NO, you couldn’t be more wrong.
The insurance company, if the insured is found 100% at fault will have to pay all of the repairs. Only way they would have to pay 60% is if they were found only 60% liable. I have never made a claim to my insurance for a accident that wasn’t my fault. It has happen to me 2 times, and both times I spoke directly with the other persons insurance company and mine never knew a thing about it. And his insurance sent out an adjuster and mailed me a check for 100% of the damages. So if he stands his ground, and it did happen the way he described it. He will win and get 100% of the damages.