How Does Actual Cash Value (ACV) Affect My Car Insurance Policy?
car insurance policy, and how not understanding ACV can have some pretty expensive consequences. What is ACV? ACV stands for Actual Cash Value. As previously stated, ACV is what an insurance company will pay you for your vehicle in the event of a total loss. It is the fair market value of your vehicle immediately prior to the car accident. ACV is based on the car insurance company’s method of calculation, which takes into consideration various indexed values of your vehicle. Chances are you will receive the Kelley Blue Book or NADA value of your vehicle if it is totaled. How does ACV Affect my Car Loan? If you borrowed money to purchase your car, you are not alone. However, you need to realize how ACV can affect your car insurance policy. If the actual cash value of your car is less than your loan, you will be liable to the car loan company for the extra amount. There are certain ways you can cover your exposure to this potentially troubling ACV car insurance issue. You can purchase GA
