Automotive Damage Assessment Flashcards
7 cards from real CAIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Automotive Damage Assessment flashcards as text
When does an adjuster apply 'betterment' charges to a repair estimate?
Answer: When the repair restores the vehicle to a condition better than its pre-loss state
Betterment is charged when new components replace worn or deteriorated items, improving the vehicle beyond its pre-loss condition, so the insured contributes to the upgrade cost.
What is the significance of a vehicle's 'pinch-weld' location during an inspection?
Answer: It is the structural flange used for frame straightening and lifting
The pinch weld is the clamping flange used by frame straightening equipment and vehicle lifts, and damage to it can affect structural repair procedures.
A vehicle is declared a total loss. The insured still owes $18,000 on their loan, but the ACV is only $14,000. What covers the $4,000 gap?
Answer: Gap insurance, if the insured purchased it
Gap insurance covers the difference between the vehicle's ACV and the remaining loan or lease balance when the ACV is less than what is owed.
What does 'subrogation' mean in the context of an auto damage claim?
Answer: The insurer's right to recover paid claim costs from the at-fault party
Subrogation is the legal right that allows the insurer, after paying a claim, to pursue recovery of those costs from the party responsible for the loss.
Which type of damage is most commonly associated with a vehicle's 'unibody' construction after a significant collision?
Answer: Crush zone deformation that extends into the passenger compartment
Unibody vehicles use engineered crush zones designed to absorb impact energy, but in significant collisions this deformation can extend into the cabin, requiring extensive structural repair.
An insurance adjuster is asked to evaluate a vehicle for diminished value after a collision repair. What does 'inherent diminished value' refer to?
Answer: The permanent loss in market value of a vehicle simply because it has a damage history
Inherent diminished value is the residual loss in market value that persists after a vehicle is properly repaired, because buyers discount vehicles with accident histories.
A vehicle sustained water damage after flooding. Which component failure would most likely make the vehicle uneconomical to repair?
Answer: Water intrusion into the engine control module and electrical harnesses
Water damage to the ECM and wiring harnesses can require complete electrical system replacement, often pushing repair costs beyond the vehicle's ACV.