The story sounds very odd, maybe you had a quarter stick of dynamite under there,
I would talk to the local police to see if they have any other local victims, and
make sure that you file a report. You might luck out and get some info from the cops.
You might read your car policy carefully to see if the adjuster is giving you a snowjob.
The story from your mechanic sounds bogus to me too, and I'm with Klaus, I'd get the car to a muffler shop for a second opinion. Their prices are crazy and if they are planning to change the gasket, they can pull the manifold and then heat the broken studs with a Oxy-Acetylene torch and take them out with vise grips which is likely to be easy, and not $400 X2.
Get some ear protection to drive it to a muffler shop for an estimate.
Good luck, Bill
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