If you were leasing your totaled vehicle, your insurance provider sends your lender a payout equal to the car's ACV, minus the deductible. This goes toward the remaining balance on the lease. If the ACV is higher than the amount you owe, your insurer pays you the difference. If it's ...
For instance, a $500 deductible on collision means that the first $500 worth of damage to your vehicle is your responsibility if you are at fault in an accident. The rest of the damage is typically covered by your insurance company (up to the ACV of your vehicle). It’s standard ...
Each year, almost 40 million cars are sold. If you are trying to sell your car, some of the main factors that affect the price include mileage, exterior and interior conditions, location and the make, model and year. Insurance companies may use actual ca
In some cases, the amount you still owe in car payments can exceed your car’s ACV. This is known as having negative equity or being upside down on your loan. Gap insurance, also sometimes called loan/lease payoff insurance, helps you pay off the loan in this situation. Remember, the ...
The premium is the amount you pay every month for your health insurance plan. The premium amount depends on the plan you choose. Often, the premium price affects the price of the other features. For example, high coinsurance and high maximum out-of-pocket usually means a lower monthly premiu...
When your car is totaled or stolen, your comprehensive or collision coverage will only pay for the car's current value, which may be less than what's left on your lease or loan. Gap insurance pays for the remaining balance on your loan that comprehensive or collision coverage doesn't ...
Gap insurance does not cover repairs on your vehicle, a down payment on a new vehicle, rental car fees while your vehicle is in the shop, and any interest, fees, or penalties accrued from your specific situation. Keep in mind, to qualify for gap insurance, you often will need specific ...
As you explore different types of auto insurance coverage, you may come across some words and phrases you’re not familiar with. We’ve defined the most common ones below. Actual cash value: Otherwise known as ACV, this is the value of a car, taking into account its mileage, model, make...
Actual cash value (ACV) is how an insurance company measures a property's worth at a given moment in time. It accounts for depreciation.1You may come across the term if you make acar insurance claim, or a claim on your homeowner's policy. ...
(ACV). Depreciation is an accounting concept that spreads the value of an item over its expected useful lifetime. Insurance companies use a similar concept, but they approach the calculation differently from accountants. Insurance companies calculate depreciation based on the property’s condition when...