Definition: Actual Cash Value is what a motorcycle is worth at the time of loss. Insurance companies typically determine ACV of a motorcycle using N.A.D.A Appraisal Guides or Kelly Blue Book and the old fashioned way of shopping for a like, kind, and quality vehicle in your area.
Alternate Spellings: ACV
Examples:
If a 1997 Harley Davidson Sportster is stolen and has comprehensive coverage, the insurance company will settle the claim by paying out the ACV of the vehicle. The claim representative will research what comparable motorcycles are going for in the area and compare the price to N.A.D.A. Appraisal Guides. The insurance company will also take into consideration custom parts and accessories depending on the coverage listed on your motorcycle policy. The insurance company takes this information and calculates the value of the vehicle at the time of loss.
