Melbourne’s car crime wave sees insurance premiums soar in inner-city suburbs

A Melbourne pharmacist is spending $500 more to insure her car in Hawthorn instead of Frankston— and car thefts in the state’s leafy inner east are to blame.

Rising car thefts and crime in inner-city Melbourne have driven up insurance premiums, with one Victorian discovering it cost her $500 less to garage a car in Frankston than in Hawthorn.

Victoria was crowned the country’s car theft capital in September after data revealed a staggering 59 per cent spike in car thefts in the past financial year — with the majority of insurance claims made in metropolitan Melbourne.

Pharmacist Perri McCarthy lives in Hawthorn, but operates one of her pharmacies in Frankston.

She had garaged her Toyota Corolla at her home address for years, originally using it as her personal car before converting it into a company car for her Frankston-based business.

Perri McCarthy’s car insurance premium is $500 more expensive at her home in Hawthorn than at her company address in Frankston. Picture: Andrew Henshaw

The car was eventually moved to Frankston full time, and when it came time to renew her insurance policy this year, her broker asked her if she wanted to update the garaged address.

“I had to renew everything and he gave he got some quotes for the Corolla and firstly he quoted, the best quote we got was $1,830 to comprehensively insure the car,” she said.

She wanted to do the right thing, updated the details to Frankston, and feared it would come back with an increased premium.

“So we updated it to Frankston and then he came back to me and said, ‘Okay, so this is slightly weird, but when we updated the address to Frankston from Hawthorn, the premium went down by $498’.”

Melbourne has become Australia’s car theft capital. Picture: NewsWire/ David Crosling

She was “blown away” by the 27 per cent reduction, but said that when she spoke to staff at her Frankston outlet they told her “everyone gives Frankston a bad name but you know, it’s bloody Hawthorn, that’s the problem”.

Ms McCarthy said in February a group of machete-wielding youths twice attempted to steal her personal car from her Hawthorn home.

“They came with the machetes outside my house. That was three of them with machetes, and yeah, they were caught and bailed the next morning.”

Teens in an allegedly stolen car, who were arrested in Hawthorn East Picture: Alex Coppel

Hawthorn MP John Pesutto said residents were paying a “financial penalty” for rising crime rates.

“Not only is the Allan Labor Government failing to keep these thugs off our streets, crime rates are now so high in areas like Hawthorn, that insurance premiums are exploding as a consequence,” Mr Pesutto said.

“Wherever you live, you have a right to live safely – with crime rates up everywhere, we’re all paying a financial penalty now as well.”

Hawthorn MP John Pesutto said residents were paying a “financial penalty” for rising crime rates. Picture: Jake Nowakowski

A spokesperson from the Insurance Council of Australia explained that in the last financial year Victoria’s rates of motor vehicle thefts had experienced the largest increase on record — claims up 59 per cent and costs up 70 per cent, with more than 12,000 claims lodged totalling $223 million.

“Motor theft claims have been climbing significantly over the last decade, and while they only make up a small part of overall motor claims, this rise – particularly in metro Victoria – is a growing concern,” the spokesperson said.

“Everyone pays for car theft, through increased costs of policing, courts and ultimately insurance. We cannot accept this level of car crime as normal in Australia.”

Originally published as Melbourne’s car crime wave sees insurance premiums soar in inner-city suburbs