Fair Market Value
Fair Market Value (FMV) is the price a willing buyer would pay a willing seller for a vehicle in an open market, with both parties acting without compulsion and with reasonable knowledge of relevant facts. For total-loss claims, FMV is functionally identical to Actual Cash Value (ACV).
Related terms
Actual Cash Value (ACV)
Actual Cash Value is the dollar amount your insurance company is required to pay you for a totaled vehicle. ACV represents the price you would pay to buy a comparable used vehicle of the same make, model, year, mileage, and condition in your local market — not the vehicle's original price, replacement cost, or what you still owe on a loan.
Comparable Sales (Comps)
Comparable Sales — or 'comps' — are recent sale prices of similar vehicles used to determine the fair market value of your totaled car. Insurance valuation tools build their offer by averaging adjusted prices of comps from your local market.
Need help with a real total-loss claim?
SecondAppraisal handles the research and negotiation for you. Our fee never exceeds the increase we secure.
Start Free Consultation