Just for Grins, I put the part number for the official BMW reman short engine (depends on production date, I used part number 11000427261) into the various online dealers - list is (US prices) $18k-19k but you can get it from BMW of Morristown (no affiliation/endorsement) for $12k. Would have to work out shipping with them, I guess. A decent shop should be able to switch it out for $3k in labor (~ 30 hours) and then you are within your insurance coverage.

It seems other people are encouraging you to check the condition of the engine using more testing - seems like a good idea - I would include a fiber optic inspection - most mechanics have them, and a the ACDelco unit (ARZ604, 8mm head) is small enough to pass into spark plug holes.

My 01 4.4i had the cold weather problem (CCV freezes, blows oil like crazy) which is only a few hundred dollar repair, but many people with similar experience have been told they had a blown engine, even by dealers.

__________________
David.X5
2001 X5 4.4i Sport
SOLD! at 160k miles