rated in Canstar’s 2026 Car Insurance Rating. Premiums include quotes for both new and used cars for a range of scenarios, with a target excess of $900.
How much is the Victoria transport accident charge?
Like in every other state and territory, all Victorian drivers must have compulsory third party (CTP) insurance, covering you (financially at least) if you injure or kill someone in an accident. In Victoria this is known as the transport accident charge (TAC).
The TAC is included when you register your vehicle in Victoria. You pay a single fee that incorporates both your registration and the TAC.
What you’ll pay can depend on the type of vehicle you’re insuring as well as where you’ll be driving it.
The Victorian Government distinguishes between metropolitan or high risk zones which are mostly in Melbourne and Geelong, outer metropolitan (medium risk zones) and rural areas (low risk zones). You can check which area your postcode falls under on the Transport Accident Commission website.
Here are some of the standard annual cover rates applicable from 1 July 2026:
Class of vehicle | Cost to insure | Cost to insure | Cost to insure |
|---|---|---|---|
Sedan, station wagon, | $606.10 | $544.50 | $471.90 |
A vehicle designed, | $607.20 | $460.90 | $319.00 |
Motorbike between | $401.50 | $353.10 | $303.60 |
Source: tac.vic.gov
Types of car insurance in Victoria
Insurance on top of the TAC is optional, but highly recommended. There are typically three main categories of private insurance:
- Third party property damage (TPPD) usually covers you for damage you cause to other people’s vehicles
- Third party fire and theft (TPFT) covers you for everything TPPD does, plus damage to your from fire or theft
- Comprehensive insurance is the highest level of optional cover in Australia, covering damage to your own vehicle from accidents and often including extras like roadside assistance or windscreen replacement.
Every insurance policy is different and comes with conditions and exclusions, so it’s important to read the product disclosure statement (PDS) to understand exactly what you’re paying for.
How to save money on insurance premiums in Victoria
If you’re looking to save on your insurance, there are a few possible ways you might be able to reduce your premiums:
- Shop around: There’s a wide range of insurance providers in Victoria. You might find prices significantly different between insurers, so it’s usually worth comparing car insurance to find a provider and policy that suits you.
- Increase your excess: Generally increasing your excess (what you’ll pay if you need to make a claim) decreases your premiums. However, you’re effectively gambling that you won’t have a crash, so if you’re more risk averse you might want to keep your excess lower.
- Drive less: Generally when you apply for car insurance you’ll be asked to estimate how often you’ll be using the vehicle. If you can (truthfully!) report fewer kilometres, you might be able to pay lower premiums.
- Check if you’re eligible for TAC concessions: TAC cover is generally fixed, but concessions are available. If you’re a pensioner for example, or a veteran of the Australian Defence Force, you may be eligible to have your premiums reduced.
- Live outside of Melbourne: TAC is also significantly more expensive in ‘high risk’ postcodes, which are all in Greater Melbourne. Comprehensive cover might also be cheaper if you’re in an area with less traffic.
How to compare comprehensive car insurance policies in Victoria
Choosing the right car insurance policy isn’t just about the price. Other factors you may want to consider alongside premiums include:
- Policy inclusions (e.g. are the risks most relevant to you covered by the policy?)
- Policy exclusions
- Claims process
- Excess options
- Any discounts on offer (e.g. online discounts or no claim discounts).
Best car insurers in Victoria
Canstar’s 2026 Outstanding Value Awards - Car Insurance recognise the providers deemed to deliver outstanding value on their car insurance policies. AAMI won the 2026 Outstanding Value Award for Victoria, while the national winners were:
- AAMI
- Bingle
- ROLLiN
Keep in mind these awards are general, across a wide range of possible drivers. The right policy for you might not be among these award winners, so it’s important to compare based on your own circumstances.
