Sucks that you have to go though it but really, you can't expect them to be jumping all over themselves to pay you. While they are financially responsible for their client, they are a business and the only way for them to make money is to not pay out claims. They're going to pay out to customers because they need to retain people and brag about their customer satisfaction ratings. But they're no going to pay anyone else unless they absolutely have to. Most people without a lawyer will eventually settle or give up for MUCH less money because of the time and effort involved. Hiring a lawyer puts them in the position of dealing with the ins company and they're not going to give up until you tell them to/stop paying them. You can get the same results without a lawyer but you will have to work much harder and longer to get it.
Now, that said at the end of the day their client injured your wife, they are responsible to pay her medical bills, vehicle damages, and likely a "pain and suffering" amount but not to exceed whatever the guy that hit her is covered up to. Bear in mind that the vast majority of people only carry the state mandated minimums for liability coverage. In CT the minimums are 10k property damage, 20k bodily injury per person/40k per event. So your wife falls under the 20/40k portion of that (if this happened in ct for example). If the driver of the car she was in sustained more than 32k worth of injuries (including pain and suffering claims and possibly lost wages though I'm not sure if thats included under injury or property) then the guy who hit them would not have enough coverage to pay your wife's medical bills. At that point the uninsured/under insured coverage carried by the owner of the car she was in comes into play, up to whatever those limits are (if any). After all of that is exhausted, your wife's personal medical insurance should take up the remaining slack less any deductibles or copays she may have.
So it is entirely possible that even after lawyering up, you will get nothing out of them. It's a shitty situation but that's how ins. works.
I'm glad she is relatively ok given the severity of the crash, hopefully having a lawyer now will get this resolved for you both sooner rather than later.