PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How is actual cash value calculated?
I recently totaled my car, and I was worried about getting a new car until I realized I had actual cash value coverage through my insurance. How does my insurance company determine the actual cash value of my car?
Macy Fouse · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
We’re so sorry to hear about your accident, but we’re glad you had ACV coverage! It may sound complicated, but it’s actually pretty straightforward: the
actual cash value
is the outright price the car could sell for in its current condition. Companies calculate the actual cash value by determining how much replacing a certain part or vehicle would cost today when taking depreciation into account.
To determine the current cost of an object (including depreciation), insurers calculate the part or car’s approximate lifetime, then decide what percentage of its lifetime is left. Your insurance company will determine how much it would cost to replace your car at its current state and age—factoring in the depreciation—then arrive at the actual cash value. This is not the cost of buying a
new replacement
.Having great
car insurance
coverage is never more important than when you’re in an accident. Make sure you’re covered in any event by using the Jerry
app. Not only does Jerry make it super easy to find affordable coverage, but Jerry will even sign you up for a new policy—potentially saving you hundreds per year on premiums. View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies