Betterment is the term used when property is repaired which results in it being in a better condition than before the incident. Consequentially insurers may ask the client to contribute to the cost of the repair. The contribution is referred to as betterment.

Car insurance provides indemnity insurance. Indemnity insurance is the undertaking to restore the client to the same financial position they were in before the loss occurred. If, before the loss, the car had 2 thread bare tyres and now, as a result of the repairs, it has 2 brand new tyres the client is asked to contribute to the cost of putting the car into a better position. (If the tyres had contributed to the cause of the incident the claim could be repudiated on the grounds that the car was not in a roadworthy condition.)

The client must first of all agree to the costs. At QuoteMart we only ask for a contribution if the betterment is greater than £40.

The exclusion of betterment is clearly explained in the policy documentation under Own Damage Exclusions number 6. It states:

“ This section of the policy does not provide cover for that part of the cost of repair or replacement which improves the insured property beyond its condition before the loss or damage occurred.”