Auto Insurance: Friend Or Foe In Mechanical Breakdowns?

Mechanical breakdown insurance is an optional add-on to your car insurance policy that covers repairs to your vehicle's essential components in the event of a mechanical breakdown. This type of insurance is especially useful if you're concerned about paying for unexpected repair costs, as it can provide peace of mind while on the road.

What is mechanical breakdown insurance?

Mechanical breakdown insurance (MBI) is an optional type of insurance that provides coverage for the major systems in your car, like the engine and transmission, which are not covered by standard car insurance policies. It is similar to an extended warranty but provides more coverage. It is sometimes referred to as car repair insurance.

MBI is an insurance policy that covers your car's major parts and systems. It can help pay for repairs to your powertrain, electrical systems, and other major components. Traditional car insurance helps cover accidents and damage to the body of your car, but MBI deals with the components that keep your car working and on the road.

MBI is available for new or leased cars that are less than 15 months old and have less than 15,000 miles on them. You can renew it for up to seven years or 100,000 miles, whichever comes first. MBI covers the cost of repairing or replacing the major components of your vehicle if they break down due to mechanical failure. In return, you make premium payments, typically in monthly instalments for the duration of the coverage period.

MBI works by allowing you to submit a claim to your insurance company if your car has a major system issue. Once your claim is approved, you can go to a mechanic of your choosing and only pay your deductible. Your insurance company will cover the rest. Some MBI policies require you to take your car to a specific repair facility, but others allow you to choose your repair shop.

MBI typically covers:

• Major engine parts, such as pumps
• Electrical components
• Air conditioning, steering, and fuel systems

MBI does not typically cover:

• Maintenance items, like tune-ups, oil changes, tire rotation, alignments, lubrication, coolant changes, and replacing spark plugs, brake pads, brake shoes, and tires
• Damage caused by corrosion and improper maintenance
• Damage from accidents or natural disasters
• Breakdowns caused by overheating, improper maintenance, alterations to your vehicle, towing excessive weight, or any pre-existing conditions

The cost of MBI varies depending on the company and the vehicle, but it typically costs around $100 per year, with an average deductible of around $250. MBI is worth considering if you are buying a new car, planning to keep your car for a while, or are concerned about paying for repair costs out of pocket.

What does mechanical breakdown insurance cover?

Mechanical breakdown insurance (MBI) is an optional coverage that provides protection for repairs not typically covered by standard car insurance. It is similar to an extended warranty but provides more coverage. MBI covers the cost of repairs to your vehicle's essential components if it breaks down. This includes repairs to the engine, transmission, and brakes. It also covers the internal computer, GPS, heating and cooling system, electrical systems, and fuel systems.

MBI does not cover routine maintenance services, including oil changes, spark plug replacement, and tire rotations. It also does not cover wear and tear items such as fluids (coolant, washer fluid, brake), brake pad replacement, and steering.

How does mechanical breakdown insurance work?

Mechanical breakdown insurance (MBI) is an optional coverage that can be added to your auto insurance policy. It covers the cost of repairs to your vehicle's major parts and systems, such as the powertrain, electrical systems, and other mechanical components, in the event of a breakdown. MBI is similar to an extended warranty but is typically offered by insurance companies rather than dealerships.

To obtain MBI, your vehicle must be new or leased, less than 15 months old, and have less than 15,000 miles on the odometer. You must also be the first owner of the vehicle. Once purchased, MBI can be renewed annually for up to seven years or 100,000 miles, whichever comes first.

In the event of a breakdown, you will need to contact your insurance company and file a claim. Depending on the issue, you may need to obtain an estimate for the repairs from a mechanic. Once your claim is approved, the insurance company will cover the cost of repairs, minus your deductible. Most insurance companies allow you to choose your preferred mechanic.

MBI typically covers the following:

• Major engine parts
• Electrical components
• Heating and cooling system
• Internal computer and GPS

It is important to note that MBI does not cover routine maintenance, wear and tear, or damage resulting from accidents, collisions, or environmental factors. Additionally, MBI does not include roadside assistance or towing services.

The cost of MBI varies depending on the company and the vehicle, but it generally ranges from $30 to $100 per year. It is worth considering the age and reliability of your car, the cost of potential repairs, and whether you already have an extended warranty or coverage from your manufacturer's warranty when deciding if MBI is right for you.

How much does mechanical breakdown insurance cost?

The cost of mechanical breakdown insurance (MBI) varies depending on several factors, such as the company providing the coverage, the type of car, and whether it is purchased as a standalone policy or added to an existing auto insurance policy. On average, MBI costs around $100 per year, but quotes range from $30 to $120 per year.

The cost of MBI is influenced by the vehicle's make, model, age, and mileage. Luxury cars or electric vehicles, for instance, may have higher MBI premiums due to their typically higher repair costs. The duration of the policy, which is often determined by the vehicle's age and mileage, also affects the price.

Compared to an extended warranty, MBI is generally more affordable, with extended warranties averaging between $1,300 and $4,600 per year. However, MBI policies usually have higher deductibles, ranging from $200 to $500, which means higher out-of-pocket expenses for car owners.

When deciding whether to purchase MBI, it's important to consider the likelihood of needing repairs, the potential cost of those repairs, and the peace of mind that comes with having coverage.

Is mechanical breakdown insurance worth it?

Mechanical breakdown insurance (MBI) is an optional add-on to your car insurance policy. It covers the cost of repairing or replacing vehicle parts after they break down due to normal use, rather than as a result of a collision. This includes major systems in your car, like the engine and transmission, which are not covered by standard car insurance policies.

MBI is worth considering if you're buying a new car, planning to keep your car for a while, or are concerned about paying for repair costs out of pocket. If you plan to drive your new car for multiple years, getting MBI will help ensure that your car stays fully functioning.

However, MBI is not always worth it. For example, if your vehicle is highly reliable or has low average repair costs, you may be better off without it. Similarly, if you have money set aside for repairs, you may prefer to pay for them out of pocket.

The cost of MBI varies depending on the insurance company and your vehicle, but it typically ranges from $30 to $100 per year. This is more affordable than an extended car warranty, which offers similar coverage. When deciding whether to purchase MBI, consider your vehicle's reliability and average repair costs. If your car has a low dependability score or is known for high repair costs, MBI could save you money.

Ultimately, the decision to purchase MBI depends on your individual circumstances and preferences. It may be worth it for some drivers but not for others.

Frequently asked questions