EV insurance glossary
Actual cash value (ACV)
A vehicle's value immediately before a covered loss, determined under the policy and local rules.
Actual cash value, often shortened to ACV, is a term commonly used in U.S. auto policies for the vehicle’s value immediately before a covered loss. An insurer’s valuation may account for factors such as age, condition, mileage and comparable vehicles. The calculation method and the right to challenge it depend on the policy and applicable law.
ACV is not automatically the amount you paid for the car, the cost of a new replacement vehicle or the balance left on a loan. Read the valuation and settlement wording that applies in your market.