Why your vehicle is worth less than you paid
A plain-language walkthrough of how depreciation shows up in everyday valuation conversations.
What depreciation actually measures
Depreciation is the gap between what a vehicle once cost and what a comparable example sells for today. It reflects age, mileage, condition, and broader market trends rather than any single number on a window sticker.
How the curve typically behaves
Most vehicles experience their steepest drop in the earliest years of ownership. After that, the curve usually flattens — but specific make and model histories vary widely. Comparable listings remain the most common reference point.
What this means when you read a policy
Auto policies frequently settle a covered total loss at actual cash value. Knowing roughly where your vehicle sits on its depreciation curve helps you read and interpret that settlement language in your own existing policy.
