Your level of treatment is dictated by medical findings, not the severity of the accident. You have an attorney, and once you are represented, he is your best resource for all of your questions.
It sounds like your claims person is trying to force you to pursue them for every benefit you are entitled to, and that is just wrong. However, that is a battle for your attorney now. I would expect that he would begin to push for your benefits to resume and for treatment consistent with your injuries.
I would also ask your attorney if you are entitled to sue the driver directly, but do remember that auto insurance policies are limited to paying out within the limits of the policy. Apparently NJ has two insurance options, and one does not automatically include a bodily injury liability coverage unless it is chosen as an option. It also appears that the minimum coverage is between $10,000-15,000 per incident, which could be easily maxed out. And there is always the chance you were hit by an uninsured driver or one who has let their insurance coverage lapse. Another question I would ask the attorney is if your employer's auto policy might cover you, or even your own under-insured coverage. However, most insurance is paid as reimbursement, meaning you pay the bills and submit them after-wards to the insurance company.
But, truly, your first step may be to familiarize yourself with how worker's compensation works in your state. Not only are you then better able to tell if your attorney is working hard for you, but it also helps you separate what you think should happen from what the law actually provides. Much frustration with w/c is due to lack of understanding of how comp was deigned to work, and unrealistic expectations on the part of the injured worker.
We live in a rainbow of chaos. ~Paul Cezanne