Mechanical Breakdown Insurance

Mechanical Breakdown Insurance Information

If you have never heard of mechanical breakdown insurance or MBI coverages, this type of plan covers car repairs that have to do with breakdowns. Therefore, it does not offer protection for accidents. Drivers normally purchase this type of insurance directly from their insurance carrier rather than opting for an extended warranty from their auto dealer.

How an MBI Coverage Works

MBI is like an extended warranty as it pays for car repairs that go above what is covered by the car’s regular warranty. It may also supply extra coverage, depending on the insurance policy and the insurance company. MBI may be included as an endorsement to your auto insurance plan. This type of protection may offer certain benefits over an extended warranty, as it is featured through an insurance company and is overseen by the insurance industry for regulations and claims.

Why an MBI Policy May Be a Better Value than an Extended Warranty

To elaborate further, you may want to choose MBI protection over an extended warranty for the following reasons:

This MBI plan may include more systems and components than a dealer’s warranty.
The policy will less cost you less money than buying an extended warranty.
Car repairs whenever needed.
You may be able to transfer the policy to a new car owner or you can cancel the policy whenever you want without losing money.
You do not have to assume a large lump sum payment or pay any interest if a warranty gets bundled as a part of auto financing.

What an MBI Plan Covers

When you see the advantages of using this type of policy, you may want to learn just what exactly it covers. MBI policies cover and pay for the following:

Engine parts, such as the water pump or oil pump
The brakes
The exhaust
The drivetrain
Electrical parts, such as the alternator and starter

What Else the Insurance Covers

You can also purchase MBI coverage that extends to the following:

The air conditioning system
The fuel system
The steering column

What MBI Policies Will Not Cover

MBI plans will not cover any damage that results from an auto accident. Nor will they cover you financially for routine maintenance on your car. Sometimes, they will not cover repairs associated with normal wear-and-tear. Therefore, you need to check what is categorized as “wear-and-tear” when you purchase an MBI policy.

Usual Exclusions

The following are the usual exclusions when you include an MBI endorsement to your auto insurance:

Tune-ups
Tires
Wheel balancing
Suspension alignment
Fuel filters
Lubrication
Fluids and coolants
Brake pads, linings, and shoes
Spark plugs

Does You Auto Insurance Regularly Cover MBI?

You regular auto insurance plan is not designed to include MBI coverage. You must either buy this insurance by endorsement or separately. This type of insurance plan does not replace your auto insurance. Instead, it is an add-on plan.

You will still need to buy basic auto insurance to cover the minimum auto insurance requirements for your state. If you own a newer vehicle, you will also need to purchase collision and comprehensive insurance or other add-on insurance plans.

How Much Will You Pay for an MBI Policy?

This type of insurance plan normally costs less than a dealer’s extended warranty. That is why it is considered a better choice if you want similar coverage. The price you will pay will depend on the make, model, and year of your vehicle.

While the cost of other auto insurance protection plans is based on your credit rating or personal driving record, MBI coverage is based solely on the make, model, and year of your car. That is because older cars are more likely to break down. Therefore, the criteria for adding the insurance is different.

Mechanical Breakdown Insurance