Actual Cash Value (ACV)
/AK-choo-ul kash VAL-yoo/
Your car's current market value, accounting for depreciation.
Definition
Actual cash value is what your vehicle is worth at the time of loss, calculated as replacement cost minus depreciation. If your car is totaled, you receive the ACV minus your deductible. This is often less than what you paid for the car or what it would cost to buy a similar new car.
Example
The 5-year-old car was purchased for $30,000 but its ACV at the time of the accident was only $12,000.
More Auto Insurance Terms
Insurance that pays for damage or injuries you cause to others.
Coverage for injuries you cause to others in an accident.
Coverage for damage you cause to others' property.
Insurance that pays to repair your car after an accident.
Insurance for non-collision damage like theft or weather.
Protection if you're hit by an uninsured driver.
Ready to Get Insurance Quotes?
Now that you understand actual cash value (acv), compare rates from top insurers and find coverage that fits your needs.
Get Free Quotes