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Why should the OP's insurance be responsible when he left it in the care, custody & control of the dealership with whom he had professional faith that his car would be properly taken care of? It's the dealership's responsibility to make sure their employees are properly vetted and if not, they should have the proper professional liability coverage on the DEALERSHIP to handle this bad situation, it shouldn't be up to the owner's insurance to cover it, the dealership employee HAD ACCESS TO KEYS! If you don't want people in a position of trust, DON'T GIVE THEM KEYS! If you do, prepare to face the consequences...
Yep, GEICO may be screwing him on the value of his ZL-1, also. I'm sure I wouldn't sell my ZL-1 for that price and if I could find one like the OP's for that price, I'd be on a plane tomorrow to pick it up.
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