Since requirements, rules and policies vary in every state concerning auto insurance, I am only familiar with our state policies and rules.
One rule do know here is that the insurance company is required to make you "whole" with a comprehensive or collision claim.
You can total your GN, but if it is a $10K car and $20K value with have agreed or stated value policies, they are only obligated to replace your car with one of like condition, or pay the market value.
Over many years I have helped many owners with wrecked and stolen GN's, and all have received fair settlements.
Common sense make it obvious that someone can insure a GN for $25K agreed or stated value, but if it is only worth 1/2 that value, that is what the settlement will be.
Even if your car a $25K engine, this value must be well documented, and even then there will be MUCH depreciation applied as it is a "wear" item as well as non-stock.
My original 1987 car with 9500 miles is insured for $25K, and since it would not, or could not be easily replaced, if at all, they would easily settle this claim. Beyond that amount, it may be difficult or never happen.
Our state, like others, does allow for contesting an insurance company's offer to settle a claim. This procedure allows each party to present their case to an independent mediator whose decision is final.
Like everyone, I hope I NEVER have to use my insurance, and wish you all the same. But if you do, just remember the insurance company must make you "whole", but not rich!
