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Car insurance protects your vehicle if you have an accident, but if your car breaks down unexpectedly, you could face an expensive repair bill. And while limited and extended warranties can cover the cost of parts and some repairs, there are restrictions and coverage doesn’t always last forever.
For older cars with issues or drivers who want extra peace of mind, mechanical breakdown coverage, commonly referred to as car repair insurance, can help cover the cost of the unexpected.
Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
Mechanical breakdown coverage, or car repair insurance, covers the costs of breakdown unrelated to an accident — like the ones that seem to pop up as soon as your warranty runs out. It’s available for new and leased vehicles with low mileage and is often renewable until your car reaches a certain age or number of miles.
Breakdown insurance covers all parts and systems on your vehicle, not just the specific list of items covered by most manufacturer warranties.
Mechanical breakdown coverage works similarly to a standard car insurance policy. You’ll purchase coverage, file a claim, pay a deductible, and get reimbursed for the money you’ve spent on repairs or have the repair paid for directly.
Unlike manufacturer warranties where you pay a lump sum for coverage, you’ll pay a monthly premium for mechanical breakdown coverage.
Some major insurance providers offer mechanical breakdown coverage as an extra on standard insurance policies. Contact your provider and ask for more details on how to add it to your policy.
You can also get mechanical breakdown coverage from third party companies like:
You can file a car repair insurance claim the same way you’d file a car insurance claim. Some providers require you to make a phone call, while others may allow you to file online. Once your claim has been filed, your provider will likely contact you with steps on how to proceed.
If you need to have repairs made to your car, here’s what you’ll need to do:
Most drivers won’t have a need for breakdown coverage. Policies tend to have a long list of exclusions, and many third party companies are plagued with terrible customer support ratings due to denied claims.
Mechanical breakdown coverage can be valuable on older vehicles that are more prone to breakdowns and for drivers who don’t have an emergency savings fund to pay for unexpected repairs.
It’s usually cheaper than an extended manufacturer warranty and is paid for monthly, making it more affordable. Prices vary depending on the provider and the vehicle you drive, but usually costs between $100 and $300 per year.
Let’s say you drive a 2015 Honda Accord that no longer has a valid manufacturer warranty. You’re out running errands and suddenly your transmission fails, leaving you to foot the bill to replace it. With mechanical breakdown coverage, you’d pay for the deductible and increased premiums for a total of $400. Without MBI coverage, you’ll pay for repairs out of pocket for a total of $5,000.
Premiums for 1 year | Deductible | Transmission parts and labor | Your total cost | |
---|---|---|---|---|
Without MBI coverage | $0 | $0 | $5,000 | $5,000 |
With MBI coverage | $150 | $250 | $0 | $400 |
Mechanical breakdown coverage is similar to a manufacturer warranty but with less coverage restrictions. Many MBI policies require you to pay a deductible, so if you have a valid warranty, you may want to see if it covers the repair first to avoid paying the deductible.
If you can’t afford to pay out of pocket for repairs or just want extra protection, mechanical breakdown coverage might be right for you. It covers a wide range of situations that car insurance and manufacturer warranties won’t, so it can help you avoid footing the bill for expensive repairs.
Compare your options to find the mechanical breakdown insurance that suits your needs.
Compare car insurance companies near you.
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