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Auto Insurance Definitions: Actual Cash Value
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In my car insurance policy, what is defined as the Actual Cash Value?
Auto Insurance Definitions: Actual Cash Value
In your policy, the car insurance term, "Actual Cash Value", is the current value of an item at the time of the loss. This value is defined as the cost of replacing the item minus any applicable depreciation.
Your auto insurance actual cash value is the reimbursement value of the loss. For example, if your car is considered a total loss after an automobile accident, the insurance company will reimburse you the cash value of the car at the time of the accident, not what you paid for the vehicle when it was new.
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