Car Insurance Paying Repair over Total Loss?

Hello all,

I purchased traveller's insurance with AIG for my rental and it was unfortunately totaled and determined to be my fault. The insurance claims to cover up to $30k.

Enterprise (the rental company) sent AIG two quotes - one for repairing the vehicle ($19k) and one for paying the total loss value ($22k).
Per AIG's terms, they pay the lower of the two provided (as anyone would), so they paid $19k.

Enterprise came back and billed me $3k because they determined the vehicle to be a total loss and would not repair it.

Is this a standard "insurance strategy" to get out of paying out the full claim? I honestly cannot see how I am due anything if I purchased a $30k policy and Enterprise provided two bills but won't accept the paid out amount.

Is there a claim I can file or what options do I have here?