In more understandable terms, what could you have sold your vehicle for the day of the accident, had it not been wrecked? That is the actual cash value. The insurance companies coined this phrase and have greatly twisted its intent.
After a car wreck, the insurance company will order an appraisal be done on your vehicle by a third party company. This company is usualy CCC or ADP. These companies are experts in creating appraisals with a goal to prove that your vehicle is worth as little as possible. Using this appraisal, the insurance company has the proof they need to pay you less then the true 'actual cash value' of your vehicle.
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