Actual Cash Value (ACV) covers your property based on the current cost to repair or replace it minus depreciation. You can calculate Actual Cash Value by subtracting depreciation from the original price of your car. Here is an example:
If you paid $20,000 for your car 3 years ago, and it has depreciated $5,000 due to normal wear and tear, then your car's actual cash value is $15,000.
Replacement Cost Value (RCV) is a bit different. It covers your property based on the current cost to repair or replace it without factoring in depreciation.