Understand the difference between ACV and market value after an accident. Learn how insurers calculate payouts and why your real market value may be higher.
Get evidence to increase your payout
After an accident, one of the most confusing parts of the insurance process is understanding how your vehicle’s value is calculated. Many drivers assume “market value” and “Actual Cash Value (ACV)” are the same. They’re not—and this misunderstanding often leads to undervalued settlements.
Here’s the real difference, and what you need to know to protect your payout.
ACV is what your insurance company uses to determine how much your vehicle is worth at the time of the accident. It is based on:
In theory, ACV should reflect real market value. In practice, ACV is often lower due to valuation system limitations.
To calculate your real ACV, start here: https://vehiclevalueanalysis.com/find-your-cars-real-value
Market value is what your vehicle would sell for today in your local market. Unlike ACV, market value is based on:
Market value is dynamic and can change monthly, ACV systems often lag behind.
Automated insurance systems (CCC One, Mitchell, Audatex) frequently undervalue vehicles because of:
This is why many drivers are underpaid after an accident without realizing it.
To see if your insurer undervalued your vehicle, use the Professional Report (Gold): https://vehiclevalueanalysis.com/gold-report
Even though insurers rely on ACV, they must consider accurate comparable vehicles and true condition. If ACV is too low, you have the right to dispute it using market evidence.
Real market data includes:
You can get all of this in the Advanced ACV Appraisal Package (Platinum): https://vehiclevalueanalysis.com/platinum-report
They align when:
They diverge when:
If your insurer’s ACV is lower than expected, don’t assume it’s correct. Understanding the difference between ACV and market value can help you negotiate a fairer payout.
To verify your value:
