The driver's insurance should absolutely pay for everything - a whole new bike if need be. If they give you any trouble definitely contact a lawyer. I can give you another reference for someone who specializes in cyclists.
Mimi Bailey
Stritmatter Kessler Whelan Coluccio
206-448-1777
http://www.skwcbikelaw.com/

It's ridiculous that the driver wanted you to down play the whole thing. It was totally his fault - he turned in front of you! Don't let anyone try to tell you different or convince you that they don't need to pay for your injuries and damages because it was no one's fault. When a driver makes a decision it's not an act of god.... Of course it was his fault.

It's the same thing that happened to me last summer (being left hooked in Kirkland that is). I had a somewhat better experience with the police though. They agreed that it was clear cut failure to yield on the driver's part and gave her a ticket. (and a bigger one for driving without insurance...) I hope your driver gets a ticket too. As far as who pays, I would think with a rental car that *someone* has to have insurance on it, be it the driver, the company who hired him or Hertz, who owns the car.

I hope your bike is OK other than the clear damage to the front wheel and I hope you are OK too - I would encourage you to get checked out. You deserve the peace of mind and the insurance of the person who hit you should give you that. (but yes I understand the reluctance to go to the ER... I almost did not. Everything turned out fine, but the possibility that I'd cracked my knee cap was definitely there. I could stand up and walk around, but my knee had swollen so much in just a few minutes that I couldn't bend my leg)

Do be prepared for it to take some time.... I was hit in June and finally resolved all the bills in December. And my case was not all that complex. An ER visit, an X-ray and a physicians fee.