Auto Insurance Coverage

How to Know if You Need Mechanical Breakdown Insurance


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Mechanical breakdown insurance is a great product but it's not for everyone. There are certain qualifications your vehicle must meet as well as restrictions on the coverage so it is important to understand the product before you make any commitments.

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Do You Need it?

Mechanical breakdown insurance is not a requirement or a type of coverage that any person actually has to carry. It can be a lifesaver if a large and unexpected repair bill pops up and you should consider mechanical breakdown insurance if a large repair will cause you serious financial harm. In the end it comes down to your personal situation. Some people will want the extra protection while others feel that the manufacturers warranty will cover them from some of the largest repair bills. Below are some pros and cons to consider:

Pros

  • Any repair bills are covered protecting you from costly repairs
  • Repairs can be done at any licensed repair shop which is convenient if you are traveling when the breakdown occurs
  • All parts are covered
  • Cost is just rolled into your premium, avoiding the large upfront cost of a extended warranty
  • Most repair shops will bill insurance company direct

Cons

  • Only available on new cars which are still under manufacturer warranty
  • While not overly expensive it is another cost that has to be considered

What is it?

Mechanical breakdown insurance covers the cost of parts and labor on any repairs that are caused by breakdown or wear and tear. It does not cover the cost of repairs caused by accidents nor does it offer any type of liability coverage. Most policies cover all working parts but you should always read your policy in full to make sure there are no exclusions or restrictions.

Qualifying

Mechanical breakdown insurance does not cover older vehicles. Most insurers require that the vehicle be less then 15 months old and have less then 15,000 miles on it. The owner must be the first title holder on the vehicle so anyone driving an older vehicle will not be eligible. Once you have mechanical breakdown insurance on your vehicle it can be renewed until the vehicle is 7 years old or has 100,000 miles on it.

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Details

Mechanical breakdown insurance is an insurance product and must be purchased from an insurance company. This is one of the major differences between an extended warranty and mechanical breakdown insurance. There is usually a deductible of around $250.00 but again, make sure you read your entire policy and ask your agent about anything you don't understand. Mechanical breakdown insurance doesn't cover routine maintenance such as oil changes.

Where to Buy?

Most major insurance companies offer it and you can get a quote either directly from your agent or online. Geico offers a popular product.

Mechanical breakdown insurance is not a necessity but it something every new car owner should take a look at. Everyone has different insurance needs and your personal situation will guide you in your decision regarding mechanical breakdown insurance.

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