Mechanical Breakdown Insurance: What It Covers

A mechanical breakdown insurance (MBI) policy is the ideal option for you if you are unable to pay the cost of repairs for your car. If you have paid for any major mechanical problems with your car, then you know how expensive it is. However, by getting a mechanical breakdown insurance policy, the cost of repairs for your car will be covered.

Mechanical Breakdown Insurance: What It Covers

The general auto insurance policy covers a variety of items. However, it doesn’t cover the cost of your car’s repairs, which aren’t caused by covered damage. This is where a mechanical breakdown insurance policy comes in handy, as this policy covers the cost of repairs for any major mechanical problems. You can purchase this type of insurance policy as an add-on to your standard auto insurance policy.

What is Mechanical Breakdown Insurance?

Mechanical breakdown insurance, also known as car repair insurance, pays the cost of repair for any major mechanical problems. It covers the cost of repairs to your car. It also acts as an additional layer of protection for your car insurance policy. With a this insurance policy, you can pay less for your car repairs.

How Does Mechanical Breakdown Insurance Work?

Mechanical breakdown insurance is like additional coverage for your auto insurance policy. It works just like your car insurance policy by covering the cost of repairs to your vehicle. However, it doesn’t cover the cost of repairs after a car accident. This insurance policy is available for both new cars and old cars.

If your car is damaged, you can contact your car insurance company to file a claim.  To get an estimate of the cost of repair, you will need to visit the mechanic. The payout for car repairs will be sent to you as soon as your claim is approved. Some insurers enable the drivers to visit the mechanic of their choice.

After purchasing MBI, you can renew it for up to 100,000 miles. The repairs to all the mechanical parts of the car are covered after paying the deductible.

Is Mechanical Breakdown Insurance Worth It?

If the cost of repairs for your car is expensive, then mechanical breakdown insurance is worth it. This insurance policy protects you from any unforeseen repair bill. If you are unable to pay for your car repair costs out of your pocket, then car repairs insurance is the ideal option for you.

Furthermore, if you have an old car that is likely to break down at any moment, then you can consider buying mechanical breakdown insurance. Note that you will have to pay a deductible for your repairs after filing a claim.

What Does Mechanical Breakdown Insurance Cover?

Each auto insurance company has its own coverage for car repairs. However, most mechanical breakdown insurance policies cover:

  • Engine
  • Steerig
  • Air conditioning and heating.
  • Brakes
  • Internal computer and GPS.
  • Exhaust
  • Drivetrain
  • Transmission
  • Drive axle.
  • Fuel systems.
  • Suspension systems.
  • Convenience technology.
  • Electrical systems.
  • Safety technology.

The items listed above are covered by car repair insurance. It only covers the internal systems and components of the car. However, it doesn’t cover any damage caused by another vehicle, wear and tear, or the maintenance of the car.

What It Doesn’t Cover?

MBI doesn’t cover a variety of items, which include:

  • Tuneups
  • Oil changes.
  • Adding fluids.
  • Corrosion and rust.
  • Damage caused by a car accident.
  • Car parts covered by your car warranty.
  • Non-mechanical items such as molding and vehicle trim.
  • Pre-existing damage before you purchase the insurance policy.

The abovementioned are not covered by car repair insurance. These items are covered by the regular auto insurance policy.

Mechanical Breakdown Insurance vs. Extended Warranty

Mechanical breakdown insurance and extended warranty are quite similar, with each covering the cost of car repairs. However, they are different in some ways.

MBI has a deductible, while the extended warranty doesn’t have a deductible. However, it is more expensive to get an extended warranty than mechanical breakdown insurance. In addition, instead of paying in installments, you will be required to pay the full cost of the extended warranties because they are not another type of insurance.

Furthermore, one of the few things that can prevent you from getting an extended warranty is the age of your car. The types of cars that can qualify for an extended warranty are new cars and a few lightly used vehicles. The only way you will be able to buy MBI for a used car is if the car is under 15,000 miles.

How Much Does Mechanical Breakdown Insurance Cost?

Mechanical breakdown insurance is more affordable, and it is offered by several auto insurance companies as an add-on coverage. The price of MBI policy varies by company; however, you can purchase this insurance policy for as little as $30.

Furthermore, you can pay more for car repair insurance if you buy it alone rather than including it as an additional coverage for your car insurance policy. One of the factors that can impact the cost of your car repair insurance is the type of car you drive.

To get a better deal, it is advisable to shop around for different auto insurance companies, compare quotes, and then find the insurers who meet your needs and budget.

How to Get Mechanical Breakdown Insurance

You can purchase MBI from an auto insurance company that offers it as an add-on to your car insurance policy. You can only buy a MBI policy when you are buying an auto insurance policy, and it can be canceled at any time you wish.

It only covers internal systems and components of the car, and it won’t cover the maintenance of your car.

Who Offers Car Repair Insurance?

Several auto insurance companies provide car repair insurance, and they include:

  • Mercury
  • American Family
  • Allstate
  • Geico
  • AAA
  • Progressive

These are the auto insurance companies that offer MBI.

Is My Car Eligible For Car Repair Insurance?

The auto insurance company decides if your car is eligible for mechanical breakdown insurance based on the vehicle’s mileage and age. The auto insurer might have other eligibility requirements, and they also have certain cars that are either eligible for coverage or excluded from coverage.


Do I need car repair insurance If I already have car repair insurance?

If your car has a warranty, you might not need to purchase car repair insurance. Although the items covered depend on your MBI policy, they all cover the same things.

Which insurance company is the best for car repair insurance?

There are several insurance companies that you can buy MBI from. Each company has its own merits and demerits, and their price varies. To get the best deal, you can shop around and compare quotes from different auto insurance companies to find the one that suits your budget.

Does MBI cover car accidents?

Mechanical breakdown insurance doesn’t cover damage caused by car accidents. The only way you can cover this damage is by adding collision and comprehensive insurance to your car insurance policy. It covers damages caused by vandalism, floods, fire, hail, and car accidents.

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