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General

Actual Cash Value (ACV)

Actual cash value is the current market value of a damaged item after accounting for age and wear. It pays less than replacement cost because depreciation is subtracted from the claim payout.

Pays the current market value of the item, factoring in age and wear. Lower payouts than replacement cost. Example: a totaled twelve-year-old sedan with 140,000 miles might have ACV around $4,500 even though replacing it costs $14,000 at a dealer. The dealer markup is not your insurer's problem.