State Farm Insurance Passenger in Car Rearended by State Farm Insured Murfreesboro, Tennessee

I was a passenger in car stopped during construction on a major Lexington, KY road.  A State Farm Insured rearended us while we were stopped; the other driver's air bag deployed. After seeing the approaching car in the rearview passenger mirror, I did not see any evidence that the car was slowing and I had time to say to the driver of the car I was in "We are going to be hit".  Which she responded with "I don't know".  Then the hit happened.  This happened in September 2010; since that time, I have been to physical therapy for neck, shoulder and arm injuries, which $10,000 of was covered by the driver of the car I was in paid for (not State Farm) - Now that the injuries continue, State Farm refuses to pay or settle for an amount even as much as the total medical bills and I am continuing to have smaller medical bills which my personal health insurance is now covering the most.  The total so far of just medical bills is $21,000.  Needless to say State Farm is offering settlement of $12,000.  I still have headaches, arm pain and shoulder aches.  It was obvious and the police report indicate it was obvious their driver was at fault.  Do they really want to go to court over this?  If we go to court, I will not stop with just sueing the insurance company, I will continue with their negligent insured.  So be aware when shopping for insurance that State Farm is not your best bet, they will put your property in jeopardy because they refuse to come up with an agreeable settlement for an obvious negligent act.