IPhone 5 smashed screen/ Replacement?

I have had my iPhone 5 since November but never took out insurance on it as i have always had a case. I dropped my phone in the street yesterday and was met with an unpretty sight. My screen as smashed but is still working although a chunk of the black under the screen is also missing in the top right corner. Basically what are my options and what's best?

I took it to to network which i have my contract and they told me because i have no insurance they would just send it to apple for repair for around £200 which seems abit steep.

My friend has also told me to take it to an Apple store for around £100 they will take my phone and give me a refurbished one? Is that true and is there any warranty with that? I don't want to swap it to find the refurb.one has problems.
Is there anything else i can do?

Well you can get an xperia z, that's probably the best option you hav

Your refurbished one has a 3 month warranty on it. I've had my iphone 4 and iphone 5 both replaced with refurbished ones and they haven't given me any problems. I would recommend it.