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 |
I just had an appalling experience trying to cancel my Mom's AAA insurance after she developed dementia and stopped driving. They threw up every barrier to what should have been a simple process, and even refused to accept my Power of Attorney documents electronically. The representative was extremely rude and copped an attitude. I think they refuse to close accounts so they can keep fraudulently charging non-driving seniors. This is a crooked company, and nobody should do business with them.
On May 10, 2023, I was involved in an accident with one of USAA's clients. Everything proceeded smoothly until they decided to give me the runaround in repairing my car or compensating me for its worth. The adjuster was nowhere to be found, and it took me a couple of months to receive any response from them. They informed me that my car was a total loss and provided a specific amount they were willing to pay for it via email, stating that I could dispute it if I could find a car in the same category with the same mileage within a 100-mile radius. Unfortunately, I couldn't find an exact match, but I did find a vehicle that was one year older and one year newer, so I disputed the price they were offering. They assured me they would get back to me in a couple of weeks, but I never heard from them again. Frustrated, I took the step of filing a complaint against them with the Texas Department of Insurance and the Office of the Attorney General. However, I received no assistance beyond the insurance company responding to me and denying my dispute without providing any tangible reasoning. This was after three months of back-and-forth since my car accident, with no access to a replacement vehicle or rental car. Now, it has been five months, and they are attempting to push the responsibility onto my own insurance. These actions indicate that these individuals are playing games with people's lives, and there seems to be no one holding them accountable. It is disheartening to realize that we live in a country that is supposed to protect average citizens from being taken advantage of by large companies like USAA, but this has proven to be far from the truth. I have lost trust in the entire system, and I am determined to stop paying insurance premiums to these corporate entities that seem only interested in taking our hard-earned money every day, without delivering the support they promise.
I was shopping for auto insurance on 11th September 2023. Liberty took$8614 out of my bank that same night without my permission. And now they will not return my hard earned money. Every time I call ,they give me sorry excuses. And now they tell me that ,yes we took your money by fraud. Go write your congressman. But we'll give it back to you in 15 days. Meanwhile my bills are piling. Liberty Mutual stole my money. Please avoid Liberty Mutual at every cost.
I have dealt with many auto insurance companies in my life time but none as deceitful as AAA!! I signed up with a AAA insurance agent back in March. The premium I was would be $138/month-(all good). The agent told me I had to pay 4 months in advance so I gave my credit card to pay for the 4 months including the current month. One month later I received my monthly invoice for payment. The amount due had jumped from $138 (monthly) to $276. I called AAA and they said this was because of an accident that occurred 5 months prior where the other driver was at fault, though the case was still had yet to be closed. AAA would not accept the quoted premium of $138/month. So I shopped for a new insurance policy. A division of Farmers Insurance (Toggle) sold me their auto policy which was superior to AAA at $118/month with only $500 deductible. I canceled AAA and jumped onto the Farmers policy. I contacted AAA to cancel the policy and requested the 3 months paid in advance be reimbursed to me. I was told that I would not be reimbursed and in fact I was still responsible for the premium payment of $276 - that this payment would not be forgiven. I have since filed a claim with the BBB (Better Business Bureau) and if this fails I will take AAA to small claims court. Prior to this experience I respected the AAA name. I've learned that this company is simply TOO BIG and feel they can take advantage of their customers at will. I have since canceled EVERYTHING AAA (roadside service and an insurance policy). This big business corporation is NOT TO BE TRUSTED!!!!
Total scam. Beware. They use drive easy app to bat and switch.
Not all those who wander are lost.
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