Auto Insurance Claims: Car Total Can i Keep it ?, property damage coverage, lien holder

Question
I was in an accident which totaled my car, the other driver was at fault although i did not have insurance at the time i won the case, the adjuster told me my cars value was 12 thousand, but then told me the insured clients property damage coverage was only 5 - 10 thousand , so now they want me to take a 10 thousand dollar settlement although i still owe 10,640 . with that being said it dosent pay off what i owe the lien holder. They have sent me DMV title form to transfer the title, and a letter stating i cant sue their client for the rest of the money if i accept the 10 thousand... i do not feel thats right because the 10 thousand dose not pay the car off. Can i keep the car? what can i do? Can they do that?

Answer
If they only have $10k coverage then that is all you can get from their insurance company.  You can certainly sue the individual for the balance but there is no guarantee that you'll ever collect it.

If you still owe on the car then you are liable for the payoff.  The person that hit you did not make the decision to assume the liability on a car that is worth less than you owe.  What if some bank was willing to loan you $50,000 on that car.  Should that make the other party responsible for that as well?  

Good luck.