Definitely have Nikon quote the repair. If you decide to not do it, you're only out the shipping costs. With a quote in hand, it should be a very simple calculus to determine if repair is worth it, knowing used prices and with the confidence that Nikon will return the lens to like-new condition.
I've never undertaken a repair this major, but the few lenses I've had worked on (at El Segundo) I've been happy with the service and surprised (in a good way) at the price.
BTW I'm sorry about your lens and that sucks to hear about travel insurance that doesn't cover you while traveling!