Thanks for that info Nate...does a lot for me 6 years later.

I talked to my agent after it happened and he let me know that he was also very upset with the settlement that they gave. He said "you pay for full coverage to get the worth of the vehicle if something like this happens...why would you pay almost double to get half of what its really worth?"
Pretty sure its not them being out to get you....its the law that if your vehicle is registered it has to be insured. If you drop your insurance for the winter that would mean that the vehicle SHOULD not be registered as well....hence them requesting you turn in the plate to it.