Being Sued Almost 2 Years After A Car Accident For Maximum $250k

2 years ago, my girlfriend was hit by a car on the campus (me and my gf are college student). She stopped at the stop sign (not all way). When she thought that the car on the left side of the intersection was still quite far away, she went straight, and then they collided. According to her, the other driver looked like no problems. The other driver drove a quite large car, and my gf drove a Honda Accord. He even got out of the car and approached her car first. Luckily, no ambulance, just police and it ended there.

A month ago, she received a document from a man who knocked on her door early in the morning. The document was from a lawyer and represented the driver in the accident 2 years ago. I don't remember clearly, but that lawyer talked about things like:
- Send this document to her insurance company or they will sue
- The driver contacted my girlfriend's insurance company but was not compensated for physical and mental injury
- Now, they want compensation for physical and mental injury. This will be maximum $250k
- Accused my girlfriend of: failing to take care about the driver, letting the driver get out of the car and taking care her first,...

She has contacted the insurance company and will be working with the insurance company's lawyer soon. All the information we have is that the insurance will pay up to maximum $50k for her, and the insurance company's lawyers will represent my girlfriend at the first two court sessions. If an agreement cannot be reached in these sessions, my girlfriend will have to go to court in third court session.

We know it's our fault, but can you all give us some advice? She is a student, first generation college student and I am an international student. We don't have that much money. What should we do now? I want to ask for your advice on this case because that's all I can help my girl friend.

Thank you so much.