Should I buy Waiver of Betterment Contribution?

Waiver of Betterment Contribution is an add-on coverage that you can buy. But before we discuss about this add-on benefit, let us talk about betterment first. So, what is betterment?

Betterment is a term used when your car after repair is in a better position before repair. How can this happen? This is possible when your car is replaced with brand new part, instead of used-part. Example, your car before accident is already 10 year old, thus all parts and fitting of the car is actually 10 year old too. If you send for repair and it get replaced with brand new original part, that mean your car is now actually better than it original condition prior to the accident.

Insurance is about getting you back to your original position prior to the loss. Thus, if your car’s part is already 10 years old before an accident, your insurance is supposed to bring you back to its condition (10 year old). If new parts is used, then your insurance company will apply betterment charges to you depending on vehicle age.

Vehicle AgeRate of Betterment
Less than 5 Years0%
10 and above40%

For vehicle age more than 5 years, insurance company usually advice you to send to their Panel Workshop for repair after accident. These panel workshop will repair or replace with similar part and no betterment will be charged. However, if you insist of replacing your damaged part with original parts, betterment will then be applied.

So, knowing about betterment now, you can actually add-on Wavier of betterment Contribution, and upon accident, have your vehicle replaced with new parts instead of used/re-condition parts.

Now, we shall discussed if you should buy this add-on (Wavier of Betterment Contribution).

You need to realize that there are times where used part may not be readily available for your vehicle model, and repairer are force to use new, original part to repair your vehicle, otherwise, your vehicle may be struck at the workshop for month due to lack of parts.

If your car model is those not very common on the road, and it is more than 5 years old, you are advice to take up this wavier of betterment contribution as it is very likely that used parts is not readily available.

Or you are those who only wanted the best and original parts on your car, then with this wavier of betterment contribution added, you can have your car repaired at your brand service centre and replaced with new original parts.