QBE Regional Insurance
Claim Manual
QBE DAMAGE APPRAISAL NETWORK MANAGEMENT BETTERMENT GUIDE
Edition date (02-2010) Page 1 of 2
QBE Regional Insurance
Claim Manual
Betterment – should be considered on all parts that are subject to wear or deterioration. Betterment will vary depending on condition and usage. All betterment should be figured based on actual condition or usage documented by good photographs and a through explanation. Betterment can be applied to parts, labor and tax depending on jurisdiction. No betterment is to be applied on alternative parts/assemblies (alternative is anything other than OEM). The schedule below is only a guide; specific questions will be addressed by the claim operations.
State and local statutes prevail and should be reviewed prior to application of Betterment/Depreciation.
If parts are replaced with a rebuilt part or an alternative part, no depreciation will apply excluding engines and transmission.
Engine Compartment
Air Conditioning
Compressors/AC Clutches
§ Average Life: 100,000 miles. Betterment: 1.0% per 1,000 miles to a maximum of 75%. No betterment should be taken on rebuilt compressors.
AC Belts Average
§ Life 50,000 miles 2.0% per 1,000 miles to a maximum of 75%
Air Conditioning Condensers.
§ No betterment unless corrosion or prior damage exist.
Alternators
§ Average Life: 150,000 miles. Betterment: 1.0% per 1,000 miles to a maximum of 75%. No betterment should be taken on rebuilt alternators.
Batteries
§ Average Life: Use actual Warranty by Manufacturer. If no warranty information is available, use 36-month as a guide. No betterment taken on “lifetime” batteries.
Battery Cables
§ Average Life: 100,000 miles. Betterment: 1.0% per 1,000 miles to a maximum of 75%
Carburetors/Fuel Injectors
§ Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%. Betterment applies to new replacement, not rebuilt or overhauls.
Distributor Cap
Average Life: 50,000 miles. Betterment: 2.0% per 1,000 miles to a maximum of 75%
QBE DAMAGE APPRAISAL NETWORK MANAGEMENT BETTERMENT GUIDE
Edition date (02-2010) Page 3 of 6
QBE Regional Insurance
Claim Manual
Engines
§ Average Life Gas: 200,000 miles. Betterment: 0.667% per 1,000 miles. Maximum amount of betterment is 75%.
§ Average Life Diesel: 300,000 miles Betterment: 0.33% per 1,000 miles. Maximum amount of betterment is 75%.
Life is based on average maintenance. Records should be reviewed on extremely well maintained vehicles and variations should be documented by maintenance records.
Fan Clutch
§ Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%.
Fuel Pumps
§ Mechanical Average Life: 75,000 miles. Betterment: 1.33% per 1,000 miles to a maximum of 75%.
§ Electrical Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%.
Hoses/Belts
§ Average Life: 50,000 miles. Betterment: 2.0% per 1,000 miles to a maximum of 75%
Ignition wires
§ Average Life: 100,000 miles. Betterment: 1.0% per 1,000 miles to a maximum of 75%
Master Cylinder
§ Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%.
Plugs/ Condenser
§ Average Life: 50,000 miles. Betterment: 3.75% per 1,000 miles to a maximum of 75%
Points/Rotor
§ Average Life: 20,000 miles. Betterment: 2.0% per 1,000 miles to a maximum of 75%
Power Steering Hoses
§ Average Life: 50,000 miles. Betterment: 2.0% per 1,000 miles to a maximum of 75%
Power Steering Pump
§ Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%.
Radiators
§ Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%. No betterment unless excessive corrosion or prior damage exists.
QBE DAMAGE APPRAISAL NETWORK MANAGEMENT BETTERMENT GUIDE
Edition date (02-2010) Page 3 of 3
QBE Regional Insurance
Claim Manual
Starters
§ Average Life: 75,000 miles. Betterment: 1.33% per 1,000 miles to a maximum of 75%. No betterment should be taken on rebuilt starters.
Transmission
§ Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%.
Transfer Cases
§ Average Life: 200,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%.
Clutch
§ Average Life: 75,000 miles. Betterment: 1.33% per 1,000 miles to a maximum of 75%.
Water Pumps
§ Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%.
Electronic Components
Computers (Main Engine)
§ No betterment taken.
Anti-Theft Devices
§ No betterment.
Stereo and Sound Equipment
§ Average Life New OEM: 10 years. Betterment: 10% per year to a maximum of 75%.
§ Average Life Aftermarket: 10 years. Betterment assessed 10% per year to maximum of 75%. Use comparable model at replacement cost
Exhaust Components
Exhaust Systems
§ Muffler: Betterment: 1.0% per every 1000 miles to a maximum of 90%.
§ Catalytic Converters: Betterment 1.0% for every 1000 miles to a maximum of 80%.
§ No betterment taken on stainless steel components.
QBE DAMAGE APPRAISAL NETWORK MANAGEMENT BETTERMENT GUIDE
Edition date (02-2010) Page 5 of 6
QBE Regional Insurance
Claim Manual
Exterior Components
Paint
§ Average Life: 10 years. Betterment: 10% per year. No betterment on paints one year old or less, 20% on two years, etc. Maximum betterment is 75%. Betterment taken on complete paint jobs only including labor. Actual condition is extremely important, adjust accordingly and document with photographs. Betterment on painted stripes should also be determined in this manner if part of a complete refinish job.
