What is mechanical breakdown insurance (MBI)?

A lot of times when you purchase a new or used car, the dealership may give you an option to buy an extended warranty or mechanical breakdown insurance. In this article we explore a little bit deeper into how this coverage can benefit you.

Mechanical Warranty;

What is a mechanical warranty? A mechanical warranty is an extended warranty. It’s offered by your car dealership & applies to mechanical breakdowns or parts. It also offered for a number of years. Usually depending on the plan you decide to go with. It also has to do with how much you want to spend.

Mechanical Warranty and Mechanical Breakdown Insurance;

You have more than one option when it comes to purchasing coverage against a mechanical breakdown. There are some advantages to purchasing a mechanical warranty. It depends on how long you are going to own your car. Or possibly even if you do not plan to own it for very long but, want to sell it back in a few years. Mechanical warranties are usually available through the car dealer. You can also buy mechanical breakdown insurance through a private insurance company. If this interests you, please reach out to one of our agents for a fast free quote. 

What Is Mechanical Breakdown Insurance?

Mechanical Breakdown Insurance is coverage that pays for vehicle repairs not related to an accident that can be bought through your car insurance company, versus an extended warranty through the car dealership.

Much like an extended warranty, mechanical breakdown insurance coverage will pay for repairs to an automobile above the manufacturer’s warranty. It can also provide additional coverage as a part of the insurance package you choose. This is depending on the insurance company (please ask an agent). MBI can be added as an endorsement to your car insurance coverage. Mechanical breakdown insurance policies may provide certain advantages over an extended warranty. This would be on a car because it is offered through an auto insurance company and is policed by the insurance industry for standards & claims. 

Reasons to Buy MBI Coverage Instead of an Extended Warranty

There’s a ton of reasons you may want to consider mechanical breakdown insurance coverage versus and extended warranty. Below we go over a few;

• There’s a good chance it includes more parts & systems than most dealership warranties
• More than likely it’s going to cost less than at the dealer
• Get your car fixed wherever you want
• Transferable to a new vehicle owner if you sell your car.
• Don’t pay a lump sum payment upfront & pay interest if the cost gets bundled into your auto loan

What is Covered;

• Engine parts, ex: oil pump, water pump
• Drivetrain
• Transmission
• Exhaust
• Brakes
• Electrical components ex: alternator

Some mechanical breakdown coverage offers protection for:

• steering
• air conditioning
• fuel system

What Isn’t Covered;

• Tune-ups
• Suspension alignment
• Wheel balancing
• Filters
• Lubrication
• Coolant and fluids
• Spark plugs
• Brake pads and linings
• Brake shoes
• Tires

If you have additional questions regarding MBI coverage, reach out to one of our agents. We’re nice people and we have great rates!