author-img
Written by:
Prachi Singh
Contributing Writer
Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.
author
Reviewed by:
Laura Longero
reviewer icon
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

Betterment is a condition relating to original equipment, or older parts, on your automobile, when having been damaged in an accident, may only be replaced with the new part(s). The resulting improved condition of the vehicle is known as betterment. Consequently, many insurers may ask the insured to contribute to the cost of the repair.

It will depend upon state laws and insurance company guidelines, but if you want better parts or newer parts than what the insurance company is offering to pay for, you may be able to receive them if you are willing to pay the difference.

So the basic definition of betterment is that your repaired vehicle is better than it was before it was damaged. Depending upon state laws, it may be that your insurance company may only reduce your settlement if your vehicle’s resale value has increased over what it was before the accident.

Generally, an insurer will deduct the difference between the cost of a used part (appropriate for the age and condition of the vehicle) and the cost of a new part. This, thus would be a betterment deduction.

For more information on this subject, you can check with your insurance agent or your state’s insurance regulator.

Michelle Megna contributed to this story.

Laura Longero

Ask the Insurance Expert

Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

John McCormick

Ask the Insurance Expert

John McCormick

Editorial Director

John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

Ask the Insurance Expert

Leslie Kasperowicz

Managing Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

Nupur Gambhir

Ask the Insurance Expert

Nupur Gambhir

Managing Editor

Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

Please Enter Valid Question. Min 50 to max 250 characters are allowed. Only (& ? , .) charcters are allowed.
Please Enter Valid Email.
Error: Security check failed
Thank You, Your message has been received. Our team of auto insurance experts typically answers questions within five working days. Note that due to the volume of questions we receive, not all may be answered. Due to technical error, please try again later.
Get quotes near you!
Please enter valid zip
author image
Contributing Writer

Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.