What does the term betterment charge mean?
A betterment charge is a cost to you for replacing a worn part with a new part. Typically, such parts as tires, batteries and suspension parts are subject to betterment charges, For example, if you were in an accident after you had driven 10,000 miles and had to replace one tire; in theory the insurance company could provide a replacement tire with 10,000 miles of wear. Typically a new tire is purchased and the insurance company pro-rates the betterment charge based on the projected tire life. If a new tire cost $270.00 and has an expected life of 30,000 miles, the betterment charge could be $270* 1/3 or $90.00.
