What is your insurance limit? The insurance company should take this in their own interests and help you out. Have them go after Hertz.
The second question you need to ask youself: how serious is the injury and suffering for the passenger? Claiming for $250K is not much. If he retained a lawyer who prepared the claim, the lawyer thinks the case only worthy of $50-70k. That can be covered by Hertz and your car insurance. Experienced lawyer rarely has client go after future earnings.
Don't feel bad. It can be resolved.
- Law111