Our insured's customized van 2013 Dodge Caravan was totaled in an automobile accident on 8/30/19. CCC Valuation came in at $37,237.09. The insured has coverage for the customizing equipment. However, he only paid $28,000 for this van two years ago. Would we owe on the ACV CCC total of $37,237.09 or would be owe for what he paid for the van back two years ago. There is a $9,000 increase. Thank you for your prompt response. 

New York Subscriber

The standard ISO policy states that the amount paid will be the lesser of the actual cash value or the amount necessary to repair or replace the vehicle with like kind and quality. While the principle of indemnity is to restore the person to whole, and they are not to profit from their loss, the policy does not address the insured having gotten a good deal on his purchase. While it's unlikely the vehicle appreciated that much in two years, it is possible the insured got a good deal. You can cross check CCC against the NADA guides or a blue book, but if the CCC valuation shows comparables in the area at that price, then that is what should be paid. It may be that these vehicles are more expensive now in that area for whatever reason.