Mechanical Breakdown Insurance: What It Covers and How It Works
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Mechanical breakdown insurance or MBI is coverage you can add to your auto insurance policy to cover the cost of potential mechanical issues and failures. But what does mechanical breakdown insurance cover?
MBI can cover significant repair costs for major repairs. This guide explains MBI coverage details, costs, the difference from a typical extended warranty, and factors to consider when you are selecting a mechanical breakdown insurance policy.
What Is Mechanical Breakdown Insurance?
MBI is a type of car repair insurance that pays for mechanical failure, including problems with your transmission, engine, brakes, suspension, air conditioning and heating, and other more expensive breakdowns. While it does not cover the costs of traditional wear and tear or routine maintenance, it will cover unexpected mechanical breakdowns, which often result in high repair costs.
If you are purchasing a new or used vehicle, it helps to understand the types of car insurance available to you.
Mechanical Breakdown Insurance vs. Extended Warranties
Mechanical breakdown insurance differs from extended car warranties or vehicle service contracts in several notable ways:
MBI is typically for new or used cars with 15,000 miles or less while an extended warranty is usually for new or almost-new cars from a dealership.
You must pay for an extended warranty upfront while MBI offers a "pay-as-you-go" option.
MBI is significantly less expensive than an extended warranty, about $100 per year, as opposed to several thousand dollars in total costs for an extended warranty.
If you are debating mechanical breakdown insurance vs. extended warranty, you should examine the fine print to determine what your mechanical breakdown insurance or extended warranty will cover and how much it will cost.
What Does Mechanical Breakdown Insurance Cover?
Mechanical breakdown insurance typically covers the following major repairs:
Engine
Brakes
Air conditioning
Heating
Exhaust
Transmission
Drivetrain
Electrical system
However, it will not cover issues such as oil changes, routine maintenance, filters, tires, spark plugs, fluids, or regular wear-and-tear items. You can also look into full coverage insurance.
Eligibility and Cost of Mechanical Breakdown Insurance
As a general rule, your car must be new or have a maximum of 15,000 miles to be eligible for mechanical breakdown insurance. Your insurance company might also have specific rules regarding whether your car is eligible for MBI, so it pays to research and ask about each company's mechanical breakdown insurance coverage options.
The good news is that mechanical breakdown insurance is known for its affordability, averaging about $100 per year.
Benefits and Drawbacks of Mechanical Breakdown Insurance
You might be wondering, "Is mechanical breakdown insurance worth it?" As with any insurance, there are pluses and minuses when it comes to MBI.
The pros include:
It covers the cost of repairs to some major parts and systems and often goes beyond what a traditional manufacturer warranty offers.
Mechanical breakdown insurance is relatively inexpensive and can be transferred if you sell your car. You also do not have to make a significant upfront payment.
You can choose where to get a repair estimate and where to get your car repaired.
You can cancel mechanical breakdown insurance at any time.
The cons of MBI include:
It will not cover regular maintenance, roadside assistance, or wear and tear on your vehicle, so you will still need to pay for that out of pocket. It also does not cover damages from car accidents.
MBI can entail a relatively high deductible.
You may pay more in the long run if your vehicle has no significant issues.
It is important to remember that mechanical breakdown insurance does not replace regular or comprehensive insurance.
Top Mechanical Breakdown Insurance Providers
The best mechanical breakdown insurance will vary depending on your vehicle and needs. Some of the top-rated MBI providers include Allstate, Mercury, AAA, American Family, and Geico. As with any insurance product, it is a good idea to research the best options for your current driving situation since insurance offers change regularly.
Is Mechanical Breakdown Insurance Worth It?
When it comes to insurance, you usually pay more in premiums than you claim for repairs. However, if you do end up needing MBI, it can be a great value. If you know that your car tends to break down and involves costly repairs, a mechanical breakdown insurance policy might be your best friend. Some drivers also love the peace of mind that comes with having added car insurance.
Find the Right Car Insurance for Comprehensive Protection
Comprehensive coverage can support your current and future driving needs. If your auto insurance premiums are currently high or you are looking for new insurance options, you can get a free custom auto insurance quote from EverQuote. This lets you compare car insurance quotes side by side to find the features you want and need.
Check out EverQuote today to find the right car insurance for comprehensive protection.