March 17, 2016


Betterment is a terms used when your car is replaced new parts that makes your car in a better position before it was damaged.  The purpose of insurance is to indemnify your loss, and no profit should be obtainable, thus, if your damaged car is replaced with better part, you may be subjected to ‘Betterment” charges and have to bear the difference in cost (depending on the age of your vehicle) as your repaired vehicle is in a better condition than it was before the accident.

Betterment Rate – 0% for vehicle age less then 5 years
Betterment Rate – 15% for vehicle age 5 years
Betterment Rate – 20% for vehicle age 6 years
Betterment Rate – 25% for vehicle age 7 years
Betterment Rate – 30% for vehicle age 8 years
Betterment Rate – 35% for vehicle age 9 years
Betterment Rate – 40% for vehicle age 10 years and above

Whether your insurance company opt to apply Betterment will be at their discretion and will not be more then the above rate stipulated.