I would not recommend fixing for $550.00 You can replace the mower for a new one for $800. That is a crazy price. You may want to find out how much the part is and download instructions and fix it yourself. Or by the part and ask someone you know what they would charge to put it on. I would not spend 550 on a ten year old mower. It sounds to me like its been a good mower. What if you spend 550 and then then next ten year old part breaks. I recommend getting your self a new one!
If you have the model # you can look up the part to see how much it costs, www.sears.com the price seems a little steep,also some of the (electric clutches)bearings are replacable about $40-$50 + 1 hour labor if the rest of the clutch is not damaged. I've been out of the business for a while,the used to cost about $180 10 years ago labor is about 1.5 hours unless it is stuck on the shaft
I would recommend fixing versus junking.
But, that does seem like a lot for that job, maybe you could get additional estimates.
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