If its just the lowers that are damaged, buy the bike back whip them off, tidy the rest of the damage up and ride it!!! You can always replace the lowers at a later date.
Crazy to think that an insurance company would write a 3k (?) bike off for that damage, but as has been said, take into account parts and labour and thats what costs!
Edit: Just noticed in the other pic your exhaust has snapped! Good excuse to change it
, as has your rear brake lever. I dont think these go for much?
Good luck with it all, take it you were ok?