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Tazman.....Your insurance company should work for you to try to resolve the issue with the other insurance company.
thats something that a few people have had a problem with. insurance companies want to low ball cause kbb doesnt give a good quote or something. one thing is you could get copies of barrett jackson or gas monkey and show them its worth 40k lol.
on a side note my wife was busted with a red light ticket similar to this scenario. except add rain to the mixture. the semi cleared the red light but my wife had no time to stop by time she saw it. i never did pay the ticket but im kind of interested in how yours plays out