Auto Insurance Claims: Need to know or dont need to know, mechanic lien, use car

Question
Do you have to reveal to an insurance company where and how much you paid for a vehicle?  I purchase my car from a use car dealer through a mechanic lien for a great price with a clear title.

Answer
Hi John,

No. You do not need to reveal what you paid for the car. The only thing the insurance company needs to know is what the fair market value of the car is. The value of your car is established based on the open market an what other cars like yours are selling for. Not what you paid for it.

I hope this helps
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Richard Hixenbaugh