What is a Betterment?

Insurance companies rates are usually based on losses and the Insurance Company will not allow the insured to profit or "better" from the loss.

The betterment can reduce the amount of the insurance payment toward your claim. If your older vehicle is repaired with brand-new parts, your insurer may argue that the repairs have actually enhanced the car’s value and therefore they can legitimately reduce your claim by the difference between a used part and a new one. The insurance company will usually determine the appropriate replacement value and the owner’s contribution towards the 'betterment' will make up the difference in the replacement cost.

If you have additional betterment questions, contact your insurance agent and they will be happy to explain this further.