Calculating the vehicle price involves determining the vehicle's current market value, also known as its actual cash value (ACV). This can be done by using several methods, including:
Online Valuation Tools: These tools use data from various sources, such as vehicle history reports, to determine the vehicle's value.
Dealer Quotes: Obtain quotes from local dealerships for the same make and model of the vehicle, taking into account the vehicle's condition, mileage, and any additional features.
Once the vehicle's ACV has been determined, the insurance company can use this value to determine the appropriate premium for the policyholder.