In the Arizona Administrative code, R20-6-801, the AZ Department of Insurance specifies that an insurer can use the following methods to determine the actual cash value of a vehicle:



Standards for prompt, fair and equitable settlements applicable

to automobile insurance

1. When the insurance policy provides for the adjustment

and settlement of first party automobile total losses on the

basis of actual cash value or replacement with another of

like kind and quality, one of the following methods must

apply:

a. The insurer may elect to offer a replacement automobile

which is a specific comparable automobile

available to the insured, with all applicable taxes,

license fees and other fees incident to transfer of evidence

of ownership of the automobile paid, at no

cost other than any deductible provided in the policy.

The offer and any rejection thereof must be documented

in the claim file.

b. The insurer may elect a cash settlement based upon

the actual cost, less any deductible provided in the

policy, to purchase a comparable automobile including

all applicable taxes, license fees and other fees

incident to transfer of evidence of ownership of a

comparable automobile. Such cost may be determined

by:

i. The cost of a comparable automobile in the

local market area when a comparable automobile

is available in the local market area.

ii. One of two or more quotations obtained by the

insurer from two or more qualified dealers

located within the local market area when a

comparable automobile is not available in the local market area