Mechanical Breakdown Coverage: Which Auto Insurance Companies Offer This?

Mechanical breakdown insurance (MBI) is an optional add-on to your car insurance policy that covers repairs to your vehicle's major systems and parts, such as the engine, transmission, electrical system, and fuel system, which are not covered by standard insurance policies. While MBI is similar to an extended warranty, it provides broader coverage and can be purchased through an auto insurance provider, whereas extended warranties are usually offered by dealerships, manufacturers, or third-party companies. Some of the major auto insurance companies that offer MBI include GEICO, Allstate, Mercury, and olive, with GEICO being one of the largest providers.

What is mechanical breakdown insurance?

Mechanical breakdown insurance (MBI) is an optional type of insurance that covers the cost of repairing or replacing the major components of your vehicle if they break down due to a mechanical failure. It is similar to an extended warranty but provides more coverage. MBI is sometimes referred to as car repair insurance.

MBI is not included in standard car insurance policies. It is an extra layer of protection that covers the cost of repairs if your vehicle breaks down, needs replacement parts, or suffers other types of mechanical problems.

MBI covers major engine parts, such as pumps, and electrical components. Some policies also cover steering, air conditioning, and fuel systems. It does not cover routine maintenance, such as oil changes, tire rotations, or brake pad replacements.

MBI typically costs around $100 per year, with an average deductible of $250. The cost depends on the value of the vehicle, the length of the policy, the vehicle's mileage, and the type of vehicle.

When purchasing MBI, you will pay a premium, typically in monthly installments for the duration of the coverage period. Once your claim is approved, you pay your deductible, and your insurance company covers the rest.

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. However, MBI usually has high deductibles, so you will still have some out-of-pocket costs.

How does mechanical breakdown insurance work?

Mechanical breakdown insurance (MBI) is an optional add-on to your car insurance policy. It covers the cost of repairs to your vehicle's major mechanical components, such as the engine, transmission, electrical systems, and more, in the event of a mechanical failure that is not caused by an accident. It is similar to an extended warranty but typically costs less and offers broader coverage.

MBI is available for new or leased vehicles that are less than 15 months old, have less than 15,000 miles on the odometer, and the customer must be the first owner. The coverage can usually be renewed for up to 7 years or 100,000 miles, whichever comes first. Some companies may offer MBI for used cars as well, but it is generally harder to find.

When purchasing MBI, you will choose a deductible, typically ranging from $100 to $500. If a covered breakdown occurs, you pay the deductible, and the insurance company will cover the remaining cost of the repair. MBI does not cover routine maintenance, such as oil changes or tire rotations, or damage caused by accidents, collisions, or environmental factors.

Some of the well-known companies that offer MBI include GEICO, Progressive, Mercury Insurance, and Endurance.

MBI can provide peace of mind and help you save money on costly car repairs. However, it may not be worth it if you have an extended warranty or a certified pre-owned vehicle with similar protections. Ultimately, the decision to purchase MBI depends on factors such as the age and mileage of your car, the likelihood of a breakdown, and your financial situation.

What does mechanical breakdown insurance cover?

Mechanical breakdown insurance (MBI) is an optional, additional layer of protection for your vehicle that covers repairs not typically included in standard car insurance. It covers breakdowns related to mechanical failures, such as repairs to your powertrain, electrical systems, engine parts, and other major components.

MBI is useful if your manufacturer's warranty has expired or does not cover mechanical failures. It is also beneficial if you are still paying off a new car or have bought a used car that is out of warranty.

MBI covers:

• Major engine parts, such as pumps
• Electrical components
• Air conditioning, steering, and fuel systems (in some policies)

MBI does not cover:

• Routine maintenance and services, such as oil changes, spark plug replacement, and tire rotations
• Wear and tear on parts, such as belts, hoses, and brakes
• Towing or damage resulting from accidents, collisions, or environmental factors
• Repairs due to overheating, improper maintenance, alterations to the vehicle, or towing excessive weight
• Pre-existing conditions

What isn't covered by mechanical breakdown insurance?

Mechanical breakdown insurance (MBI) is an optional add-on to your car insurance policy. It covers the cost of repairs to your car's major systems and parts, such as the engine, transmission, electrical systems, and brakes, which are not covered by standard car insurance policies.

MBI does not cover everything, and there are several exclusions to this type of policy. Here is a detailed list of what is typically not covered by mechanical breakdown insurance:

• Routine maintenance and repairs: MBI does not cover routine maintenance expenses such as oil changes, tire rotations, tune-ups, suspension alignment, wheel balancing, fluid changes, and brake pad replacements. These are considered normal maintenance and are the responsibility of the vehicle owner.
• Wear and tear: Parts that are subject to wear and tear, such as belts, hoses, and brakes, are generally excluded from coverage. MBI covers unexpected breakdowns, not parts that naturally wear out over time.
• Towing: Towing services are not covered by MBI. However, you can add roadside assistance to your auto insurance policy, which may include towing services.
• Accidents and collisions: MBI does not cover damage resulting from accidents, collisions, or crashes. This type of damage would typically be covered by your comprehensive or collision insurance.
• Environmental factors: Damage caused by environmental factors, such as corrosion or natural disasters, is not covered by MBI.
• Improper maintenance: If a breakdown is caused by improper maintenance or misuse of the vehicle, MBI will not cover the repairs.
• Pre-existing issues: Repairs related to issues that existed before the MBI policy was activated are not covered.
• High-value vehicles: MBI may not be available for high-value vehicles, such as luxury or electric cars. Insurance companies may set limits on the value or age of the vehicle to qualify for MBI.
• Minor repairs: MBI typically has high deductibles, so minor repairs that cost less than the deductible may not be worth claiming.

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 repairs to your vehicle's essential components—such as the engine, transmission, electrical systems, and air conditioning—if your car breaks down due to a mechanical fault, rather than as a result of an accident or wear and tear. MBI does not cover routine maintenance services, such as oil changes, spark plug replacement, and tire rotations.

MBI can be a smart choice for those with newer vehicles who want to avoid paying out-of-pocket for unexpected repair costs, and for those who plan to keep their vehicles for a long time. However, it may not be worth it for every driver. If your vehicle has a good dependability score and low average repair costs, or if you have money set aside for potential repairs, you may be better off without MBI.

The cost of MBI varies depending on the type of car you have, your mileage, and your insurance provider, but it typically ranges from $30 to $100 per year. This is more affordable than an extended car warranty, which offers similar coverage but usually costs between $400 and $900 per year.

When deciding whether to purchase MBI, consider your vehicle's reliability and average repair costs. If your vehicle has a low dependability score or is known for having high repair costs, MBI could offer valuable peace of mind and save you money on repair bills. Additionally, if you are still paying off a new car and its warranty has expired, or if you buy a used car that is out of warranty, MBI could be a good option. On the other hand, if your vehicle is older, has high mileage, or you have a substantial emergency fund, MBI might not be necessary.

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