[Hoop]

When deciding on the AGREED VALUE, keep this example in mind.

Say you have a nice Model A Roadster and cleverly insure it for $10,000 Agreed Value. It's a little less than it may be worth, will save you some premium, but it provides plenty of coverage for fender-benders for sure.

Your long-time family owned A is then caught in a major hurricane. The insurance company declares it a total loss at $10,000.

The A becomes theirs, after paying you the full amount of the coverage, since they have all salvage rights. You have the option of buying it from them, and you tell them you'd like to do that.

They agree and tell you the current bid for the salvage is $13,000 ... remember they have all salvage rights. You have to bid on it, and it'll cost you closer to $14,000 to get your Model A back.

(Actually happened, Hurricane Katrina, Louisiana. "We know a thing or two because we've seen a thing or two.")