CAADE Study Guide 2026
Everything you need to pass the CAADE exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CAADE Exam Format at a Glance
📚 CAADE Topics to Study (21)
✍️ Sample CAADE Questions & Answers
1. When estimating repairs to a vehicle with a damaged seat belt pretensioner, why must a new pretensioner be included regardless of visible damage?
Seat belt pretensioners are pyrotechnic single-use devices that fire during a collision and cannot be reused or reset once triggered.
2. What does 'betterment' mean in the context of an insurance appraisal report?
Betterment is a cost reduction applied when new parts replace components that were worn or deteriorated, reflecting the improved condition relative to pre-loss.
3. In the context of a collision repair estimate, what does the acronym "LKQ" stand for?
LKQ stands for "Like Kind and Quality." It is a standard industry term for a used, recycled, or salvaged part sourced from another vehicle. The part is expected to be of a similar type and in a similar or better condition than the part it is replacing was in before the accident.
4. If a vehicle owner chooses to retain their vehicle after it has been declared a total loss (owner-retained salvage), how does this typically affect the insurance settlement payout?
When an owner elects to keep their totaled vehicle, the insurance company deducts the salvage value from the total loss settlement amount. This is because the insurer would have otherwise recovered that amount by selling the salvage. The owner receives the ACV minus their deductible and minus the salvage value.
5. What does the term 'line item' refer to in a damage estimate report?
A line item in a damage estimate represents a single, specific repair or replacement operation with its associated time and cost clearly stated.
6. What should an appraiser do if they are presented with an unethical request from a client?
If an appraiser is presented with an unethical request, they should decline to perform the appraisal or report the request to relevant authorities, ensuring they remain compliant with ethical standards.