Even if you’re not at fault when your car is stolen, you could still face higher insurance costs. As car theft rates rise across Australia, some drivers are finding their premiums increasing—or even being denied coverage, after filing a stolen vehicle claim.
A frustrated driver recently shared their experience in the Stolen Cars Melbourne Facebook group, revealing how their wife’s insurance premium jumped unexpectedly. They explained that after adding themselves as a nominated driver on her Mitsubishi Outlander policy, the cost skyrocketed, simply because they had filed a stolen car claim on a separate policy the previous year.
“When I included my details, the premium increased by over $500. But when I removed myself, it went back to normal, around $1,000 for comprehensive insurance,” they said.
Worse still, some insurers refused to cover them altogether. “Some companies won’t insure me anymore because I already had an ‘at-fault’ claim, and since my car theft was my second claim, it screwed me. Now I’m paying over $3,000 a year for insurance.”
Why Does Car Theft Impact Your Insurance Costs?
If your vehicle is stolen and you file an insurance claim, you may see a price increase, whether you’re the primary policyholder or just a nominated driver.
An RACV spokesperson explained: “Our motor vehicle premiums reflect various factors, including the likelihood of a claim and the anticipated costs of repairs or a total loss. Other considerations include the vehicle’s age, make, model, storage location, and the driver’s claims history.”
Some insurers, such as Budget Direct, even classify theft as an “at-fault” claim, which can lead to higher premiums.
Why Could You Be Denied Insurance After a Stolen Car Claim?
Insurers in Australia are legally allowed to decline policy renewals for several reasons. According to the Insurance Council of Australia (ICA), common factors include:
- Multiple claims within a short timeframe
- New information that alters the policyholder’s risk profile
If an insurer refuses to cover you, there may be little recourse. The Australian Financial Complaints Authority (AFCA) has limited power to intervene, unless the decision was made based on incorrect information or discriminatory reasons.
With fewer consumer protections in place, rising insurance costs continue to be a growing concern for car owners, especially those who have already fallen victim to vehicle theft.
