As the owners of hire cars, car rental companies have Compulsory Third Party (CTP) insurance for their vehicles in Australia.
CTP insurance provides cover for vehicle owners and drivers legal liability where a car accident causes injury or death to other drivers, passengers, cyclists, motorcyclists or pedestrians.
CTP insurance does not cover damage to the hire car or other parties property or car. When hiring a rental car, Customers have a rental vehicle excess that provides cover for car damage.