What is Actual Cash Value in insurance?

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In insurance terms, what does what you say actually mean? What if you buy a car for $24, 000 and 2 years later it’s considered a total loss and cars of your same condition, mileage, year, trim, etc. are roughly $22-24, 000. Is the actual cash value still half, $12K, like your example or is the ACV closer to the $23K range?