First off realize not everyone gets a 160 that is the 80th percentile of test takers and 80% of people who are college graduates and motivated enough to actually show up for the LSAT don't score that highly. This will be the same when you go to law school when 100% of people on the first day of class firmly believe they will be in the top 10% just as the LSAT scenario described above displays you don't need to be a math major to see that 90% of people will not meet their expectations.
With that said is it possible to raise your score? Absolutely if you didn't study at all. The LSAT is a test you can raise your score by 10-15 points from your original diagnostic in my opinion. I took a practice LSAT cold came got a 144 not knowing what anything was. I studied for a few months received a 157 went to a law school, graduated, passed the bar, and became a lawyer. I didn't go to Harvard, Yale, or Stanford either and odds are neither will you again only 1% or so of applicants get in there. However, you don't need a 160 to get into law school or go to Harvard to become a lawyer.
As far as what to do in your particular situation the LSAT in it's current state is an everything to gain nothing to lose situation as I understand it. The vast majority of schools have done away with averaging scores and take only your highest. If you receive a 148 next time around it won't really hurt you as 151 will be your score. If you receive a 160 then you got you wanted. However, I would check with any schools you were seriously interested in before taking the LSAT to find out if me the anonymous internet poster who has no repercussion for being 100% wrong is in fact correct the schools will know far better than me.
One other thing I tell anyone considering law school is the longer you wait the less likely it is to happen. If you have a 151 and above a 3.0 you can get into a few schools and if the location, cost, and your personal feeling about the school feel good go for it. The longer you wait to enroll the more likely life is going to get in the way of you ever going. That may be a good thing if you don't really want to be a lawyer, but a terrible thing if it is something you really want to do.
You could also apply to the schools you are interested in now and if they reject you bummer if you get accepted great. If you get rejected then retake the LSAT get a higher score and re-apply it shows sincere interest and desire to go law school which I imagine admission committees would like. However, I urge to check with the schools to make sure that is the case.