Well the insurance company finally called...

Rbob is spot on.

This is the part of the program where you MUST put your foot down, tell them replace your bike with same model, accessories and all.

Go and find same model bike for sale by dealers and private parties. Tally that up and see where it falls.

The issues is they are giving you low book which is likely the same as a dealer trade in value. An insurance company did this to my mother on two cars, until I got involved. They initially offered $1500 for a 66 mustang GT fastback car back in 1987... they paid out $7500. On her Cutlass, they offered 3800, paid out $6K. Consider the first number as though nothing more than a first offer when selling your bike.

KBB has it for retail sale in excellent condition ~ $4500 to start before add ons.

http://motorcycles.oodle.com/2005-kawasaki-vulcan/for-sale/trim_1500/