Whether you have a car, a motorcycle, or an RV(Recreational vehicle), all these modes of transportation need Auto Insurance most of the time almost in all states. In order to protect your vehicle with an insurance policy, it is required to know what the term actual cash value (ACV) means.
Actual cash value (ACV) plays a significant role in the Insurance Industry. Actual cash value is used by all insurance companies to assure policyholders receive reasonable compensation for damaged or destroyed property.
But how do insurance companies decide on the value of your vehicle […]
Actual cash value means replacement cost less depreciation. An insurance company determines the worth of the car after accounting for the depreciation and what we get is Actual Cash Value (ACV). This is the amount of money your insurance company will pay out if it is stolen or totalled after they’ve subtracted your deductible, which is required with a comprehensive or collision claim. It means the value of your car as determined by your car insurance company considering the market value of the vehicle. Actual cash value is different from replacement cost coverage, which covers the full […]