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Betterment & Depreciation FAQ

What is Depreciation?

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.

What is Betterment?

A charge imposed by Manitoba Public Insurance for replacing a partially used or worn part with a brand-new part.

Why do I have to pay Betterment?

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.

What type of parts are subject to a Betterment Charge?

  • Batteries
  • Timing Belts
  • Exhaust (muffler,
  • Catalytic Converter
  • Engine Assemblies (Long & Short Blocks) Transmission Assemblies, Trans Axles, Differentials, Radiators, Condensers, Exhaust Components, Alternators, Starters and related power train components
  • CV Axle
  • Water Pump
  • Tires
  • Brake Pads, Shoes, Rotors && components
  • Suspension Components – Struts, Shocks, Ball joints, Tie Rod Ends, Sterring Racks, Drag Links, Strut Busshings, Hub & Bearing Assemblies
  • Air filters and Cabin Filters
  • fresh repaints of an entire car that, before the crash, had faded paint or many minor dings in the bodywork.
  • Old Damage (rust, rips & tears, burns)

What if there wasn’t anything wrong with my old part before the accident; do I have to get a 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 does Betterment Cost?

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.

The accident wasn’t my fault. Do I still have to pay Betterment?

Yes. If you have any questions about MPI’s policy on Betterment, contact your Adjustor.

Does my extension policy pay for the Betterment Charge?

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.

When will I know if I must pay Betterment?

The Estimator will be able to tell you if Betterment will apply to your repairs at the time the vehicle is estimated.