What if you lost your lower unit, it was a torguemaster for a opti 250. The estimate came back at 7300 and the insurance company only wants to pay out 3700 bucks, Then how would you feel about it? Fair? My fault? Sorry insurance Co? Both?
I am extremely pissed off, What is the point of insurance?
After a couple of responses I will reveal the insurance company that so many want to praise on here.

You did say "estimate" as in singular. Have you gotten more than one just to insure you weren't thrown a big number just to see if you would bite? As an example, someone on here posted this week that they blew their powerhead. The shop where he took it quoted $9500 for a rebuild on a Mercury Pro XS 250, which got a "say what?" response out of multiple members. I have't gotten such an estimate for mine, but I understood from a shop owner buddy that such a rebuild would be under $4000 if he was doing a typical rebuild for such a motor.

I have no idea what the right numbers are for a lower unit, but I'd say you should get multiple estimates, and try to pick shops you have some good referrals for. THEN blow up if appropriate.

If your close to Lake Palestine, both my sons have had recent major work at the Ranger dealer at Lake Palestine, on the main highway, middle of lake area. They were very fair and did good work on both. They both were Very satisfied.

Is this an after market lower unit?