What to do in the case of an accident (discussion)

Just wonder if anyone can help me with a bit of advice regarding my accident:
About a month ago I was knocked off as I exited a roundabout. The car struck my left chain stay writing off the frame and rear wheel, the impact with the floor destroyed my saddle and brake levers. The car stopped and after initially loosing my rag in a big way I calmed down and we swapped details. Unfortunately I had not seen this thread till i got back home so took no witnesses. Initially they said I was going too fast (until I pointed out had I been going any slower I would have gone through their windscreen!) then they said I had no lights on (until I pointed out the fact that I had 3!). First of all they said that they would just pay up so not to have to bother with their insurance however after receiving the quote to replace the bike etc they changed their minds.
After chasing the insurance company for two weeks they have finally come back saying that he is not admitting liability but they will pay out £350 for the bike (about half of the quote) and for a couple of the bits and £250 for my bruising. Is it worth pursuing this or just settle? I have photos of the marks I left on the road so it is clear I had right of way. Will him not accepting liability affect me?
Cheers for any help.
Contact the police immediately. They will take a full accident report of the scene (probably take them a month or two to get round to it) and the accident from the perspective of both participants.

Then I also suggest contacting Cycle Aid http://www.cycleaid.co.uk/site/home/ and they can advise you properly on what to do next.

Cheers