Every insurance company has their own internal rules that are used to determine actual cash value (ACV). Determining the ACV is subjective and we know of no standard table that is used. Determining ACV takes into account the effect of depreciation due to wear, condition and age.
Most insurance company claims departments use a computerized evaluation process to assist them in determining the value of your vehicle. Insurance companies purchase third party computer systems (like CCC) that help them estimate costs in automotive claims and collision repairs. Third party software supplies insurers with software and a database that helps determine the value of a vehicle based upon automating the claims process. These systems have databases and systems that contain benchmarking tools to find the true value of a vehicle from repair shops and dealers.
"Actual Cash Value" is the cost to replace an item of property at the time of loss, less an allowance for depreciation. Remember that a deductible may apply.
Please refer to your insurance policy for specific information.
Comment Update: You can use some of these resources to help determine the value of your vehicle (visit their used car sections):
- Edmunds.com - www.edmunds.com
- Kelly Blue Book - www.kbb.com
- NADA guide book - ww.nadaguides.com
Comment Update: The basic criteria is listed above. Typically, the trade in value at one of the sites listed above will give you a good starting point. Each company uses different databases. After an amount is determined you can ask how the company arrived at that amount.