Question: “What is Actual Cash Value?“

What is the actual cash value of my car? We have all heard that as soon as you drive the car off the showroom floor, the value of the car drops, this change in value is called depreciation. The basic logic stems from the fact that people are willing to pay less for a “Used Car” or truck than they would for a brand-new vehicle.

Cash Value/Depreciation

The term “Actual Cash Value” is a way for insurance companies to calculate damages at a level equal to the replacement value of damaged property, minus depreciation and the pre-determined deductible. This term applies to Commercial as well as passenger Vehicles. An easy way to think of The (ACV) Actual Cash Value of your car is what a simular used vehicles—same year, make. model, and codition—are currently selling for. One way to check is to search online for comparable vehicles, remember there can be a significant gap between an asking price and the selling price.

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