I was in a car accident where I was at fault, my insurance company is not settling. Do I need to hire my own attorney?

My wife was in a car accident where she was at fault. The other driver sued 18 months ago for a soft tissue injury. I have a $250k policy limit. The other driver missed a few weeks of work due to an endoscopic discetomy. His attorney has demanded $150k. I was told by the claims rep that the case went to arbitration and they awarded $50k, which was rejected. The claims rep is now using the arb. award as leverage and offered $55k, which the plaint. rejected. My claims rep is telling me there will be no more negotiations, and that the trial is set for sometime in April. I sent a letter to my insurance-appointed attorney demanding that they settle within the policy limit. What if the verdict is over my policy limit? How can I be held liable when the insurance co. could have settled? I feel as if they will just roll the dice and take this to trial. They keep telling me that $150,000 in an unreasonable demand, but this is a young man in his 20''s that was injured so I''''m worried.