What is Fair market value (FMV)?

Fair market value is what a car would sell for between a willing buyer and a willing seller in the local market, based on what comparable vehicles actually sell for.

In total-loss disputes it's often used interchangeably with actual cash value; the evidence for both is the same set of comparable vehicles.

Actual cash value

See how the referral program works The one-pager, the referral line, the AI assistant and the Appraisal Clause, set up for you.

More terms

Total loss Actual cash value (ACV)Appraisal Clause Umpire (appraisal)Total Loss Formula Total loss threshold Salvage value Diminished value Comparable vehicle (comp)Loss of use Property-damage-only claim Referral agreement (between law firms)Demand letter

Updated 2026-11-01. General information, not legal advice; policy wording and state rules vary. TRUEclaims is not a law firm.