Glossary term
Actual cash value (ACV)
Actual cash value (ACV): What your car was worth just before a loss—replacement cost minus depreciation. The basis for deciding whether collision is worth keeping.
Where this term matters
Guides and entries on this site that use the term.
Guide
When Liability-Only Car Insurance Makes Sense
A practical test for choosing liability-only: car value, savings, loan status and risk tolerance—and the situations where it is a mistake.
Guide
Liability-Only vs Full Coverage
A direct comparison of liability-only and full coverage: what each pays, what each costs, and a worked example for cars of different values.
Guide
When to Drop Full Coverage and Go Liability-Only
The signals that it is time to drop collision and comprehensive: car value, premium share, deductible, savings, loan payoff, and how to make the change without a gap.
Entry
Comprehensive-Only Coverage: The Middle Option
Why keeping comprehensive while dropping collision is often the best choice for a mid-value car, what it costs, and when it applies.
Entry
The 10 Percent Rule: When to Drop Full Coverage for Liability-Only
Use the 10 percent rule to calculate whether dropping collision and comprehensive coverage for liability-only car insurance makes financial sense.
Entry
Liability-Only Car Insurance for Teen Drivers: When Does It Make Sense?
Evaluate liability-only insurance for teen drivers. Learn how crash risk affects liability limits, asset exposure, and vehicle choices for families.