Haris Ashley
Mechanical breakdown insurance (MBI) is an optional add-on to your auto insurance policy that covers the cost of repairs to your vehicle's major mechanical systems in the event of a sudden breakdown. It is similar to an extended warranty but is typically offered by insurance companies and covers a broader range of vehicles. While traditional car insurance covers accidents and damage to the body of your car, MBI covers the components that keep your car running, such as the powertrain and electrical systems. Some of the major auto insurance carriers that provide MBI include GEICO, Progressive, and Mercury Insurance.
| Characteristics | Values |
|---|---|
| Type of insurance | Mechanical breakdown insurance (MBI) |
| What it covers | Costs of repairs for major mechanical failures, e.g. powertrain, electrical systems, air conditioning and heating |
| What it doesn't cover | Routine maintenance, e.g. oil changes, tire rotations, brake pad replacements, wear and tear, towing |
| Cost | $30-100 per year |
| Deductible | $100-500 |
| Vehicle eligibility | Newer vehicles with low mileage, commonly up to 15,000 miles |
| Providers | GEICO, Progressive, Mercury Insurance, olive, CarShield, Endurance |
What You'll Learn
What is mechanical breakdown insurance?
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 in the event of a mechanical breakdown, similar to an extended car warranty. MBI helps pay for repairs to major vehicle components, including the engine, transmission, drive axle, air conditioning, heating, steering, suspension, emissions, and exhaust. It does not cover routine maintenance or upkeep, such as oil changes, spark plug replacement, tire rotations, or other wear and tear items.
MBI is typically available for newer vehicles with low mileage, usually under 15,000 miles, and can be renewed for up to seven years or 100,000 miles. The cost of MBI varies depending on the insurance provider, type of car, and mileage, but it generally ranges from $30 to $100 per year. Some insurance companies, like Progressive, offer MBI as a stand-alone product, while others, like GEICO, offer it as an add-on to an existing car insurance policy.
MBI can provide valuable peace of mind, especially for those with newer vehicles who are concerned about covering out-of-pocket repair costs. It can also be a good option for those who plan to keep their vehicles for a long time or those with vehicles that have high repair costs. However, it may not be worth it for those with reliable vehicles or those who have money set aside for potential repairs.
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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 an extra layer of protection that you can add to your auto insurance policy, similar to a car warranty. It covers the cost of repairs if your vehicle breaks down, needs replacement parts, or suffers other types of mechanical problems. This includes repairs to your vehicle's powertrain, electrical systems, and other major components.
MBI is ideal for those with newer vehicles who are concerned about covering out-of-pocket repair costs, as well as those who plan to keep their vehicles for a long time. It is available for various vehicles, including cars, trucks, and SUVs, and in some cases, RVs.
MBI covers repairs to your vehicle's essential systems, such as air conditioning and heating. It is important to note that MBI does not cover routine maintenance services, including oil changes, spark plug replacement, tire rotations, and other wear and tear components. Additionally, MBI does not cover towing or damage resulting from accidents, collisions, or environmental factors.
When purchasing MBI, you will need to choose a deductible, which is the amount you will pay before your insurance coverage kicks in. Deductibles can range from $100 to $500, depending on your budget and vehicle type. MBI is typically more affordable than an extended car warranty, costing between $30 and $100 per year on average.
In summary, mechanical breakdown insurance provides valuable protection for unexpected vehicle repairs, covering major components and essential systems. It is a cost-effective way to ensure peace of mind and avoid high out-of-pocket expenses in the event of a mechanical breakdown.
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What is not covered under mechanical breakdown insurance?
Mechanical breakdown insurance (MBI) is an optional coverage that provides protection for repairs not typically covered by standard car insurance. However, there are certain exclusions to what is covered by MBI.
MBI does not cover routine maintenance and servicing, such as oil changes, spark plug replacement, tire rotations, and other wear and tear components. This includes fluids (coolant, washer fluid, brake fluid), brake pad replacement, and tune-ups. Additionally, MBI does not cover the cost of towing your vehicle.
MBI also does not cover damage caused by accidents, collisions, or environmental factors. This includes damage resulting from corrosion, misuse, or abuse, and improper maintenance.
Furthermore, MBI has limitations on the types of vehicles it covers. It is typically only available for new or relatively new vehicles with low mileage.
