Simply Explaining Insurance #107- Betterment

What is betterment when it comes to an auto insurance claim? If you are in an accident in your car and you file a claim to get it fixed, there is a chance that you will end up paying more than your deductible.

Insurance by nature isn’t to better your current situation. It is to get you back to where you were. Auto insurance policies are actual cash value policies. When it is being repaired at the shop, the parts you get put on of like kind and value. Some of the parts that get put on have to be new.

Tires are the most common thing that is subject to betterment. If your tires are 50% worn before an accident, you are going to have new tires put on if they are damaged in an accident. These new tires are putting your car in a better position than before the accident. There will be a betterment charge for this.

Other things that are subject to this are parts like, mufflers, batteries, and belts. Again, insurance isn’t to better your situation and if the vehicle is repaired and in better shape than before, you may run into a betterment charge.