CAA Cheat Sheet 2026

The 30 highest-yield CAA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which source primarily reflects wholesale dealer auction transaction prices? → Manheim Market Report (MMR)
2. Which component in a modern ignition system replaced the distributor by providing a dedicated coil for each cylinder? → Coil-on-plug ignition
3. When an insurance company takes possession of a vehicle after declaring it a total loss, what is their primary objective with the vehicle? → To sell the vehicle at a salvage auction to mitigate their financial loss.
4. Which value is typically the lowest for a heavily damaged vehicle that will be declared a total loss? → Salvage value
5. In most states, a first-party diminished value claim under the insured's own collision coverage is generally: → Not covered, because the policy promises repair or ACV rather than lost market value
6. The Income Approach to valuation is rarely used for individual passenger vehicles primarily because: → Most passenger vehicles do not directly generate a measurable income stream.
7. Which item is generally NOT a valid adjustment when calculating ACV for a total loss? → The owner's original purchase price paid years earlier
8. Why is objectivity critical in writing automotive appraisal reports? → To maintain unbiased credibility
9. Inherent diminished value refers to: → Loss in market value from the vehicle's accident history even after proper repair
10. Under USPAP, an appraiser who performs an appraisal review of another appraiser's vehicle valuation is governed by: → Standard 3
11. Which type of diminished value claim is most commonly recognized against an at-fault third party's insurer? → Inherent diminished value
12. A vehicle has sustained damage from a side-impact collision, causing the frame to be shifted laterally. This type of frame damage is best described as: → Sway
13. Which item is typically NOT included in a published panel replacement labor time and must be added separately when needed? → Refinishing the replacement panel
14. The '17c formula' used by some insurers to calculate diminished value originated from a lawsuit in which state? → Georgia
15. Which of these is an acceptable basis for an appraiser's fee arrangement on a diminished value claim? → A flat fee agreed before the inspection
16. Why should an appraiser decode the VIN and compare the build data with the vehicle's actual equipment? → To confirm the trim level, engine, and factory options that affect value
17. When a comparable sold for $30,000 but lacked a $2,000 factory option the subject has, how should the appraiser adjust? → Add $2,000 to the comparable
18. Which situation most likely results in a 'constructive total loss'? → Repair costs plus storage and salvage considerations make repair economically unreasonable
19. A frame rail that has been shortened by a direct head-on collision, with wrinkles in the rail, has which type of damage? → Mash
20. Repair-related diminished value arises primarily from which factor? → Substandard or incomplete repairs such as poor paint match or improper parts
21. What does depreciation represent in vehicle valuation? → Decrease in value over time
22. What model year is represented by 'R' in the 10th position of a modern VIN? → 2024
23. Which publication is commonly used by automotive appraisers to estimate vehicle values? → Kelley Blue Book
24. Under USPAP, which standards specifically govern the development and reporting of personal property appraisals such as vehicles? → Standards 7 and 8
25. What valuation method compares the vehicle to recently sold similar vehicles? → Market Comparison Approach
26. Under typical unfair claims practices regulations, an insurer may NOT: → Require the insured to use a specific repair shop
27. Why does an estimate list separate hourly rates for body, refinish, frame, and mechanical labor? → Because each type of work can be billed at a different rate
28. An appraiser values a vehicle as if a pending engine rebuild were already complete. This is an example of what? → Hypothetical condition
29. A passenger car VIN has 'A' in position 10. How can you tell if it is a 1980 or a 2010 model? → Check position 7: a number indicates 1980-2009, a letter indicates 2010-2039
30. Which factor most directly influences automotive market trends? → Consumer demand