What is insurance?

What coverages do I have to buy?

What does "full coverage" mean?

How do I file a claim?

What happens after I file a claim?

Why do I have to pay my deductible when the other party is at fault?

Why did my adjuster deduct for betterment?

What is comparative negligence?

Why is my vehicle a total loss?

How will the insurance company settle my total loss?

Why did my adjuster deduct for betterment?
Betterment is also called depreciation. The two words are used interchangeably and mean your appraiser took a deduction, which you must pay, on one or more replacement parts because of wear and tear, unrelated prior damage, or deterioration.

Your appraiser can take betterment because auto insurance policies are actual cash value (ACV). The formula for this type of policy is

Replacement - Betterment = ACV.

Most people with a liability, collision, or comprehensive claim do not pay betterment. This is because damage due to an accident is usually limited to parts that last the life of the vehicle. The parts and procedures subject to betterment include the following:

• tires, wheels, and wheel covers
• belts, hoses, ignition wires, and battery cables
• suspension and steering components
• fan clutch and water pump
• battery, alternator, generator, starter, and distributor
• brakes, master cylinder, and power steering pump
• transmission, clutch, and mounts
• drive axle, differential, and boots
• fuel pump, carburetor, and fuel injectors
• manifold, catalytic converter, exhaust, and muffler
• engine and mounts
• carpet upholstery, dash pad, and headliner
• cassette and compact disk player
• convertible, vinyl, and padded tops
• full refinish