[gthal]

This is why you should carry replacement cost insurance. My insurance covers a new car equivalent to the one I purchased for 5 years. After that it is depreciated value. Absolutely worth the $10 a month extra in premium IMO.

Given the mileage on the car, I have to say that I actually think BMW was fair to you. I think it is unreasonable to expect them to give you a new car... maybe if your car was almost new but not at 40K miles. I think the offer of $7,500 in addition to the depreciated value is fair... more than fair. BMW could have just let you deal with the insurance company and that would have been poor service on their part. Asking them to replace your car is effectively you asking them to reimburse you for the use of the car since you bought it. You benefited from that use and it isn't free, right? So, if they had done nothing and you bought a similar value car (acknowledged that diesel was out) with the depreciated value insurance, you would be in the exact same position as you were before the fire. Driving a 2009 BMW with ~40K miles. By offering you $7,500, you had the opportunity to be better off than you were for you trouble.

Anyway, I do feel badly for you... I am just not sure the offer wasn't fair.