Analysis of Insurance Statistics Australia data released on Thursday reveals more cars were stolen or broken into in Melbourne than every other capital city combined.
More than 12,300 motor vehicle theft and burglary claims were lodged in Victoria in 2025/26, with most from metropolitan areas.
Every other state and territory in Australia recorded a decline over the same period, the Insurance Council of Australia report said.
Paying out the Victorian claims cost insurers $244 million, up from $223 million in 2024/25 and $52 million in 2021/22.
In Queensland the cost was $113 million, in NSW $98.7 million, Western Australia $22 million, South Australia $17.9 million, the Northern Territory $4.3 million and Tasmania $4.2 million.
Data on property theft and burglary claims, publicly released for the first time, also showed Victoria fared the worse of any jurisdiction, with 3900 last financial year.
However, total claims in that category were down year-on-year from 5100 and payouts dropped from $67.2 million to $57 million.
Over the 12-month span, the council's chief executive Andrew Hall said a car was stolen or broken into every 43 minutes and a home broken into every two hours in Victoria.
"Victoria has a crime problem, and it is being felt directly by households, businesses and communities," he said.
The data analysis formed part of the council's election platform, with crime a major battleground as the coalition and One Nation try to unseat the three-term Labor state government in November.
The insurance lobby has recommended the next Victorian government develop and implement a dedicated statewide strategy to reduce car theft and property crime.
It is also pushing for a state government-led and funded clean-up arrangement for future major disasters, the abolition of stamp duty on home and contents insurance and modernisation of civil liability laws to improve insurance affordability.
"This election is an opportunity for every party to commit to these practical reforms that will make Victoria safer, strengthen disaster recovery and put downward pressure on insurance costs," Mr Hall said.
A final update of official Victorian crime statistics before voters head to the polls is scheduled to be released later in September.
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