What is actual cash value (ACV), and how does it affect a total loss settlement?

What is actual cash value (ACV), and how does it affect a total loss settlement?

Category: Insurance, Claims & Your Rights

Actual cash value is what your insurance company determines your vehicle was worth immediately before the accident. If repair costs exceed a percentage of ACV (which varies by insurer), your car may be declared a total loss and you receive a settlement instead of a repair. ACV calculations can undervalue your vehicle. You have the right to dispute the ACV with documentation of your vehicle’s condition, recent comparable sales, and added features or upgrades.