Legal Definitions - actual value

Actual value refers to the real worth of something. It can be the monetary value of something or its significance, desirability, or usefulness. It is also known as fair market value.

• If you want to sell your car, the actual value is the amount of money someone is willing to pay for it in an open and fair market.
• In insurance, the actual value is the replacement cost of an item minus its normal depreciation.
• When determining the value of a property, the actual value is the price that a buyer is willing to pay and a seller is willing to accept in an arm's-length transaction.

These examples illustrate that actual value is the true worth of something in a given context, whether it is the price of a car, the replacement cost of an insured item, or the market value of a property.