No arbitration unless you and other driver/ins co enter into an agreement to arb. best bet is to sue in small claims for property damage, up to 10k. You still need to prove the liability of the other driver, and your damages.
You cannot take the other party to arbitration unless he agrees to it. You can sue him in small claims court. If he loses, his insurance company will be required to pay for repairs to your car.
If you were injured, you should retain an attorney to advocate for your position regarding the liability of the other driver. If it is just a property damage claim then, yes, you can file a small claims action and receive up to the jurisdictional limit of $7,500.
Nothing in this communication should be construed as creating an attorney client relationship. This is for informational purposes only. Attorney will take no action on your behalf unless and until a written retainer agreement is signed. There are strict time deadlines on filing claims and, as such, you are advised to consult with and retain an attorney immediately to file such claims timely or you will lose any right to recovery. Any testimonials or endorsements should not be construed as a guarantee, warranty or prediction of the outcome of your case.
If you were injured, consider consulting an attorney, its fairly common for the other insurance company to say it was your fault, sometimes its legitimate, and sometimes its purely a scare tactic, talk to a local attorney about the accident and see if he or she thinks the mva was your fault. For instance, recently, I had a client who was rear ended at a traffic light - despite this, they told him it was his fault and refused to honor his property damage or injury claims until he hired me. It's a typical trick sneaky insurance adjusters love to pull.
If you were hurt you should contact an attorney in your state. If not, consider small claims court. Many property damage claims go to small claims court as an attorney many times is not needed. Make sure your insurance company fills out the proper required papers for your state to protect your license. In Indiana it is an SR21. Good luck.
*This information should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
As some of the other car accident attorneys have explained, you may want to consult with an experienced motor vehicle accident lawyer if you were injured in the accident. Otherwise, small claims court may be a viable option. Best of luck.