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It's frustrating but you can see their point. They just base it on what they can find.
Get that value. Buy it back. You'll be quite a bit up had you ever sold it.
You can fight with them for months, comes to a point where it's best to just cut your losses and take what they offer mate...
Check your actual usage. See what mins/text/date you actually use and see from there. Some of the GifGaf plans etc are really good and will work out a fair bit cheaper.
I don't think it should count TBH.
This is a competition for things you can do yourself. Without someone helping you, the pictures are just average. They've been made good by someone else.
Gally - http://www.cliosport.net/forum/member.php?29864-gally
But as much as your insurance excess is high, you're fighting a losing battle with it.
That sort of damage, to sort to a decent standard, will be thousands.
Call the insurance company. Take the hit. Move on.