Ffs thats total BS
I paid more than that for mine with known engine problems.
Can't you negotiate the value by showing other similar examples? I've done that before although it was a long time ago. If they consider it a write-off and pay out surely it does get recorded?
Oh and another thing - I was looking at my headlight the other day and it looks *exactly* like your picture. Is someone mistaking the gap between the rubber seal and the plastic housing as a crack? If it doesn't need a headlight could you get them to just repair the bodywork?