Automotive

Insurance "betterment" charges... anyone have advice?

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  • Oct 16th, 2019 7:56 pm
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Sep 27, 2011
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Insurance "betterment" charges... anyone have advice?

I was involved in a not at fault collision last week, dropped the car off at collision place of the insurance companies choice. Rental car issued due to undriveable condition. Didn't hear anything at all until today, when the collision center called to say it was ready, but I owe $360 in "betterment" charges for original parts, 10% of every year up to 75% or something like that. Car is a 2010. From research it seems this is for parts that are in better condition than they were before... okay I agree with that, but they were fine before the accident too, and not in need of replacement for any reason at all besides the accident.

So now I owe $360 on a not at fault claim, for parts that were fine before, but needed to be replaced in the accident. Seems totally ridiculous to not hear anything about this, only to be told I now owe this amount of money to get my car back.

Looking for anyone who has dealt with this before, anything I should do? Or just pay and realize insurance companies in Ontario are pure scum.

I found this on Economicals website:
But have no fear — you’ll be notified about any betterment fees before the repair is completed, so you shouldn’t be in for any surprises during the claim process.

https://www.economical.com/en/blog/econ ... nt-charges

No such notice was given, and the quote does not say anything about charging me directly.
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73 replies
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CoolDudeClan wrote: I was involved in a not at fault collision last week, dropped the car off at collision place of the insurance companies choice. Rental car issued due to undriveable condition. Didn't hear anything at all until today, when the collision center called to say it was ready, but I owe $360 in "betterment" charges for original parts, 10% of every year up to 75% or something like that. Car is a 2010. From research it seems this is for parts that are in better condition than they were before... okay I agree with that, but they were fine before the accident too, and not in need of replacement for any reason at all besides the accident.

So now I owe $360 on a not at fault claim, for parts that were fine before, but needed to be replaced in the accident. Seems totally ridiculous to not hear anything about this, only to be told I now owe this amount of money to get my car back.

Looking for anyone who has dealt with this before, anything I should do? Or just pay and realize insurance companies in Ontario are pure scum.

I found this on Economicals website:


https://www.economical.com/en/blog/econ ... nt-charges

No such notice was given, and the quote does not say anything about charging me directly.
Never heard of it. Did you ask your insurance company? What parts were they for?
If the women don't find you handsome, they should at least find you handy.
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Sep 21, 2011
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Jesus insurance company’s screw you in the premiums then find another way to screw you with “betterment charges” lol.
Sr. Member
Mar 22, 2004
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London, ON
I've never heard of this. Certainly sounds like another insurance company way to gouge. Smiling Face With Horns

If your parts are damaged and need to be replaced, what difference does this make if the new ones they use are "better"?. If I break your window, and have no choice but to replace it with a better one, should you have to pay???

EDIT: "The purpose of any insurance policy is to put you back into the same financial position you were in before a loss, no better and no worse. " --- oh yeah? What about resale value? Buyers balk as soon as they see any claims (minor or not) in a car's history!
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Oct 5, 2008
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betterment is a thing, parts were replaced that makes your car "better" than it was prior to the accident.

As insurance works on the concept of indemnification, which is to put you back in the same position you were prior to the loss, betterment can be payable,

For example, you have pre-existing damage to the left front of the bumper and it gets damaged in an accident to the right front, the insurer would paint the whole bumper, resulting in betterment.

Now I don't know why they didn't tell you about the charge ahead of time, that appears to be required.
Sr. Member
Mar 22, 2004
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Swerny wrote: As insurance works on the concept of indemnification, which is to put you back in the same position you were prior to the loss, betterment can be payable,
Sure, I get that, but diminished value is a real thing, but that is never considered. Therefore, after any accident/claim you are always in a "worse" position.
Swerny wrote: For example, you have pre-existing damage to the left front of the bumper and it gets damaged in an accident to the right front, the insurer would paint the whole bumper, resulting in betterment.
This is a slippery slope, and I guess it depends on the specifics of the OP's case. However, your specific example is a big grey area: most of the time, the entire (and perhaps several) panels are repainted. So if you had a scuff on the left side, but the accident was on the right side, and they had to repaint the whole bumper to fix the right side anyway, then I would call the "betterment" clause as an abuse of the situation.
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Aug 22, 2011
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Swerny wrote: betterment is a thing, parts were replaced that makes your car "better" than it was prior to the accident.

As insurance works on the concept of indemnification, which is to put you back in the same position you were prior to the loss, betterment can be payable,

For example, you have pre-existing damage to the left front of the bumper and it gets damaged in an accident to the right front, the insurer would paint the whole bumper, resulting in betterment.

Now I don't know why they didn't tell you about the charge ahead of time, that appears to be required.
BS...
They'd be charging everyone getting new paint jobs, when there's a need to blend a door with a fender as an example.
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vkizzle wrote: BS...
They'd be charging everyone getting new paint jobs, when there's a need to blend a door with a fender as an example.
you can say it's BS, I'm telling you it exists, that's all.

https://www.economical.com/en/blog/econ ... nt-charges

OP should read his policy and whatever he signed to allow the car to be fixed.

