How bad is this?

It's BAD. Sorry. You need to find someone who does collision work and restores vehicles. Look at some of there on going work and completed jobs. Don't go to a one man shop (99% of the time) go to someone with a crew. Let them write the estimate not the insurance company. When you find the shop you want have the give you a time in writing also. And listen to some of the other good advice given to you.