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Message: <blockquote data-quote="Egon-E39" data-source="post: 253766" data-attributes="member: 8754">guys...Why insurance do not pay you according to the insured amount?  Insurance always wants you to insure at the market value so that they can get the max premium from you.  But when they have to pay it will be below "market value" which is quite subjective.EG. Car is insured at 50k today.....submit claim for theft the next day and is paid 40k.  Insurance co will say 40k is the market value and due to public policy or something like that.....to prevent fraud.How does fraud come into the pic?....say you want to sell your car at 50k but dealers will only pay say 43k and you cannot get it sold at 50k so what do you do?  You drive the car into a lake/river and claim for compensation at 50k and get 50k instead of 43k.  Insurance co recognizes this and came up with a mechanism to prevent fraud.  Perhaps someone in the motor vehicle insurance could give better explanation?</blockquote>