What is a betterment charge?

The purpose of any insurance policy is to put you back into the same financial position you were in before a loss, no better and no worse. When you’re making a car insurance claim, you’re expected to pay a betterment charge when the repairs to your vehicle will put it in better condition than it was in before the collision. But have no fear — you’ll be notified about any betterment fees before the repair is completed, so you shouldn’t be in for any surprises during the claim process.
How do betterment charges work?

Generally speaking, car insurance policies are set up to cover the actual cash value of a vehicle and its parts. When your vehicle is damaged in a collision, your insurance company will cover the costs to repair it. (However, if the repairs will cost more than the actual cash value of your vehicle, your insurance company will pay you the actual cash value instead.)
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Thanks everyone. I will not be paying this.

There was no notice at all as stated, One person was honest with me only a select few companies use this BS to try and recover more money, the instance they know it happened was the same company.

This does not put me the same financial position, the parts were fine before the accident and replaced purely on the basis of being damaged by the accident. How does me paying out of pocket put me in the same position?
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Sr. Member
Mar 22, 2004
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London, ON
CoolDudeClan wrote: Thanks everyone. I will not be paying this.

There was no notice at all as stated, One person was honest with me only a select few companies use this BS to try and recover more money, the instance they know it happened was the same company.

This does not put me the same financial position, the parts were fine before the accident and replaced purely on the basis of being damaged by the accident. How does me paying out of pocket put me in the same position?
Please keep us posted. I'm very curious as to their justification.
Sr. Member
Jul 19, 2010
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Calgary
does it say what parts you are being charged for? I would be ok with "betterment" if my tires were like 50% worn, and insurance gave me 4 brand new tires.
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Jun 24, 2015
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yeah pls let us know, this may be a good reason to switch insurance companies
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drtmrcht wrote: does it say what parts you are being charged for? I would be ok with "betterment" if my tires were like 50% worn, and insurance gave me 4 brand new tires.
Bunch of stuff, but one of the parts is the control arm, which I find absolutely hilarious. The impact was hard directly to the wheel so of course there were some things bent. This part was absolutely fine before. The exact parts that would be damaged in the accident, and I need to go out of pocket. Nothing like a tire. What a joke...
Last edited by drz400 on Oct 11th, 2019 4:09 pm, edited 1 time in total.
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If they refuse, demand they put on "equally worn" new car parts.
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engineered wrote: If they refuse, demand they put on "equally worn" new car parts.
If this betterment is a valid claim, every single person would need to pay it. No used part currently on a vehicle will be the same condition as a new one put on. Whole situation makes no sense to me. Now I get to spend my friday on the phone!
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Sr. Member
Mar 22, 2004
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Agreed, this is absolute BS. It's not like your car is worth more because you have a new control arm. The tire thing, I could "maybe" swallow, but even still, that's pushing it.

Good luck, fight the good fight!
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Aug 22, 2011
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Insurance is one big f-ing sham.

"As stated in your insurance policy, your insurance company has the right to repair, rebuild, or replace any damaged parts with other parts "of like kind and quality." This means that if you damage the front fender of your five-year-old vehicle, your insurer can replace the damaged fender with a used one of like kind and quality as the original."
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vkizzle wrote: Insurance is one big f-ing sham.

"As stated in your insurance policy, your insurance company has the right to repair, rebuild, or replace any damaged parts with other parts "of like kind and quality." This means that if you damage the front fender of your five-year-old vehicle, your insurer can replace the damaged fender with a used one of like kind and quality as the original."
And what do you think they do if they can’t find a similar used part?

They put on a new one and charge betterment
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Sep 2, 2004
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This definitely should have been a discussion with your insurance company and not a surprise from the shop. Your car is 9 or 10 y.o so I get where they're coming from with brand new parts. Your old ones could have wear and tear but the question is did that matter? If the answer is no then the betterment is not reasonable.
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Swerny wrote: And what do you think they do if they can’t find a similar used part?

They put on a new one and charge betterment
This. OP is driving a 9 or 10 year old vehicle (2010 model yr). Betterment is most likely to pop up on older vehicles like this where doing a bunch of repairs with brand new parts does indeed make the vehicle marginally better than the condition it was in before.

I once had a not at fault fender bender in a 12 yr old vehicle. Before, the fender had been repaired from yrs of rust with big bondo and fibreglass patches, was painted by hand with a roller and Tremclad rust paint, and it had a couple of dents/creases that were there before the collision. It was repaired with a new fender and professional paint job that they remarkably managed to match the Tremclad colour!

I got dinged by the insurance company for betterment charges. I didn’t like it, but it was hard to argue the point because the vehicle was clearly being returned in much better condition (at least that corner). I shrugged it off and moved on.

OP should get an explanation for the calculations and should press them on why they didn’t follow their posted procedure. This will be the only way where there’s room to get out of the charges - error in calculations, mis-application of policy, or failure to follow procedures. Otherwise, the concept of betterment is legit.

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