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What is Waiver of Betterment?

Updated: Dec 18, 2023

Owning a car comes with responsibilities, and car insurance is one of them. But what's this "betterment" thing, and why should you care about it?

man repairing car with betterment

What is Betterment in Car Insurance?

Betterment isn't just insurance jargon; it can hit your wallet hard when you make a claim.

Betterment simply means making something better.

For instance, after an accident, your repair shop may replace old, damaged parts with new ones, improving your car's condition compared to before the accident. However, you'll need to pay for part of the costs of the new parts.

Betterment can affect your finances when you make a claim.

Why Should You Care About Betterment?

1. Cost

Imagine your 8-year-old car has an accident, damaging the bumper and lights. You need to replace some parts with new ones that cost about RM 5,000. For an 8-year-old car, you will need to pay a betterment rate of 30% of the cost, which means you'll pay RM 1,500, and your insurer covers the remaining RM 3,500.

But here's the trick: If you have a "waiver of betterment" add-on to your insurance, you won't pay anything extra; your insurance will cover the entire cost.

2. Depreciation

We might think cars age like fine wine, but their parts don't. With time, car components wear out and lose value. Insurers consider this when tallying repair costs. This is the Betterment Rate Table given by General Insurance Association of Malaysia (PIAM)

Age of Your Car (Years)

Rate of Betterment

less than 5












10 and above


Based on the table above, you will be required to pay up to 40% of the cost to replace damaged parts with new ones.

To shield yourself from this cost, consider adding on the Waiver of Betterment to your car insurance policy. (This is especially important if your car is aged 5 years and above)

Get your car insurance from Tune Protect with the Waiver of Betterment add on today!

If an accident occurs, you won’t have to worry about betterment costs.

Click below for a free quote:

Tune Protect has many ongoing campaigns for you to win rewards and also 10% discount when you buy online.

If this was helpful to you, do share it with your friends who might need to know as well 😊


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