What is the main purpose of OPCF 43?

The main purpose of OPCF 43, known as the "Actual Cash Value (ACV) Waiver," is to remove the depreciation deduction on the payout for a total loss of the vehicle. This means that if the insured vehicle is deemed a total loss, the insured will receive the full replacement cost of the vehicle, as opposed to a reduced value that takes depreciation into account. This is particularly valuable for individuals who want to ensure that they receive an amount adequate to replace their vehicle at current market rates without the reduction from depreciation factors that typically affect the value of a used vehicle over time. In essence, it enhances the financial protection offered to policyholders during a loss, allowing them to replace their vehicle without suffering a financial setback due to depreciation.