My question involves insurance law for the state of: California
My motorcycle was vandalised in a theft attempt (in California) and I filed my insurance. The insurance company totalled the motorcycle and I received an offer which was well below what I perceive the real value of motorcycle, therefore I started writing to my insurance company to raise that offer. This went on for about six months. They offered me to get an appraisal done by person of my choice but I don't think any appraiser can get the fair value of the motorcycle six months down the line as the value of the motorcycle depreciates over time.
Today I received a call from my insurance company saying that since the case has been dragging on for months now, if I don't release the motorcycle to them, then they will make the offer-value payment minus the salvage value to the lien company and then return the motorcycle to me.
It did not say anything in my policy that such thing can be done, and I told them that they cannot do it. However, I will really appreciate if anyone has any idea about it, and whether the insurance company can actually do such thing?