This BS Auto Insurance Clause- "Betterment"

  • Posted by a hidden member.
    Log in to view his profile

    Mar 24, 2016 10:00 PM GMT
    Does anyone have experience with their own auto insurance "betterment" claim?

    This is complete, utter bullshit.. I haven't had to use my auto insurance in years and now that its 'time to collect', I am running into this insurance, "betterment" condition, my insurance company wants me to pay more than my deductible!

    I think I am going to take the responsible party to small claims court to avoid the, nit picky insurance industry rip off icon_twisted.gificon_confused.gif
    So the insurance company wants to profit from your loss, and makes sure you do not, how fucking evil icon_twisted.gif


    Betterment:

    A provision, often found in the physical damage section of automobile insurance policies, which stipulates that if the repair or replacement of the damaged parts results in better than "like kind or quality," the insurers will not pay for this net improvement. This clause is designed to preserve the concept of indemnity so the insured does not profit from the loss (while the extra money you pay them becomes their profit) when the circumstances are such that it is impossible for the insurer to repair or replace the property without bettering the insured's position.

    What Is This “Betterment Charge” That An Insurance Company Wants Me to Pay?
    http://www.seedebtrun.com/2013/09/what-is-this-betterment-charge-that-an-insurance-company-wants-me-to-pay.html/

    A betterment charge is a tool that insurance companies use to avoid paying for the complete amount of repairs after a car accident. Basically, if a repair is needed to a “wear and tear” part of your vehicle, the insurance company will only pay a percentage of the cost of that replacement part. From their point of view, they are only responsible for returning your vehicle to the condition that it was in prior to the accident, and since you are getting a brand-new part, your vehicle will actually be in better condition after the repairs are completed. Therefore, the insurance company shouldn’t be on the hook for the entire amount. This charge is most often applied to tires, but can also be applied to parts of the exhaust.
  • Posted by a hidden member.
    Log in to view his profile

    Mar 24, 2016 10:12 PM GMT

    So does this mean, if your tires (used 20k miles of 50k miles) are slashed by a juvenile delinquent while your car is parked, your deductible is $1,000 but your tire replacement costs is $1,600, you end up paying the entire cost of your tire(s) replacement because of their 'betterment' clause? (the 20k miles used up on the tires is the $600 more than your deductible)

    WTF? icon_eek.gif


    So now the auto insurance industry is allowed to replace your used tires with other used tires icon_eek.gif

  • Suetonius

    Posts: 1842

    Mar 28, 2016 6:39 PM GMT
    ELNathB saidDoes anyone have experience with their own auto insurance "betterment" claim?

    This is complete, utter bullshit.. I haven't had to use my auto insurance in years and now that its 'time to collect', I am running into this insurance, "betterment" condition, my insurance company wants me to pay more than my deductible!

    I think I am going to take the responsible party to small claims court to avoid the, nit picky insurance industry rip off icon_twisted.gificon_confused.gif
    So the insurance company wants to profit from your loss, and makes sure you do not, how fucking evil icon_twisted.gif


    Betterment:

    A provision, often found in the physical damage section of automobile insurance policies, which stipulates that if the repair or replacement of the damaged parts results in better than "like kind or quality," the insurers will not pay for this net improvement. This clause is designed to preserve the concept of indemnity so the insured does not profit from the loss (while the extra money you pay them becomes their profit) when the circumstances are such that it is impossible for the insurer to repair or replace the property without bettering the insured's position.

    What Is This “Betterment Charge” That An Insurance Company Wants Me to Pay?
    http://www.seedebtrun.com/2013/09/what-is-this-betterment-charge-that-an-insurance-company-wants-me-to-pay.html/

    A betterment charge is a tool that insurance companies use to avoid paying for the complete amount of repairs after a car accident. Basically, if a repair is needed to a “wear and tear” part of your vehicle, the insurance company will only pay a percentage of the cost of that replacement part. From their point of view, they are only responsible for returning your vehicle to the condition that it was in prior to the accident, and since you are getting a brand-new part, your vehicle will actually be in better condition after the repairs are completed. Therefore, the insurance company shouldn’t be on the hook for the entire amount. This charge is most often applied to tires, but can also be applied to parts of the exhaust.

    Had not heard of this.
    Which is your insurance company?

    You might check to see exactly when, this provision was added to your policy. If you had a policy for many years, it is hard to believe that a "new" provision could be enforceable against you, unless they sent it to you.
  • Posted by a hidden member.
    Log in to view his profile

    Mar 29, 2016 3:52 AM GMT
    I've never heard of this either. What happened? Did you get into a collision?
  • Posted by a hidden member.
    Log in to view his profile

    Apr 21, 2016 1:29 PM GMT
    I have never had that experience with my insurance company. Then again, I've been with mine for 16 years and they are a military and gov't members only company. Sounds like they're taking you for a ride.

    Cheers,

    Sean