It's important to note that specific exclusions and coverage may vary depending on the insurance provider and the policy details. Therefore, it is essential to carefully review the terms and conditions of your MBI policy to understand what is and isn't covered.
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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 essential components in the event of a mechanical breakdown. It is similar to an extended warranty but typically costs less and is limited to newer vehicles. MBI can be purchased from specialist providers or added to your existing car insurance policy as supplemental coverage.
MBI covers repairs to major vehicle components, such as the powertrain, transmission, and engine, which can be expensive to fix. It is important to note that MBI does not cover routine maintenance, such as oil changes, tire rotations, or brake pad replacements, and it also excludes wear and tear on parts like belts, hoses, and brakes. Additionally, MBI does not provide coverage for towing services or damage resulting from accidents or collisions.
When purchasing MBI, you will need to consider factors such as the type of car you own, the mileage on your odometer, and your chosen insurance provider, as these can impact the cost of your policy. MBI policies typically have a deductible, which is the amount you must pay before your insurance coverage begins. The deductible for MBI policies can range from $100 to $500, depending on the insurance provider and your vehicle.
In the event of a mechanical breakdown, you will need to contact your insurance provider and provide information about the issue. They may require a diagnosis and repair estimate from an approved repair facility before authorising any work to be carried out. Once your claim is approved, you will pay the deductible directly to the repair facility, and the insurance company will cover the remaining balance.
MBI can provide peace of mind for drivers concerned about unexpected repair costs, especially for newer vehicles or those with low reliability ratings. However, it may not be necessary if you already have an extended warranty or if your vehicle has a good track record of reliability and low repair costs.
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How much does mechanical breakdown insurance cost?
The cost of mechanical breakdown insurance (MBI) varies depending on several factors. On average, MBI costs around $100 per year, with an average deductible of $250. However, the price can differ based on the insurance company, the vehicle, and the length of the policy.
MBI is generally cheaper than extended warranties, which can cost between $1,300 and $4,600 per year, or $1,214 for a three-year plan, according to a Consumers Reports study. MBI is also more flexible in terms of payment options, allowing for monthly or annual payments, while extended warranties often require a high upfront cost.
When it comes to specific providers, GEICO offers MBI with a $250 deductible, while a reviewer from California mentioned paying $31 per month for bumper-to-bumper coverage on their Mercedes through another provider. Progressive's Good Sam mechanical breakdown insurance allows customers to choose a deductible ranging from $100 to $500, and their rates can be locked in for up to three years.
In terms of overall cost, it's important to consider the likelihood of a breakdown occurring and the potential repair costs. MBI is generally recommended for newer cars, as breakdowns are less frequent, and for vehicles that are likely to have expensive repairs. By comparing rates from multiple insurers, you can find affordable coverage that suits your needs.
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Frequently asked questions
Mechanical breakdown insurance, also known as MBI, is an insurance plan that covers the cost of repairing or replacing car parts that suffer unexpected mechanical failures. This includes major components such as the powertrain, electrical systems, and air conditioning. MBI is usually purchased as an add-on to an existing car insurance policy and can provide peace of mind for those worried about paying for unexpected repairs.
If your vehicle suffers a mechanical breakdown, you can take it to a repair shop of your choice. You will need to pay a deductible, typically ranging from $100 to $500, and your mechanical breakdown insurance will cover the remaining cost of the covered repairs.
Mechanical breakdown insurance covers the cost of repairing or replacing major vehicle components such as the engine, transmission, electrical systems, and air conditioning. It is important to note that MBI does not cover routine maintenance, wear and tear, or damage resulting from accidents or collisions.
The cost of mechanical breakdown insurance can vary depending on the insurance provider and your vehicle. It typically ranges from $30 to $100 per year, with some companies offering coverage for up to 7 years or 100,000 miles. The deductible, or the amount you pay out of pocket before insurance coverage kicks in, is usually between $100 and $500.
Several well-known car insurance carriers offer mechanical breakdown insurance, including GEICO, Progressive, Mercury Insurance, and Endurance. GEICO, for example, offers MBI for new or leased vehicles that are less than 15 months old and have fewer than 15,000 miles. Progressive's Good Sam's mechanical repair plan is available for vehicles up to 15 model years old with less than 100,000 miles.
