Car Repair Insurance & Mechanical Breakdown Insurance 101: Introduction
There are countless forms of auto insurance that can help cut down on your expenses if you get into a crash or if something goes wrong unexpectedly. Of course, the best kind of car insurance depends on many factors, including how you drive and the vehicle that you’re currently using. In this guide, we’re going to discuss car repair insurance, also known as mechanical breakdown insurance, or MBI coverage.
We’ll go over a range of different topics, including exactly what mechanical breakdown insurance is in the first place. We’ll also discuss the various situations that will be covered by mechanical breakdown insurance, and we’ll discuss how to buy it to ensure that you’ll get a payout for unexpected issues with your car at the cheapest rates possible.
Mechanical breakdown insurance coverage is basically a protection for car repairs, it is designed to kick in when your car ends up getting damaged due to wear and tear and you need car repairs. Unlike other forms of coverage, mechanical breakdown insurance won’t protect you if your car ends up getting into an accident, and that’s why this kind of car insurance coverage is largely optional.
In fact, some auto insurance companies don’t even offer car repair and mechanical breakdown insurance in the first place. While breakdowns can often get pricey, they don’t occur frequently enough that most drivers are concerned about getting specific car insurance coverage for them. This lack of demand results in fewer companies offering it as a coverage option.
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Before discussing how to make a claim on car mechanical breakdown insurance, you’ll need to know what you can get it to pay for in the first place.
As its name suggests, in most cases, mechanical breakdown insurance kicks in when your vehicle experiences an unexpected breakdown. This means that you didn’t have a prior warning that the issue existed and you suddenly ran into an issue that required major repairs to your vehicle.
This type of car insurance is designed to make up for things that are typically exclusions in a typical collision or comprehensive insurance policies, usually car repairs. For example, mechanical breakdown insurance can help you pay for car repairs for a brake replacement after your car suffers a brake failure.
Other vehicle systems that can be paid for by mechanical breakdown insurance include electrical system failures and transmission issues. In most cases, you’ll go ahead and pay for the auto repairs yourself before filing a claim with your insurance company.
After your auto insurance provider goes over your mechanical breakdown insurance claim, you’ll be reimbursed for the car repairs that you had to pay for.
That being said, there are still exceptions to what may be covered by mechanical breakdown insurance, especially in the case of neglect or older vehicles, so pay careful attention to clauses in your mechanical breakdown insurance policy.
Keep in mind that there are a few cases in which you won’t be able to file a claim for mechanical breakdown insurance coverage. For example, if you ended up damaging your vehicle through negligence, then you won’t be able to file a claim because that will be considered an exclusion.
An example of negligence would be forgetting to add motor oil to your engine and having it seize up. Because the results of this kind of mechanical breakdown would be easily avoidable, the insurance company doesn’t see it as its responsibility to pay out for the issues and damage that was caused due to it.
Another thing to consider is whether your vehicle is even valid for the best mechanical breakdown insurance policies. Older cars will typically not be accepted by companies offering car repair insurance because of the difficulty and inherent expense of procuring the parts for them when they break down.
People often compare mechanical breakdown insurance to getting an extended warranty on your vehicle, and there are a few similarities between them. The most similar thing is that they will both cover you when you run into an unexpected issue with your vehicle, but there are a few crucial differences.
The main thing that differentiates MBI coverage from extended warranties is that MBI tends to be a lot more affordable. For your average three-year extended warranty, you can expect to pay over $1000. This ends up being a lot more expensive than an MBI policy, which can come out to about $500 at maximum for 3 years, cost-wise.
However, another thing to consider is the deductible that you’ll have to pay for your mechanical breakdown coverage. Compared to an extended warranty, the deductible for an MBI policy tends to be far more expensive. You’ll typically have to pay about $250 out of pocket before your MBI insurance kicks in.
On the other hand, an extended warranty should have a much more affordable deductible, rarely going higher than about $100.
Finally, consider the value of your vehicle. High-value cars may not qualify for MBI insurance, but you may still be able to get an extended warranty for them. However, extended warranties for more expensive vehicles will also tend to be pricier.
You may also want to explore the cheapest cars to insure.
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The first thing that you’ll have to consider is the provider that you get your MBI policy from. The largest mechanical breakdown insurance provider in the United States is GEICO. While its reputation among customers is diverse, GEICO car insurance cost is among the cheapest car insurance companies you can find . If you want to get MBI from Geico, you’ll need to have less than 15,000 miles driven and your car has to be newer than 15 months old.
Other companies that offer car insurance for wear and tear (AKA MBI coverage) include Mercury, Progressive, and 21st Century, though the two latter companies have them underwritten by other providers.
Most MBI plans will last longer than an extended warranty, which will typically be capped at three years long.
The good thing about MBI is that it tends to be more affordable than other policies. If you’re wondering how much you can expect to pay for your MBI insurance, take a look at the following table and find the average cost for mechanical breakdown insurance for different vehicles:
| Car | Yearly cost of MBI |
|---|---|
| Toyota Camry | $30 |
| Ford Edge | $30 |
| BMW M3 | $30 |
Terrible company when it comes to honor their liability for other automobilists. Their driver crossed right light, destroyed my vehicle and liberty mutual denied my claim. First, for months they did not respond our emails. Than I called and their agent Danelle Bechard asked me to email her the details of the accident. another two months passed and again, no response from her. I called again and she was like, let me check your email and said, your claim is denied. She decided in few seconds after checking my email. In fact she never read my emails, just wanted to give me false hope. They could do investigation, they could read my emails, they could go through pictures but hey had already decided to deny my claim. They knew that I do not have a camera in my car or any witness. I am an Uber driver, I lost my car, and my job because of this accident. I had to borrow money from friends to purchase another car and I still owe money. Just because I cannot prove it, does not mean it did not happen. I could not do anything so just writing this review.
THE WORST INSURANCE COMPANY IN THE WORLD. Had the for 5 years, cost doubled neve had a claim of ticket, no service dept. They keep changing my policy without my approval. AND paid payment on line. They took a extra $4000 . Took a year to get them to admit there wrong. Customer service is like talking to 4 year old. I wouldn't trust this company with a dime. Now have a good HONEST company thats $489 cheaper on my auto policy alone. NEVER trust aaa..
I was hopeful about going with Travelers. My cousin oversees the building of large hotels (the W and Virgin in Nashville) and told me that is who he had used commercially. But after having roof damage from a storm, I have had a really bad experience. From the very first person I dealt with, it became quickly clear from my first dealings and was confirmed throughout the process, is how little they care about the people they insure and how they truly want to pay as little as possible. While my neighbors were having positive experiences with their insurance companies after the storm, mine has been terrible. I would highly recommend staying far away from Travelers Insurance and going with literally anyone else but them. —Jason McAnally
AAA is only good if you never have to use them. My daughter was borrowing my car and got hit by a hit-and-run driver who left the scene. AAA would not pay for damages on my car because she was not on the policy and I didn't have full coverage on my car I did have uninsured motorists but they still would not pay the claim so I have a wrecked car and now AAA is canceling my insurance What a waste of time and money. We reported to insurance board and still nothing was done. I'm going back to allstate, atleast they pay claims.
The quote they gave me was not the correct price. it turned out to be twice the amount they said. Plus the agency is in California 1500 miles away and I received bad customer service.
Not all those who wander are lost.
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