Mechanical Breakdown Insurance: Everything You Need to Know

If you own a car, it’s important to have insurance to protect yourself and your vehicle. While most people are aware of car insurance, there’s another type of coverage that you may not be familiar with: mechanical breakdown insurance (MBI). In this article, we’ll take a closer look at MBI, what it covers, and whether it’s worth the cost.

What is Mechanical Breakdown Insurance?

MBI is a type of insurance that covers the cost of repairs to your vehicle if it experiences a mechanical breakdown. This type of breakdown is different than a collision or other types of damage covered by traditional car insurance. MBI is typically offered as an optional coverage by insurance companies and can be added to your policy for an additional fee.

When you purchase MBI, your insurance company will pay for the cost of covered repairs, minus your deductible. The amount of coverage provided by MBI varies depending on your policy, but it typically covers repairs related to your car’s engine, transmission, and other major mechanical components. Some policies may even cover the cost of a rental car while your vehicle is being repaired.

What Does MBI Cover?

MBI covers a range of mechanical issues that can occur with your vehicle. Some of the most common repairs covered by MBI include:

It’s important to note that not all repairs are covered by MBI. Most policies have specific exclusions and limitations, so be sure to read your policy carefully to understand what is and isn’t covered.

How Much Does MBI Cost?

The cost of MBI varies depending on a number of factors, including your car’s make and model, the age of the vehicle, and your driving history. On average, MBI costs around $50 to $100 per year, but this can vary significantly depending on your situation. Some insurance companies may offer different levels of coverage at varying prices.

While MBI may seem like an additional expense, it can be a worthwhile investment if you’re concerned about the cost of unexpected repairs. Without MBI, you could be on the hook for costly repairs that can easily run into the thousands of dollars.

Is MBI Worth the Cost?

Whether or not MBI is worth the cost depends on your individual situation. If you have an older car with a lot of miles, MBI may provide peace of mind if you’re concerned about the cost of potential repairs. On the other hand, if you have a newer car that’s covered by a manufacturer’s warranty or is otherwise unlikely to experience major mechanical issues, MBI may not be necessary.

It’s also important to consider the cost of MBI compared to the potential cost of repairs. If you’re paying a high premium for MBI but your car is unlikely to experience major mechanical issues, you may be better off paying for repairs out of pocket as needed.

FAQs

Does MBI cover regular maintenance?

No, MBI does not cover regular maintenance like oil changes or tune-ups. It only covers repairs related to mechanical breakdowns.

Can I purchase MBI separately from my car insurance?

No, MBI is typically offered as an optional coverage that can be added to your existing car insurance policy.

What’s the difference between MBI and a manufacturer’s warranty?

A manufacturer’s warranty typically covers repairs to your vehicle for a set period of time, but usually only covers defects in materials or workmanship. MBI, on the other hand, covers repairs related to mechanical breakdowns, even if they’re not related to a defect in materials or workmanship.

Is MBI required by law?

No, MBI is not required by law. However, some lenders may require you to purchase MBI as a condition of financing a car loan.

How do I know if a repair is covered by MBI?

Your policy will outline what repairs are covered, as well as any exclusions or limitations. If you’re unsure whether a repair is covered, contact your insurance company or review your policy.

Can I cancel my MBI policy?

Yes, you can cancel your MBI policy at any time. However, it’s important to note that you may not be eligible for a refund of any premiums paid.

Conclusion

MBI can provide valuable protection for your vehicle if you’re concerned about the cost of unexpected repairs. While it’s not necessary for everyone, it’s worth considering if you have an older car or are worried about the potential cost of repairs. As with any insurance product, it’s important to read your policy carefully and understand what is and isn’t covered before purchasing MBI.