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The dent is easy to get to, but the crease makes it more challenging to achieve 100% removal and the black color is unforgiving. Worst case, pay for the dent removal, see how it looks and replace the fender if it doesn't look good. $175 is still about twice what it should cost.
I'd eat this one before contacting the insurance Co. Even replacing the fender shouldn't cost much more than your deductable. It isn't worth having a prior claim on file with them in case something else happens and you really need coverage.
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