Hmm, if you are only going to have to spend 250 and will not have to deal with increased premiums go for it. Find the best looking shop in town, and get a written warranty (they should cover their workmanship for life) plus the ins co should offer you a lifetime warranty on the repair. Have them replace that fender and blend the door for a good match, and make sure they remove the ft bumper cover befor they paint.

Ouch!... The bumper should be fine with some touch up. The fender should only run about $100, unpainted..

Just buy the fender already painted the same color from ebay or one of the mazda forums. It is not hard at all to do. Since its your first time you can replace the fender in a couple of hours. Look at the new fender and see where the bolt holes are and start taking them off the old car.