1. What is Insurance Value (ACV)?

The Actual Cash Value (ACV) or Insurance Value represents the current market value of your vehicle at the time of loss, accounting for depreciation. It's what insurance companies typically pay when your car is totaled.

2. How Does the Calculator Work?

The calculator uses the standard insurance value formula:

Where:

• Replacement Cost — The current cost to replace your vehicle with a similar one
• Depreciation — The decrease in value due to age, mileage, and condition

Explanation: This calculation determines the fair market value of your vehicle before it was totaled.

3. Importance of ACV Calculation

Details: Accurate ACV calculation is crucial for ensuring fair compensation when your vehicle is declared a total loss by your insurance company.

4. Using the Calculator

Tips: Enter the current replacement cost of your vehicle and the estimated depreciation amount. Both values must be positive numbers, and depreciation cannot exceed replacement cost.

5. Frequently Asked Questions (FAQ)

Q1: How is replacement cost determined?
A: Replacement cost is typically based on the current market price for a similar make, model, year, and condition vehicle in your area.

Q2: What factors affect depreciation?
A: Mileage, age, condition, maintenance history, accident history, and market demand all impact depreciation.

Q3: Why might my insurance payout be less than I expect?
A: Insurance payouts are based on ACV, not what you originally paid or what a new car would cost. Depreciation can significantly reduce value.

Q4: Can I dispute the insurance company's ACV offer?
A: Yes, you can provide evidence (comparable vehicle listings, recent upgrades) to support a higher valuation.

Q5: Does gap insurance affect this calculation?
A: Gap insurance covers the difference between ACV and your loan balance, but doesn't change the ACV calculation itself.