Auto Mechanical Insurance: What's The True Cost?

Mechanical breakdown insurance, also known as car repair insurance, is an optional add-on to your car insurance policy. It covers the cost of repairs to your vehicle's essential components in the event of a mechanical breakdown. This type of insurance is particularly useful for those with newer vehicles who are concerned about covering out-of-pocket repair costs, as well as those with older, less reliable cars. The cost of mechanical breakdown insurance varies, but it is generally cheaper than an extended car warranty, with an average price of between $30 and $100 per year.

What does mechanical breakdown insurance cover?

Mechanical breakdown insurance (MBI) is an optional coverage that can be added to some car insurance policies. It covers repairs for major vehicle components, including the powertrain, transmission, and engine, which can suffer mechanical failure or breakdown. MBI is ideal for newer vehicles with less than 15,000 miles on the odometer, as it provides an extra layer of protection for unexpected repairs.

MBI covers repairs for mechanical failures not caused by a car accident or normal wear and tear. It is similar to an extended warranty but typically costs less. While an extended warranty may only cover repairs for defective materials or improper manufacturing, MBI covers mechanical issues more broadly. Additionally, MBI policies usually have longer terms than extended warranties. For example, GEICO's MBI plan offers coverage for up to 7 years/100,000 miles, whereas car warranties often provide less than 5 years/60,000 miles of coverage.

MBI covers repairs to major vehicle components, including the following:

• Emissions and exhaust
• Air conditioning and heating

However, it is important to note that MBI does not cover routine maintenance such as replacing brake pads, filters, tires, or spark plugs. Additionally, MBI does not cover towing or damage resulting from accidents, collisions, or environmental factors.

The cost of MBI varies depending on the vehicle and provider, but it is generally more affordable than an extended warranty, ranging from $30 to $100 per year. GEICO, Progressive, and Mercury Insurance are a few well-known insurers that offer MBI.

What isn't covered by mechanical breakdown insurance?

Mechanical breakdown insurance (MBI) is a great way to protect yourself from unexpected vehicle repairs and breakdowns. However, it's important to note that MBI does not cover everything. Here are some things that are typically not covered by MBI:

• Routine maintenance and repairs: This includes oil changes, tire rotations, brake pad replacements, tune-ups, suspension alignment, wheel balancing, and other regular maintenance services.
• Wear and tear: Parts that are subject to wear and tear, such as belts, hoses, and brakes, are generally excluded from coverage.
• Towing: MBI does not cover the cost of towing your vehicle to a repair shop. However, you can add Emergency Roadside Service or Roadside Assistance to your insurance policy for additional coverage.
• Damage from accidents or collisions: MBI is not meant to cover repairs due to accidents or collisions. Instead, these would typically be covered by your collision or comprehensive insurance.
• Pre-existing damage: MBI does not cover issues that were present before you purchased the insurance.
• Non-mechanical items: Damage to non-mechanical items, such as vehicle trim and moulding, is generally not covered by MBI.
• Parts covered by a recall or warranty: If a part is covered by a manufacturer's recall or warranty, MBI will not provide additional coverage.
• High-value vehicles: MBI may not be available for high-value vehicles, such as luxury cars or sports cars.
• Alterations to your vehicle: Repairs needed due to alterations or modifications made to your vehicle may not be covered.
• Overheating: Damage caused by overheating is typically excluded from MBI coverage.

It's important to carefully review the specific exclusions and limitations of any MBI policy before purchasing it, as the coverage can vary between insurance providers.

How does mechanical breakdown insurance work?

Mechanical breakdown insurance (MBI) is an optional add-on to your car insurance policy that covers repairs to your vehicle's major parts and systems, such as the powertrain and electrical systems. It is similar to an extended warranty but is typically offered by insurance companies rather than dealerships or third-party providers. MBI can be purchased for new or used cars, though eligibility requirements vary by provider. For example, GEICO offers MBI for new or leased cars under 15 months old with less than 15,000 miles, while Mercury Insurance offers MBI for both new and used cars.

When you experience a mechanical breakdown, you can take your vehicle to a repair shop of your choice or a preferred service provider. You will need to pay a deductible, typically ranging from $100 to $500, and then your mechanical breakdown insurance will cover the remaining cost of the repairs. It's important to note that MBI does not cover routine maintenance, such as oil changes or tire rotations, or damage caused by accidents, collisions, or environmental factors.

The cost of MBI varies but is generally more affordable than an extended warranty, ranging from $30 to $100 per year. When deciding if MBI is worth it for you, consider the age and mileage of your vehicle, the likelihood of a breakdown, and your ability to afford unexpected repair costs.

In summary, mechanical breakdown insurance provides peace of mind by offering protection against costly repairs for mechanical issues not caused by accidents or wear and tear. It fills the gap between traditional car insurance and extended warranties, giving you comprehensive coverage for unexpected breakdowns.

How much does mechanical breakdown insurance cost?

Mechanical breakdown insurance (MBI) is an optional add-on to your car insurance policy that covers the cost of repairs to your vehicle's mechanical and electrical systems in the event of a breakdown. The cost of MBI varies depending on several factors, including the company providing the coverage, the type of car, and the vehicle's age and mileage.

On average, MBI costs around $100 per year, with deductibles ranging from $250 to $500. However, the price can be as low as $30 per year or as high as $120 per year. The cost of a standalone MBI policy may be higher than adding it as an endorsement to an existing auto insurance policy.

The type of car you drive can also impact the cost. Luxury cars or electric vehicles, which are typically more expensive to repair, will likely have higher MBI premiums than standard private passenger cars.

It's worth noting that MBI is usually only available for new or relatively new vehicles with low mileage, typically under 15,000 miles.

When considering MBI, it's important to compare rates from multiple insurers as the cost can vary significantly. Additionally, it's essential to review the specific coverage details, as some policies may have restrictions on repair facilities or exclude certain types of vehicles.

Is mechanical breakdown insurance worth it?

Mechanical breakdown insurance (MBI) is an optional coverage that provides protection for repairs not typically covered by standard car insurance. It covers repairs to your vehicle's essential components if your car breaks down.

MBI is generally considered worth it if you have a newer vehicle and are concerned about covering out-of-pocket repair costs, or if you plan to keep your vehicle for a long time. It may not be worth it if you have an older, more reliable model, or if you have money set aside for repairs.

MBI costs between $30 and $100 per year on average as an add-on policy, which is more affordable than an extended car warranty offering similar coverage. MBI is also more flexible than an extended warranty, which may require a high upfront cost.

MBI covers:

• Air conditioning and heating
• Electrical systems
• Powertrain
• Steering
• Fuel systems

MBI does not cover:

• Routine maintenance and wear and tear items, such as oil changes, spark plug replacement and tire rotations
• Damage caused by poor maintenance, accidents or natural disasters
• Towing costs

When deciding whether to purchase MBI, consider your vehicle's reliability and average repair costs. If your vehicle has a lower dependability score or is known for having higher repair costs, MBI could save you money.

Some insurance companies that offer MBI include Geico, Progressive, Mercury Insurance, Allstate and American Family.

Frequently asked questions