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Well thats what I would have thought too.... if you or I were to do the repair.
BUT for a "pannel shop" to do the repair try inexcess of 2 grand!

But thats not the onl porblem. Turns out that due to the nature of the impact ( 90 degrees to the rear wheel) the whole rear axle is rooted. I suspect the axle is bent and a shockload has been sent through the diff centre ( its bloody noisy!)
Again for a "pannel shop" to do the repair on the whole rear axle assembly try another 1500 big ones.
this brings a total repair cost to $3500 ....remember you or I could do this for probably $5-600 but thats not how an insurance company looks at things.

An ASS-essor is suppose to be coming out early next week to make a final desision on the poor little thing but the repair costs are now out weighing the insured value.
Heres a couple of pics..




and the axle leak..