Your bike is damaged.
The insurance company offers to pay for the cost of repairs. However, the resale value of your bike has gone down because it was damaged in an accident.
If your bike was worth $3,000 in trade value before the accident and now it is worth $2,500 in trade value, the bike's value has diminished $500!
DO NOT SETTTLE with the insurance company for damage to your bike without making a claim for diminished value.