When you reject a settlement offer from the insurance company, you can make a counter offer or the insurance company can make a counter offer.  The insurance company can retract its original offer, but this depends on the particular insurance company or adjuster as to what path they follow during negotiations.  It wouldn't make sense for the insurance company to offer less than their originial offer since that would be unacceptable to you.If the case is NOT settled with the insurance carrier, you will need to file a lawsuit for negligence against the at-fault party in the accident and the registered owner of the vehicle if the registered owner is someone other than the at-fault driver.  You would file one lawsuit for negligence naming both the at-fault driver and registered owner as defendants.  If the case is NOT settled with the at-fault party's insurance carrier, your lawsuit must be filed prior to the expiration of the applicable statute of limitations or you will lose your rights forever in the matter.