Mechanical Breakdown Insurance (MBI) Defined (2024)

Mechanical breakdown coverage (MBI) is optional auto insurance that covers repairs. You can add auto breakdown insurance to your policy to help with major systems, like your car’s engine and transmission.

In addition, an MBI policy covers things on your vehicle not covered by a standard auto insurance policy.

Mechanical breakdown insurance functions like an extended warranty, though MBI offers more robust coverage. As a result, mechanical breakdown insurance is also known as car repair coverage, vehicle breakdown insurance, mechanical failure insurance, or mechanical repair insurance.

MBI allows you to file a claim with your insurance company if your vehicle has a significant system issue. Learn more about how to file a car insurance claim.

If your insurance company approves your claim, you can choose a mechanic to do the work and pay your deductible. Your insurance company will pay the remaining repair costs.

What does mechanical breakdown insurance cover?

Mechanical breakdown protection covers various system issues, but there are still some things you’ll have to pay for out of pocket.

What is Covered Under Mechanical Breakdown Insurance (MBI)

What is Covered	What's Not Covered
Engine	Air filters
Drivetrain and powersystems	Spark plugs
Brakes	Brake pads
Transmission	Tires
Exhaust systems	Some fluids, including coolant, wiper fluid, etc.

MBI covers issues with your vehicle’s engine, drivetrain, transmission, brakes, exhaust, and power system. All you need to do is report issues to your insurance company and file a claim to resolve them. If you’re wondering whether auto insurance covers transmission repair, mechanical breakdown insurance is the answer.

Depending on the mechanical breakdown car insurance coverage you purchase, your policy may also cover steering, air conditioning, and your vehicle’s fuel system.

Unfortunately, MBI doesn’t cover filters, spark plugs, brake pads, tires, fluids like coolant and windshield washer fluid, or repairs considered normal vehicle maintenance. 

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What’s the difference between mechanical breakdown insurance vs. an extended warranty?

Mechanical breakdown insurance coverage and extended warranties work similarly, but MBI coverage is often more robust than a vehicle warranty.

Mechanical Breakdown Insurance vs. Extended Warranty

Summary	Mechanical Breakdown Insurance Stats	Extended Warranty Stats
Average Cost	Up to $100 per Year	Between $1,000 and $3,000
Coverage Limits by Miles or Years	Up to 7 years or Up to 100,000	Warranty Lasts for 2 to 7 Years
Deductible	$250 to $500	$0 to $250
Payments	Pay Per Month	Must Be Paid in Full
Vehicle Eligibility	New Cars and Used Cars with 15,000 miles or less	New Cars and Select Used Cars from the Dealership

A mechanical breakdown protection plan is often less expensive, and you can purchase coverage through your existing insurance company. If you search for car breakdown insurance for older cars, MBI coverage may work, while an extended warranty wouldn’t.

An extended warranty often costs anywhere from $1,000 to $3,000, and you must pay for the coverage upfront. However, MBI coverage allows you to pay as you go, and you can drop the coverage if you decide it’s not worth the investment.

If you have an MBI rather than an extended warranty, you’ll probably pay a higher deductible whenever you file a claim.

How much does mechanical breakdown car insurance cost?

So, how much is MBI insurance? On average, mechanical breakdown insurance costs around $100 annually or $8 per month. MBI coverage is typically only available for new or relatively new vehicles.

Mechanical breakdown insurance quotes ultimately depends on your vehicle’s age, make, model, value, and policy length. If you have a car that costs more to repair — like a luxury car or electric vehicle — your MBI insurance costs will be higher than average.

Is mechanical breakdown auto insurance worth it?

Wondering if mechanical repair coverage is worth it? Mechanical breakdown insurance may be a good option, depending on the scenario. However, the vehicle repair costs must exceed your policy’s cost and car insurance deductible for it to make sense to purchase MBI. Unfortunately, you don’t know whether you’ll need the coverage until it’s too late.

A mechanical breakdown insurance policy is worth it if you have a major system failure, like a blown transmission. On average, the cost of repairing a transmission is anywhere from $2,200 to $5,000. Compared to this cost, paying $8 per month and $250 for your deductible would be a much better deal.

