Actual Cash Value
/ˈæk.tʃu.əl kæʃ ˈvæl.juː/
Definitions
- (n.) The value of insured property at the time of loss, calculated as replacement cost minus depreciation.
The insurance company paid the actual cash value of the damaged car after considering its age and wear.
Forms
- actual cash value
Related terms
See also
Commentary
Actual cash value reflects depreciation, differing from replacement cost which covers full repair or replacement expenses without deduction for wear.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.