All Montana auto policies are written for ACV. Because of the generally large availability of used vehicles, auto settlement values are determined by similar vehicles available in the market. Homeowners can endorse their policy to change their ACV to replacement cost coverage. ACV is the value of an item (including depreciation) at the time of the loss. Replacement cost equals a new item’s cost without depreciation. Replacement cost value is not paid until the item is actually replaced.
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