1. What is Actual Cash Value (ACV)?

Actual Cash Value (ACV) is the market value of your vehicle minus any deductible. It's the amount an insurance company would pay you if your car is declared a total loss.

2. How Does the Calculator Work?

The calculator uses the ACV formula:

Where:

• \( Market Value \) — Current value of your vehicle before the loss
• \( Deductible \) — Amount you're responsible for under your insurance policy

Explanation: The equation calculates what you would actually receive from your insurance company after accounting for your policy deductible.

3. Importance of ACV Calculation

Details: Understanding your vehicle's ACV helps you evaluate insurance settlements and determine if you're being offered fair compensation for a total loss.

4. Using the Calculator

Tips: Enter your vehicle's current market value and your insurance deductible in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is market value determined?
A: Insurance companies typically use valuation tools that compare your vehicle to similar recently sold vehicles in your area.

Q2: What if my ACV is less than what I owe?
A: This is called being "upside down" on your loan. Gap insurance can help cover the difference.

Q3: Can I negotiate the ACV with my insurer?
A: Yes, you can provide evidence (like recent upgrades or maintenance records) to support a higher valuation.

Q4: Does ACV include sales tax?
A: Most states require insurers to include sales tax in the total loss payment, but this varies by location.

Q5: How often should I check my vehicle's value?
A: It's good practice to check annually when renewing your insurance policy to ensure you have adequate coverage.