According to policy condition, insurer will pay you the Actual Cash Value of the automobile or its parts, but in no event shall the payment exceed the actual cost to be incurred to repair or rebuild it. That's why there's always a depreciation.
However, ACV is not the same as Market value, which will be materilsed only when you try to sell it , although in some case market value may be used to determine ACV. Aslo, It's noy unusual for us to see a customised car, which, may worth only $1000 itself in ACV, but has a high-profile stereo of $4000 installed inside. Are you expecting the insurer to pay you $5000, becasue of this? That's not right.
However, ACV is not the same as Market value, which will be materilsed only when you try to sell it , although in some case market value may be used to determine ACV. Aslo, It's noy unusual for us to see a customised car, which, may worth only $1000 itself in ACV, but has a high-profile stereo of $4000 installed inside. Are you expecting the insurer to pay you $5000, becasue of this? That's not right.