I met the Insurance agent at my LBS, she looked at my wrecked 2003 Trek 520, took a few pictures and stroked me a check for 90% of the list price of a new 2007 520. The good thing was that I kept the wrecked bike, as it had many upgrades; Ultegra crank, XTR RD, Thomson seat post, Brooks B-17n etc... Be sure to stand your ground and recoup your losses.
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"When I hear another express an opinion, which is not mine, I say to myself, He has a right to his opinion, as I to mine; why should I question it. His error does me no injury, and shall I become a Don Quixot to bring all men by force of argument, to one opinion? If a fact be misstated, it is probable he is gratified by a belief of it, and I have no right to deprive him of the gratification."
T. Jefferson