What are Betterment Charges?

Betterment Charges
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What are Betterment Charges?

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Parts that wear out and need replacement with time and use (i.e., tires, batteries, and suspension parts) are commonly subject to betterment charges when they are replaced during the repair process. These betterment charges are determined by your insurance company and are pro-rated based on actual miles on your vehicle.

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Parts wear out and need replacement with time and use. Tires, batteries, upholstery and suspension parts are commonly subject to betterment charges when they are replaced during the repair process. These betterment charges are determined by the insurance company and are pro-rated based on the year, condition and mileage, of your vehicle.

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A. Parts that wear out and need replacement with time and use (i.e., tires, batteries, and suspension parts) are commonly subject to betterment charges when they are replaced during the repair process. (Example: If your tire has 50% of the tread remaining, you would owe for the 50% of the tire that has been used) These betterment charges are determined by your insurance company and are pro-rated based on actual miles and age of your vehicle.

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Some items such as batteries, tires, paint, upholstery, convertible tops, vinyl tops, and some mechanical parts are inspected to establish what their age and condition were prior to the accident. If these items are replaced due to accident damage, you may be asked to pay a percentage of the repair costs based on the item’s original state of age and wear. These are referred to as betterment charges and are determined by your insurance company. Ask your estimator for further details.

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A betterment is applied only by the responsible insurance company. It is normally allocated to wearable parts, such as tires, batteries, moving suspension parts, exhaust systems and transmissions. What the insurance company is saying is, yes, your battery was damaged during the accident, and yes they owe you a replacement battery, but the battery that was damaged was 2 years old. They may pay 70% of the replacement cost, and ask that you pay for the remaining 30%. They only owe to replace what was damaged. What was damaged was a battery with 30% wear. In extreme cases, betterment is also applied to exterior paint.