Actual cash value is the figure an insurer uses to settle a claim. It is the vehicle's market value the moment before the loss, reflecting age, mileage, condition and local market rather than what was paid for it or what it would cost to replace new.
ACV is the denominator in most total loss calculations, which is why two identical accidents can produce different outcomes on two different vehicles.
Owners frequently dispute ACV, because the insurer's valuation and the owner's sense of what the vehicle was worth often diverge, particularly on well-maintained older vehicles.
Why it matters
Understanding ACV explains why a minor-looking accident produced a salvage title, which in turn tells you how much damage to expect.
How to check it
Compare the settlement figure, where a report shows one, against the typical market value for that year and model.
Does this apply to the car you are looking at?
Run the VIN or plate and see what is actually on record.
Related terms
Definitions are general guidance, not legal advice. Title rules, total loss thresholds and inspection requirements are set by each state and change over time, so confirm the position with the motor vehicle agency for the state the vehicle is titled in before relying on it.