Mechanical breakdown insurance is a type of insurance coverage that pays for repairs to your vehicle if it breaks down or fails in some way.

How Mechanical Breakdown Insurance Works

Mechanical breakdown insurance is a contract that takes care of the expense of fixes, substitutions, and different administrations to your vehicle because of disappointment or deformity. This kind of inclusion can decrease your personal spending on vehicle fixes and give a sort of inclusion you for the most part don’t get with a standard collision protection strategy.

  • Alternate name: Car repair insurance
  • Acronym: MBI

Mechanical breakdown protection isn’t intended to pay for harms from mishaps. All things being equal, it covers imperfections or disappointments to your vehicle’s parts and frameworks. Contingent upon your approach, it could cover more than whatever’s particularly recorded in your vendor’s vehicle guarantee.

This kind of inclusion typically is just accessible for more current vehicles and those under a specific mileage. For instance, Geico, which is one supplier of mechanical breakdown insurance, just offers new strategies for vehicles more youthful than 15 months with less than 15,000 miles (in spite of the fact that you can restore your contract until your vehicle is seven years of age or has up to 100,000 miles).

Mechanical Breakdown Insurance Example

Assume you’re driving home from the library and notice smoke surging free from the hood of your vehicle. You bought the new vehicle generally as of late, so you realize it ought not be having mechanical issues yet. You take the vehicle to your repairman and learn it has a section that should be supplanted.

Under typical conditions, there would be two prospects. To start with, on the off chance that your vehicle were still under guarantee, the vendor would trade the part for you (accepting it’s covered under the guarantee). However, on the off chance that that wasn’t true, you’d need to pay for the maintenance using cash on hand.

Be that as it may, assuming that you have mechanical breakdown insurance, your contract ought to take care of the expense of the maintenance, as well as work costs, up to your protection limit. The main personal cost you’ll be left with is your deductible.

Most vehicle protection inclusions are intended to pay for harm to your vehicle (or another person’s) because of an outer variable. Risk protection pays for harm to another person’s vehicle when you’re to blame for a mishap, while impact and complete inclusion pay for harm to your own vehicle brought about by a mishap or something different.

What Does Mechanical Breakdown Insurance Cover?

Mechanical breakdown protection covers disappointments and imperfections of your vehicle’s parts and frameworks. Your approach, all things considered, may come in one of two structures. A few strategies will unequivocally list the parts and frameworks inside your vehicle that are covered. Different strategies might cover all parts and frameworks aside from those explicitly prohibited.

Instances of parts and frameworks that may be covered by your mechanical breakdown insurance contract include:

  • Engine
  • Transmission
  • Drive axle assembly
  • Heating and cooling
  • Electrical
  • Steering
  • Brakes
  • Fuel delivery
  • Suspension

Similarly as it’s critical to understand what mechanical breakdown protection covers, you ought to likewise understand what it doesn’t cover.

Mechanical breakdown protection normally doesn’t cover general mileage to your vehicle. It will take care of the expense of fixing the brakes on your new vehicle on the off chance that they’re flawed, yet assuming you’re supplanting your brakes following quite a long while of purpose, they most likely will not be covered.

Mechanical breakdown protection likewise won’t cover harms brought about by mishaps. Assuming you’re engaged with a mishap or severe weather conditions harms your vehicle, the impact and extensive inclusion in your arrangement ought to pay for it. In any case, in that situation, mechanical breakdown protection will not make a difference since covering imperfections and disappointments to your vehicle is just planned.

What Is the Average Cost of Mechanical Breakdown Insurance?

The expense of mechanical breakdown insurance relies upon the insurance agency you sign your contract with. These strategies will more often than not be entirely reasonable and have sticker prices somewhere in the range of $50 and $100 each year.

Obviously, your insurance installment isn’t the main cost you’ll be on the snare for. On the off chance that you need to record a case, you likewise need to pay your deductible before your insurance agency will pay until the end of the harms, up to your protection limits. Deductibles for mechanical breakdown protection will generally go from $100 to $500, with a typical deductible of about $250.

MBI vs. Extended Warranty: What’s the Difference?


Usually offered by insurance companies

Coverage up to a particular vehicle age or mileage

Requires a small annual premium

Get your car repaired anywhere


Usually offered by auto dealers or third parties

Coverage for a certain number of years

Requires a large upfront payment

Get your car repaired at approved locations

A maintenance agreement
A lengthy auto guarantee is a help contract that expands the maker’s guarantee inclusion for the maintenance or substitution of parts. Getting one typically delays the length of inclusion given by a vehicle’s production line guarantee, yet it’s not generally worth the price.More >
is intended to safeguard your vehicle for a specific number of years. Not at all like your fundamental vehicle guarantee, the service contract doesn’t come from the vehicle maker — it’s presented by an outsider.

Mechanical breakdown protection and maintenance agreements share a few things practically speaking. To begin with, both by and large just give inclusion to a limited time frame. Mechanical breakdown protection might cover vehicles up to a particular age or mileage. Service contract inclusion, then again, covers a specific measure of years after you buy the strategy. Therefore, it could cover more seasoned vehicles.

Notwithstanding, these approaches have a few significant contrasts. While mechanical breakdown insurance requires a little installment when you pay your collision protection installment, a service contract frequently requires a huge forthright installment.

Mechanical breakdown protection generally permits you to get your vehicle fixed at a technician of your decision. However, on account of service contracts, you might need to finish your fixes at the seller or with an endorsed technician.

Do I Need Mechanical Breakdown Insurance?

Mechanical breakdown protection can get a good deal on vehicle fixes. The expense of mechanical breakdown protection can be essentially as low as $50 to $100 each year. In the mean time, the expense of another transmission or motor can cost thousands. It’s worth it for the possibility saving yourself large chunk of change.

Notwithstanding, mechanical breakdown protection isn’t ideal for everybody. In the first place, numerous protection transporters just give this kind of inclusion to more current vehicles or those with low mileage. Subsequently, assuming that you have a more seasoned vehicle or one with high mileage, you may not have the option to pursue mechanical breakdown protection.

Mechanical breakdown protection likewise may not be important for somebody with an exhaustive vehicle guarantee.

In the event that you have a vehicle guarantee that covers all parts and frameworks, you presumably don’t require mechanical breakdown protection.