Jim,

Its called substitution of collateral. The laws are slightly different from state to state but in most cases its an option. When you start demanding they find you a suitable replacement they want to avoid that option at all costs especially with a hard to find car.

Additionally fair market value is not the figure they will try to give you. Most insurance companies start at wholesale and then move up to trade in value when you start talking real numbers. It will take a lot of fighting to even get a low fair market value let alone what the car's really worth. :(

Well, the jerks came back with a figure of $7500 for a Silver 1995 E420 w/ 108k miles that is perfectly maintained, and in excellent condition.

The battle is on! I've collected comps and am sending them my 3-page service history summary (in 9 point type) to show that they're not replacing a beater. I also make the point that because I have had my evaporator replaced at great expense, any comparable car must have had this repair performed.

What a pain in the ass!