Repairing Your Vehicle

The amount an insurance company will pay on an auto physical damage or a theft claim depends on the "actual cash value" of the vehicle. The actual cash value of the vehicle is the replacement cost less depreciation, which most often, is the current market value at the time of loss.

The insurance company may pay the business owner the actual cash value of the loss in money or, at its option, it may (1) repair or replace the damaged or stolen vehicle or (2) return a stolen vehicle to the business owner with payment for any damage caused by the theft.