1. What is Actual Cash Value (ACV)?

Actual Cash Value (ACV) is the market value of your vehicle minus any depreciation or wear and tear. It represents what your vehicle is worth at the time of loss or damage, not what you originally paid for it.

2. How Does the Calculator Work?

The calculator uses the ACV formula:

Where:

• Market Value — Current value of your vehicle in its pre-loss condition
• Wear and Tear — Depreciation based on age, mileage, and condition

Explanation: The calculation accounts for the vehicle's current condition compared to a similar new vehicle.

3. Importance of ACV Calculation

Details: ACV is crucial for insurance claims, determining fair compensation for totaled vehicles, and understanding your vehicle's current worth.

4. Using the Calculator

Tips: Enter the current market value of your vehicle and estimated wear and tear amount. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is market value determined?
A: Market value is typically based on comparable sales of similar vehicles in your area, considering make, model, year, and condition.

Q2: What factors affect wear and tear?
A: Mileage, age, mechanical condition, interior/exterior condition, and maintenance history all contribute to wear and tear.

Q3: How does ACV differ from replacement cost?
A: ACV accounts for depreciation, while replacement cost would cover buying a similar new vehicle without depreciation.

Q4: Can I negotiate the ACV with my insurance?
A: Yes, you can provide evidence (like recent appraisals or comparable listings) to support a higher ACV if you disagree with the insurer's assessment.

Q5: Does ACV include taxes and fees?
A: Typically no, ACV represents just the vehicle's value. Some policies may offer additional coverage for taxes and fees.