Actual cash value, or ACV, is a way in which some insurers price out most personal property claims to renters. Meaning, if your bike is stolen, most insurers will calculate the bike’s actual cash value when determining how much they’ll pay you for it
Insurers calculate ACV by:
Figuring how much it would cost to replace your stolen or damaged property with a similar item today (aka the replacement cost)
Subtracting the loss in value over time due to age, wear, and tear (depreciation)