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 See More

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 1 Mar. 2024.

Legal Definition

actual cash value

noun
1
: the cost of replacing or repairing damaged property less any applicable depreciation
2

More from Merriam-Webster on actual cash value

Last Updated: - Updated example sentences
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