1. What is Actual Cash Value (ACV)?

Actual Cash Value (ACV) represents the fair market value of your vehicle immediately before it was totaled. It's typically based on the Kelley Blue Book (KBB) or NADA value, adjusted for factors like mileage, condition, and local market prices.

2. How the Calculator Works

The calculator uses the following formula:

Where:

• Base Value — KBB or NADA base value for your vehicle
• Mileage Adjustment — Adjustment for high or low mileage
• Condition Adjustment — Adjustment for vehicle condition
• Local Market Adjustment — Regional price variations

3. Importance of ACV Calculation

Details: ACV determines how much insurance companies will pay for a totaled vehicle. Accurate calculation helps ensure fair compensation.

4. Using the Calculator

Tips: Enter the KBB/NADA base value and any applicable adjustments. Positive values increase ACV, negative values decrease it.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between ACV and replacement cost?
A: ACV accounts for depreciation, while replacement cost covers what it would take to buy a similar vehicle today.

Q2: How do insurance companies determine ACV?
A: They use proprietary software that analyzes comparable sales, condition, mileage, and local market data.

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

Q4: What if I disagree with the insurance company's ACV?
A: You can request their valuation report, hire an independent appraiser, or file a complaint with your state insurance department.

Q5: Does ACV include sales tax?
A: Typically no, but some policies may include tax in the settlement. Check your policy details.