Most likely. You need to read the section of your auto policy dealing with a third party recovery to figure out the specifics. You can always send them a request to reduce or waive the amount they are entitled to recover.
Yes, you need an attorney. You went to the doctor for you medical issues. You should see a lawyer for your legal issues. Several issues that will have to be worked out, and a lawyer is in a better position that you are to deal with them.
There are plenty of great personal injury attorneys in the Los Angeles area that can help you out. Several of them are on this website. If you have trouble finding one give me a call and I will give you their contact information. Failure to communicate with clients is one of the biggest complaints about attorneys. There is no reason why you shouldn't demand an attorney who communicates with you.
You will get a response from them in a week or two with a counter offer no doubt. It will be a fraction of your demand. If you were injured, I would consider consulting an attorney to discuss the demand you made and your injuries. Many of us provide free consultations. Good luck.
Sure. You can still do something. You have time. Contact a local personal injury attorney and they will take a look at the liability of the bar as well. It may not have any exposure to liability, but an attorney can help with that issue.
You can try contacting a personal injury attorney that also does property damage cases. Not too many handle only property damage cases like this, so it may take some time finding somebody. The other car may still have insurance that can cover your damages even though the driver was not licensed.