I think you should take the 50K first

This is will get the insurance out of the way. Then you can sue the guy for the extra money. Maybe you can sue him yourself if no attorney wants to take the case. You don't need attorney because the case is clear cut. I am not so sure whether you can get the money or not, even if you win the case. If the guy has no job and no assets, it's hard to collect from him.