Depreciation relates to items that lose value over time due to wear and tear and aging. Normal wear and tear of a vehicle part is based on the life expectancy of that part as determined by the manufacturer. The difference between the cost of a new part and the value remaining in the old part is referred to as depreciation.
A charge imposed by Manitoba Public Insurance for replacing a partially used or worn part with a brand-new part.
If a partially used or worn part is damaged in the collision and is replaced with a new part, the vehicle is in “better” condition than it was before the accident.
MPI’s policy is to return the vehicle to its “pre-accident condition” and the customer is responsible for paying the difference in value between the worn and new part.
If the part was damaged in the accident, yes, the part needs to be replaced. Most times the part will be new because a used part of the same make and model of your vehicle might not be available
How much you pay depends on how much the part has aged from when it was new. If you recently replaced the damaged part and can provide the receipt, the Betterment Charge would be adjusted.
Yes. If you have any questions about MPI’s policy on Betterment, contact your Adjustor.
Certain extension policies may cover Betterment charges. If you are un sure, check with the Insurance Broker you purchased the policy from and they will be able to inform you what is and is not covered by your extension.
The Estimator will be able to tell you if Betterment will apply to your repairs at the time the vehicle is estimated.