insurance company is denying my claim and they want me to make a statement with there lawyer. what should i do?

Probably wise for you to consult with an attorney.  Generally speaking, if your own auto insurance company is asking for a statement, you have to give it to them pursuant to a condition in your insurance contract that requires you to cooperate with their investigation into your claim.  However, where they have denied your claim, there should be no reason they need a statement from you (unless they are denying your claim because you failed to give a statement or failed to cooperate).  Talk with an experienced attorney about the denial of your claim.  If the claim was improperly denied, you may have a claim against the insurance company.  It would be best for you to speak with an attorney before you agree to give a statement to the insurance company, and would probably be a good idea to have him/her present during the giving of your statement.  Good luck.