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For this minor amount of damage I'd want to avoid respraying the back half of a car with immaculate factory paint.
$700 for the lip. 400 for painting it (assuming it comes unpainted). and 300 for installing it and other miscellaneous damage.
Ask the guy for $1400. If he says no, then tell him your going to go through ICBC.
Then after you get the money, you get to decide if the damage warrants you buying a whole new lip and going through all the hassle. You could just get a really good detail and get the detailer to wetsand and polish that area good, and then pocket the other $1000.
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