Insurance may pay only $500 in damages, but with a $500 deductable means that if the frame is worth brand new $1200 they will pay $500. Therefore it is worth it to file a claim with the insurance company to at least collect the $500. Giant may have a discount program (usually at company cost or wholesale) for a new frame if your old one is damaged so look into that. Also an LBS can play with the insurance company by saying that the cost of a new frame, without the crash discount, is at suggested retail of $1200, then without the insurance company's knowledge get the frame with the wholesale or crash discount of lets say $800 thus you would only be out $300.