What Does ACV Mean in Car Insurance?

In car insurance, ACV stands for Actual Cash Value. It means the actual cash value of the vehicle, which is its replacement value minus depreciation.

The term "actual cash value" simply means that your car insurance company will pay you the amount it would cost to replace your car with a new one, less the amount of depreciation (or wear and tear) on your vehicle since you bought it.

It's hard to count the ACV, so let the insurance company do that for you. It's very important to get a fair ACV for your vehicle because it can affect your rates. The company will pay you this sum of money once you total the vehicle.

If your insurance company gives you a really low ACV, you might want to look for another insurance company. But bear in mind that every year the ACV of your car will get lower because of the depreciation. But there are some things you can do to keep your car's ACV high, like regular maintenance which will help your vehicle hold its value longer.


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