Car insurance glossary
What is actual cash value?
Actual cash value is an estimate of property's value immediately before a covered loss, accounting for factors such as age, condition, mileage, and local market data.
Also called: ACV
Glossary date: May 4, 2026
How it works
Auto policies often use actual cash value to set the most payable for a stolen or totaled vehicle, subject to the contract and deductible.
Example
A car bought years ago for $28,000 has a current pre-loss value of $15,500. A total-loss settlement is based on the current value, not the original price.
Why it matters
A loan balance can be higher than the vehicle's actual cash value.
What to check on your policy
Review the valuation report for the vehicle description, options, mileage, condition adjustments, comparable cars, taxes, and deductible.
Related car insurance terms
Put the terms into context
Read the full guide, find a nearby GoAuto office, or start a quote with the coverage details you want to discuss.