Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jan 22, 2021

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The Truth in a Nutshell:

  • Mechanical breakdown insurance can cover many different repairs, including transmission, brakes, and suspension.
  • Mechanical breakdown insurance doesn’t cover routine maintenance like tire changes.
  • Rates for mechanical breakdown insurance are determined by the vehicle you drive as well as other factors.

Mechanical breakdown insurance is something that may be offered to you upon purchasing a new vehicle. While most auto insurance policies cover repairs caused by accidents, mechanical breakdown insurance can take care of more everything else. While liability insurance is usually required, mechanical breakdown insurance isn’t. What does liability insurance cover, and what is covered by mechanical breakdown insurance that isn’t part of the required policy? While liability covers damage and injury you cause to another, mechanical breakdown insurance is for your car.

For example, if you are having transmission issues that weren’t caused by a recent collision, then mechanical breakdown insurance will likely cover the repairs. That being said, it’s important to be aware of how much your particular policy will cover. Also, there are many repairs that won’t be covered by MBI, including tire changes and suspension alignment.

In our piece, we will cover everything about mechanical breakdown insurance, including mechanical breakdown insurance car insurance rates, and more. Finding the best mechanical breakdown insurance can be easy. To compare rates from the best companies in your area, be sure to use our comparison tool.

What does mechanical breakdown insurance cover?

The things that mechanical breakdown insurance covers can greatly depend on where you are getting insurance. Many times, an auto insurance company will offer you different MBI options, so it’s important that you determine your exact needs for mechanical breakdown insurance car insurance beforehand.

All that being said, there are some common this that MBI policies across the board cover, including engine part replacements, transmission repairs, faulty brakes, electrical system problems, and much more. Pretty much any major repair that isn’t covered under a basic policy may be covered by an MBI policy. You can even get mechanical breakdown insurance for used cars.

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What doesn’t mechanical breakdown insurance cover?

While mechanical breakdown insurance will likely cover large repairs, routine maintenance costs usually have to be covered by the driver themselves. This can include oil changes, new filters, spark plugs, new brakes, and much more.

Damage caused by an accident isn’t covered by an MBI policy either. Those types of damages should be covered by your personal auto insurance policy, depending on the surrounding circumstances.

How much is mechanical breakdown insurance?

Affordable mechanical breakdown insurance car insurance is out there. As with auto insurance policies, the cost of mechanical breakdown insurance can differ based on many factors. The vehicle you drive, its mileage, and more can all be factored into your monthly MBI payment.

On average, MBI policies can be anywhere from $30 to $100 per year. A deductible will also have to be paid anytime you a claim is submitted and repairs are made. The cost of your deductible can vary based on the situation.

If you are wondering how to get cheap car insurance, there are many things you can do, including asking about discounts. Cheap mechanical breakdown insurance car insurance quotes can also be easily found.

Mechanical Breakdown Insurance vs Extended Warranty

Mechanical breakdown insurance is similar to an extended warranty, however, MBI can cover more expensive repairs. Additionally, you can pay as you go with MBI, while you usually have to pay upfront for an extended warranty.

Extended warranties are usually only available for new cars with some exceptions. MBI, however, is usually purchased for used cars that have less than 15K miles.

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Should I buy mechanical breakdown car insurance?

If you are looking for some peace of mind, then mechanical breakdown insurance might be a good option. Many automobile repairs can be quite expensive, so many people opt to pay extra on a monthly bill to avoid a huge one in the future. Common repairs and their costs can be seen in the chart below.

Common Repairs and Their Costs
Type of RepairAverage Costs
Transmission$1,000-$3,400
Exhaust pipe replacement$800
Air conditioning repair$200-$800
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Additionally, CarMD provides information on average automobile repair costs by state.

Mechanical breakdown insurance is offered by many top companies. To compare rates from companies in your area, enter your ZIP code into our comparison tool.

References: 

  1. https://www.carmd.com/wp/vehicle-health-index-introduction/2017-carmd-state-index/