Sheet Metal, Grilles, Bumpers, Hard Trim, Etc.
§ The amount of prior damage by rust or collision to sheet metal panels can be determined by using the actual cost of repair or replacement cost, whichever is less. Prior damage to grilles, bumpers, or hard trim is based on their condition and appearance with a maximum deduction for prior damage of 75% of replacement cost. This applies only to replacement of parts with prior damage. Actual cost not to exceed 75%.
Front Protective Covering (Bras)
§ Betterment: 20% per year to a maximum of 75%. Adjust for actual condition and wear, and document with photographs.
Vinyl Tops
§ Average Life: 7 to 10 Years. Betterment: 10% per year to a maximum of 75%. Base on actual condition and document with photographs.
Convertible Tops
§ Average Life: 7 to 10 Years. Betterment: 10% per year to a maximum of 75%. Base on actual condition and document with photographs
Pick-up Bed Covers
§ 10 years, 10% per year Age at time of loss Maximum 75%None if less than 6Months
Interior Components
Carpet
§ No betterment unless excessive wear, tears or cigarette burns which would suggest replacement was needed prior to the loss. If so, use 200,000 miles as a guide or 0.5% per 1,000 miles to a maximum of 75%.
Interior Trim
§ Based on condition or 10% year if stolen
Upholstery (Seat Covers, Soft Trim, Etc.)
§ No betterment unless unusual wear, tears or cigarette burns which would suggest replacement was needed prior to loss. If so, use 150,000 miles or 0.667% per 1,000 miles to a maximum of 75%. Base on actual condition and document with photographs.
Vinyl dash cover
§ 10 years, 10% per year Age at time of loss Maximum 75%None if less than 6Months
QBE DAMAGE APPRAISAL NETWORK MANAGEMENT BETTERMENT GUIDE
Edition date (02-2010) Page 5 of 5
QBE Regional Insurance
Claim Manual
Steering / Suspension Components
Axel Bearings
§ Average Life: 100,000 miles. Betterment: 1.0% per 1,000 miles to a maximum of 75%
Ball Joints
§ Average Life: 100,000 miles. Betterment: 1.0% per 1,000 miles to a maximum of 75%
Brakes
§ Pads and Shoes: Average life 50,000 miles. Betterment: 2.0% per 1,000 miles. Average life on Drums: 100,000 miles. Betterment: 1.0% per 1,000 miles. Average life on Rotors: 100,000 miles. Betterment: 1.0% per 1,000 miles. The maximum amount of betterment on the above is 75%.
Centrifugal Velocity (CVC) Joints (CV Joint Drive Axle Assemblies)
§ No betterment unless boots or seals are damaged causing excessive wear, then use 150,000 miles as a guide or 0.667% per 1,000 miles to a maximum of 75%.
Differentials/Transfer Cases
§ Average Life: 200,000 miles. Betterment: 0.5% per 1,000 miles to a maximum of 75%.
Shock Absorbers/Struts
§ Shocks: Average Life: 50,000 miles. Betterment: 2.0% per 1,000 miles. No betterment would apply to after-market shocks with a lifetime warranty if owner can provide warranty certificate.
§ Struts: Average Life: 75,000 miles. Betterment: 1.33% per 1,000 miles. Betterment is to be applied to the cost of the cartridge replacement only, even when replacing the entire strut assemblies. If cartridge replacement cost is not available, use $50 as the cost of the strut for regular suspension and $90 for heavy-duty suspension. A maximum of 75% betterment is applicable on above.
Steering Components, Including Rack and Pinion Assemblies
§ No betterment unless serious or unusual wear or prior damage. On rack and pinion assemblies, no betterment unless boots or seals are damaged and leaking causing excessive wear. If so, use 150,000 miles as a guide or 0.667% per 1,000 miles to a maximum of 75%. Use factory rebuilt; if unavailable, use
Tie Rod Ends
§ . Betterment: 0.667% per 1,000 miles to a maximum of 75%. No betterment unless excessive corrosion or prior damage exists.
Tires
§ Appraiser should measure the tread depth with gauge and base betterment according to new tire tread depth. If necessary, contact the tire dealer to determine tread depth of the new tire and apply betterment per remaining tread. Tread depth of new tires do vary, do not assume, verify and document with photographs. 7% for each 1/32 of wear (New tires tread depth averages 11/32)
QBE DAMAGE APPRAISAL NETWORK MANAGEMENT BETTERMENT GUIDE
Edition date (02-2010) Page 5 of 6
QBE Regional Insurance
Claim Manual
U Joints
§ Average Life: 150,000 miles. Betterment: 0.667% per 1,000 miles to a maximum of 75%.
Wheels
§ Steel - No betterment unless serious or unusual wear or prior damage.
§ Alloyed - Average Life: 100,000 miles. Betterment: 1.0% per 1,000 miles to a maximum of 75%
Wheel Bearings
§ Average Life: 100,000 miles. Betterment: 1.0% per 1,000 miles to a maximum of 75%
Edition date (02-2010) Page 5 of 6