2026 NYS Auto Damage and Theft Adjuster Exam Practice Test

Salvage value comes from what the market is willing to pay for a damaged vehicle in its salvageable condition. It is determined through real market channels—salvage auctions, salvage dealers, or an estimated resale value—and it reflects how the vehicle’s current condition and demand for its salvageable parts influence price. This is why it isn’t tied to the original MSRP, which was the price of a new vehicle long ago, nor to the seller’s asking price, which may not match market reality. It also isn’t based solely on the repair estimate, since the value is about what buyers will actually pay in the salvage market, given condition and demand.