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actual cash value
noun
: money equal to the cost of replacing lost, stolen, or damaged property after depreciation
Examples of actual cash value in a Sentence
Recent Examples on the Web
The company sees that actual cash value coverage is becoming more commonplace, especially for roofs that are more than 10 years old.
—Jennifer Castenson, Forbes, 16 Feb. 2024
The actual cash value is the amount your car is worth, taking into consideration its age, condition, and mileage.
—Steven Glass, Car and Driver, 9 June 2023
That is instead of actual cash value, which subtracts depreciation and is common with home and auto insurance.
—Ben Luthi, wsj.com, 22 Nov. 2023
With actual cash value, your insurance company won’t fully reimburse you for a new item at prevailing prices.
—Russ Wiles, The Arizona Republic, 10 Sep. 2023
In general, car GAP insurance helps any driver who is upside down on an auto loan or anyone who owes more than a vehicle's actual cash value.
—Idalia Garcia, Car and Driver, 6 July 2023
Replacement cost pays for the full amount needed to replace an item, whereas actual cash value insurance estimates depreciation, or the loss of value over time, and pays only the difference.
—Swapna Venugopal Ramaswamy, USA TODAY, 28 Mar. 2023
With actual cash value coverage, depreciation is factored into the value of your boat if it’s damaged, destroyed or stolen.
—Ashley Kilroy, Robb Report, 5 Nov. 2021
Be sure the policy covers the replacement value, not the actual cash value.
—Tara Siegel Bernard, New York Times, 14 June 2023
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'actual cash value.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
Word History
First Known Use
1922, in the meaning defined above
Time Traveler
The first known use of actual cash value was
in 1922
Dictionary Entries Near actual cash value
Cite this Entry
“Actual cash value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/actual%20cash%20value. Accessed 10 Jun. 2024.
Legal Definition
actual cash value
noun1
: the cost of replacing or repairing damaged property less any applicable depreciation
More from Merriam-Webster on actual cash value
Britannica.com: Encyclopedia article about actual cash value
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