Accident

My wife, while riding her bicycle, was hit headed on while she was riding in bike lane. Driver that hit her was cited for failure to yield. Wife suffered injuries: broken right shoulder, numberous laceration to name a few. Her bicycle received total damage. She is employed fulltime as tennis manager. According to Doctor she may need surgery and will not be able to use her right arm for many weeks. Question: Insurance adjustor advise her that since both parties were insured by same Insurance Co., she would be limited to receiving medical, doctor service and replacement of bicycle. My question: Is the insurance adjustor correct by implying that no other legal action cannot be tken.