Insurance companies

[Evan]

a $12k car but we arent going to pay out what you have been paying in" they took your money on that $12k, they are (or should be) required to pay their part of the bargain.

And if you can prove value, they will.

you've got it backwards.
if they want proof, they need it before they take your money. bottom line, you pay to insure a $12k car, its a $12k car.
"motivation to defraud" and what not is secondary to the fundamental principle.