Glossary
Actual Cash Value (ACV)
The depreciated value of your vehicle at the time of a claim — what it would sell for, used.
What is actual cash value (acv)?
Actual cash value (ACV) is the depreciated market value of your vehicle at the time of a claim. It’s what your car would sell for used, accounting for age, mileage, condition, and market.
Details
ACV is what your insurer pays on a total loss. It’s often lower than what you paid for the vehicle and may be lower than what you owe on a loan or lease. The alternative is replacement cost coverage, an optional upgrade that pays to replace the vehicle with a comparable new or newer one — but it costs more.