What is the ‘Actual Cash Value’ of a Vehicle?

What is the ‘Actual Cash Value’ of a Vehicle?


What is the actual cash value of a vehicle if you have been involved in a
car accident you may receive compensation for the damage that has
been done to your car along with compensation that covers the cost of
other items that were damaged – however you will only receive an amount of money
up to the value of your vehicle and the property that was damaged in other words
you will only receive the actual cash value what is the actual cash value of a
vehicle the actual cash value is the market value of your vehicle and the
value is ultimately measured by how much money you would have received for the
vehicle should it have been sold at the time of time accident you should be
aware that the market value is usually a lot less than the cost of replacing the
vehicle or purchasing a new and identical one if your car has been so
badly damaged that it would cost more to repair it than the car is actually worth
the car will be totaled in cases such as this the insurance company will only
give you a monetary figure that represents the actual cash value of your
vehicle rather than the cost of repairs it can be hard to work out how much
damage is worth and it usually involves looking at the cost of similar vehicles
in your local area other costs that can be reimbursed an insurance company may
also pay for the cost of a temporary replacement vehicle such as a rental car
the insurance company may also pay got any properties such as business
equipment that has been damaged until yours has been replaced or repaired you
may also receive payment for storage and towing costs but this may be limited by
your policy the collision deductible if you wish to make a claim under your
collision coverage section of your motor insurance policy you should be aware
that any money you receive will be taken from your compensation for example if
you are awarded ten thousand dollars of collision coverage and you are also
awarded thirty thousand dollars from the insurance company the $10,000 will be
subtracted this means you will only receive twenty thousand dollars from the
insurance company the good news is that if you make a
property damage claim against the other driver as part of a third party claim
there will be no deductions if you have been injured in a car accident or your
vehicle sustained a lot of damages please speak to a personal injury lawyer
as soon as you can [Music]

About the Author: Michael Flood

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