No fault only applies to medical injuries and it means that no matter who was at fault for the accident, each party has to file with their own medical insurance company to pay for injuries. That means that his insurance company told you to get medical attention because they know there is no way they will have to pay for it. Getting rid of no fault laws will mean the driver that is at fault is responsible for all medical bills but it will also mean liability insurance rates will go up because insurance companies know they will have to cover other parties involved instead of just you if you are at fault (still better that way in my opinion).

As far as vehicle damage, you should have called the cops to file a police report. Much better to get a hundred dollar ticket than stuck with thousands of dollars in repairs. The fact that he pulled out in front of you means you probably rear ended him... Without witnesses to state otherwise, it is your word against his and by default the person that rear ends is at fault, not the person that got rear ended. I had this exact thing happen to me, someone pulled out in front of me, but witnesses told the cops conflicting stories so it came down to my word against his, as soon as that happened it was ruled my fault since I rear ended him (bullshit, but not much I could do). With no insurance, if that happens in your case you are screwed because it means all expenses will be out of your pocket. Also, if you called the cops, there would have been a record of him admitting guilt and it would have been over. Now he can change his story and you are possibly screwed.

Sorry this got a little wordy, but moral of the story, always file a police report and get insurance! By the way, glad to hear you made it out with only a tweaked knee, hope you heal up quickly.