If a vehicle has comprehensive insurance and is stolen, the insurance company will usually pay out the Actual Cash Value (ACV) of the vehicle. ACV is the current market value of the vehicle, which is determined by factors such as the vehicle's age, mileage, condition, and location. The insurance company may also deduct any applicable salvage value or betterment from the ACV. Betterment is an increase in the vehicle's value due to repairs or improvements made after it was purchased.
If the policyholder has gap insurance, which covers the difference between the ACV of the vehicle and the loan balance, the insurance company will also pay out the amount of the gap coverage.
