If you car is worth $12K, im sure you will find some way of insuring it for $12K. If not, grit your teeth and bear it, atleast its not being insured for less than what you paid therfore you LOSING out if its written off.
Winning a car is hardly a good compassion dude..... You and I both know you wont insure it for $0.
If you got a good deal on a car, you find someone who will agree to insure it for its true worth, simple. BUT if you cant find anyone to do so, then atleast your purchase price is better than nothing right?
Insurance is there to return you to previous conditions before a claim, not to put you in a better position, unless the insurer agrees on a higher value.
why do people wanna dog insurance companies? I dunno. I guess if your not happy with what just cars is offering, look around for cover that suits you.