While MBI could save you a lot of money if your car has a major breakdown issue, you don’t know whether it’ll happen before purchasing the coverage. So if MBI coverage will help your peace of mind, it could be a wise investment.

Things to Consider Before Getting MBI

If you’re considering MBI, consider a few things beforehand. Research how likely your car will need major repairs on the engine, transmission, or other parts before 100,000 miles.

Additionally, consider these questions before buying coverage:

• What does MBI coverage exclude?
• How much is the MBI deductible? 
• How do I file a claim with my MBI?
• Is the MBI coverage transferable?
• Do I have to pay for anything upfront?
• What does the company consider an authorized repair shop?
• How do MBI renewals work?

You’ll learn quickly which mechanical breakdown insurance options will work best for you. As you research, inquire about overall costs, specific coverage exclusions, and anything else that seems important to you.

Which company offers the best mechanical breakdown insurance?

Finding the best mechanical breakdown insurance in your area requires research. However, you can our online comparison tool below to get free quotes for mechanical breakdown insurance from different companies.

This way, you can see how much each company charges and determine whether any options in your city will work for you.

Some of the best mechanical breakdown insurance companies include:

• Allstate auto insurance
• American Family auto insurance
• Geico auto insurance
• AAA car insurance
• Mercury auto insurance

If you already have an insurance policy with one of the companies listed above, you can call and speak with a representative to see how much it would cost to add MBI to your current insurance plan.

If you have an auto insurance policy with a different company, call your insurance company and see if mechanical breakdown coverage is available.

Mechanical breakdown insurance policies may differ from one company to another. So it’s a good idea to compare breakdown insurance options and prices from several companies before making final decisions on MBI.

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Do I need insurance for a broken-down car?

There are positives and negatives to owning a mechanical breakdown insurance policy. Some of the benefits of MBI coverage include:

• MBI coverage may help with more parts and issues than a standard extended warranty option.
• Mechanical breakdown insurance often costs less than an extended warranty through a dealership.
• With MBI coverage, you can choose where to take your vehicle for repairs.
• If you sell your vehicle, the new owner can continue paying for the same MBI coverage.
• You can cancel mechanical breakdown insurance at any time to avoid wasting money.
• You don’t have to make any large, lump-sum payments for MBI coverage.

MBI coverage will raise your monthly auto insurance rates, but the average cost for mechanical breakdown insurance is just $8 per month. So if you drive a new car, it may be worth investing in MBI coverage to ensure you won’t have to pay for major repairs out of pocket.

Is there a way to know whether my car will break down?

You can consider a few things to estimate whether you’ll need MBI insurance. First, assess how long you’ll likely keep your vehicle. If you plan to keep it for five years or more, you may want to invest in MBI. Newer cars are much less likely to break down.

Remember that certain insurance companies will only cover a vehicle with MBI up to a certain mileage. For example, Geico mechanical breakdown insurance reviews say the company only covers vehicles up to 100,000 miles. So if you’re near that mileage before purchasing the coverage, there may not be a point in getting mechanical breakdown coverage.

You should also assess your vehicle’s reliability when determining whether you need MBI. For example, if you have a car that tends to break down more easily, an MBI plan would likely be in your best interest. You can research your vehicle online to learn about its reliability if you aren’t sure.

Lastly, remember that mechanical breakdown coverage won’t cover minor repairs. Since minor repairs are more likely, you may find that MBI isn’t worth the money, as it won’t help with the things happening most often with your vehicle.

What You Need to Know About Mechanical Breakdown Insurance

You may need mechanical breakdown insurance on a new car, especially if your extended warranty has expired. However, you may not need mechanical breakdown insurance for used cars, especially if it’s a certified, pre-owned vehicle with warranty coverage.

Whether you should purchase MBI coverage depends on your car’s age, where you live, what vehicle you drive, and more.

You may live in an area like California, where you can’t purchase an extended warranty. Mechanical breakdown insurance in California can be a helpful and wise alternative if that’s the case.

The best option for mechanical breakdown coverage helps you feel safe on the road and pays for itself after a major repair. If you’re worried about wasting money, MBI coverage may not be for you. Still, mechanical breakdown insurance may be a great option if you want peace of mind and don’t mind spending $8 every month.

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