Mechanical Breakdown Insurance: Worth The Cost?

Mechanical breakdown insurance (MBI) is an optional type of insurance that covers the cost of repairs to your vehicle's essential components, such as the engine and transmission, which are not typically covered by standard car insurance policies. MBI is similar to an extended warranty but provides broader coverage and is more affordable, costing between $30 and $100 per year on average. It is worth considering for those with newer vehicles who want to avoid high out-of-pocket repair costs and plan to keep their cars for a long time. However, it may not be necessary for those with comprehensive vehicle warranties or reliable, low-maintenance cars.

Mechanical Breakdown Insurance (MBI) vs Extended Warranty

Mechanical Breakdown Insurance (MBI) and extended warranties are similar in that they both cover repairs to a vehicle's major systems, which are not covered by standard car insurance policies. However, there are some key differences between the two.

MBI is an optional type of insurance that can be added to an existing car insurance policy. It covers repairs to a vehicle's major systems, such as the engine, transmission, and brakes, which are not typically covered by standard car insurance. MBI is typically purchased through a car insurance company and can be added to an existing policy for a low monthly cost. It is only available for new or relatively new vehicles, and the cost of a policy will depend on the length of the policy, the value of the car, the mileage, and the type of vehicle. MBI tends to have higher deductibles, so there will be more out-of-pocket costs if a vehicle breaks down frequently.

On the other hand, extended warranties are typically sold by dealerships, manufacturers, or third-party companies. They are often more expensive than MBI and must be paid for upfront in a large lump sum. Extended warranties usually offer more extensive coverage and allow customers to choose from multiple coverage levels. They also tend to have smaller deductibles. Extended warranties are generally available for vehicles with higher mileage and are a better option for those who plan to keep their vehicles for a longer period.

When deciding between MBI and an extended warranty, it is important to consider the age and mileage of the vehicle, the cost of the coverage, and the likelihood of needing repairs. MBI may be a good option for those with newer vehicles who want to avoid high out-of-pocket repair costs, while extended warranties may be better for those with older, higher-mileage vehicles who want more extensive coverage.

What does MBI cover?

Mechanical Breakdown Insurance (MBI) covers issues that are not covered by standard vehicle insurance. It provides coverage when the main systems of your vehicle, such as the transmission or engine, fail. MBI is similar to an extended warranty but provides coverage for more parts and systems.

MBI covers the following:

• Major engine parts such as pumps
• Electrical components
• Steering, air conditioning, and the car's fuel system (may be covered under some policies)

MBI does not cover the following:

• Routine maintenance or tyre-related issues
• Repairs for damages due to accidents or collisions
• Adding fluids (oil, coolant, etc.)
• Suspension alignment
• Towing

What doesn't MBI cover?

Mechanical Breakdown Insurance (MBI) is an optional type of insurance that provides coverage for major systems in your car, like the engine and transmission, which are not covered by standard car insurance policies.

MBI does not cover routine maintenance expenses, such as oil changes, tire rotations, or brake pad replacements. Wear and tear on parts such as belts, hoses, and brakes are also generally excluded from coverage.

MBI also does not cover towing or damage resulting from accidents, collisions, or environmental factors. If you want coverage for towing, you can add Emergency Roadside Service to your insurance policy.

Additionally, MBI does not cover repairs caused by poor maintenance on the driver's part. For example, if you fail to change your oil regularly and your engine breaks down as a result, MBI will not cover the repairs.

Lastly, MBI is not available for all vehicles. It is typically only available for newer cars with low mileage. The specific requirements vary by insurance company, but generally, a car must be less than 15 months old and have fewer than 15,000 miles to qualify for MBI.

How much does MBI cost?

The cost of mechanical breakdown insurance (MBI) varies depending on several factors, including the type of car, its mileage, and the insurance provider. On average, MBI costs between $30 and $100 per year as an add-on policy to your insurance coverage. This is a more affordable option when compared to extended car warranties, which typically cost between $400 and $900 per year.

MBI is generally more flexible than extended warranties, allowing you to pay as you go instead of paying a large sum upfront. The cost of coverage for MBI could range from $30 to $100, with a required deductible of $250 to $500 per incident. The pricing will depend on the year and make of the car, as well as its mileage.

It's worth noting that MBI is only available for new or relatively new vehicles, and the cost of a policy will depend on how long the policy will last, the value of the car, and whether it is a type of vehicle that is particularly expensive to repair, such as luxury cars or electric vehicles.

When considering MBI, it's important to shop around and get quotes from multiple insurance companies to find the best cost and coverage for your vehicle's needs.

Is MBI worth it?

Mechanical Breakdown Insurance (MBI) is an optional coverage that provides protection for repairs not typically covered by standard car insurance. It is an extra layer of protection that covers the cost of repairs, replacements, and other services to your vehicle in the event of mechanical failure. This includes repairs to a vehicle's engine, transmission, and brakes, which are not covered by standard car insurance.

The cost of MBI depends on the insurance company, but it is generally affordable, ranging from $30 to $100 per year. It is more cost-effective than an extended warranty, which can cost between $1,000 and $3,000 upfront. MBI is also more flexible, allowing you to choose your repair shop and pay as you go, whereas extended warranties often require upfront payment and have specific mechanics and garages that you must use.

MBI is worth considering if you are buying a new car, plan to keep your car for a long time, or are concerned about covering repair costs out of pocket. It is also a good option if you have an unreliable car model or one with high repair costs. However, it may not be worth it if you have a reliable vehicle with low average repair costs or if you have money set aside for repairs.

To decide if MBI is worth it for you, consider your vehicle's reliability and average repair costs. If your vehicle has high repair costs or a low dependability score, MBI could save you money. Additionally, if you plan to keep your vehicle for an extended period, MBI can provide valuable peace of mind and protection against unexpected repair costs.

Frequently asked questions