Bicycle Mechanics - derailer hanger

I have a diamond back road bike and the rear derailer hanger stripped. I think it was due to a rather violent crash. At any rate the LBS wants to cut the rear derailer hanger off and put a new hanger on and charge me 100$. Is this my only option? I just bought a new rear derailer thinking that was the problem..then I found it was stripped. My bike is kind of beat and I'm wondering if I should replace it. I would appreciate any ideas or advice. I don't have a ton of money to throw around.

Can you clarify a bit..
Is this a steel or Al frame.
Is the hanger bent or is the thread damaged.

If it is steel and bent, there is a special tool for bending it back in shape. It is used to align frames and will be in the toolkit of any frame-builder.

If the threads are just stripped, you can get the following part to fix it:

Dropout Saver, Dropout Thickness < 7mm /Each

Item #WB-DS2: Stripped rear derailleur hanger threads are not uncommon on mountain bikes, and repairs can be difficult. $9.50 plus shipping


Order from www.thethirdhand.com (Yes, they are still open!!!)

Steel or aluminum? Explain more.

Here a few times I actually pull out droputs and braze new ones on depending on the cosntruction. Never charged $100.00. Much much less. However you may want to paint them. Locally I have a friend that can paint the whole frame for around $80.00.

There are other options. Ask around.

It's a steel framed Diamond Back Expert road bike. I thought the quote was a little high as the hanger was bent but not that bad. It just became stripped from a wreck. It's not THAT bad. The LBS actually referred me to another LBS for that. I geuss I should try a different LBS? I was thinking there should be some kind of reverse thread insert like rider mentioned. Any further assistance would be appreciated. By the way, you guys rock thanks for the help so far.