Our insurance company pays for rental cars. We actually got into an accident with a rental car the SAME DAY we got back into town from a Road Trip to New Orleans(Made it to New Orleans with no incident, got back into town..and BAM!). There was over $5,000 in damages to the car. Luckily it wasnt our fault, so the other guy's insurance had to cover the damages, but our insurance company would have covered it if it were our fault.
I started to babble, sorry!