What is Mechanical Breakdown Insurance?
As car owners, we all know that accidents and mishaps are a part of life and they can occur anytime, anywhere. But what happens when a car breaks down due to a mechanical failure? A regular car insurance policy may not cover such repairs, leaving you with a hefty repair bill.
This is where Mechanical Breakdown Insurance (MBI) comes in to save the day. Also known as “auto repair insurance,” MBI covers damages that result from mechanical breakdowns of your car, including those caused by normal wear and tear.
What Does Mechanical Breakdown Insurance Cover?
- Engine failure
- Transmission failure
- Suspension issues
- Electrical system problems
- Air conditioning and heating malfunctions
- Brake system failures
- Steering system breakdowns
Is Mechanical Breakdown Insurance Worth It?
While MBI is an optional coverage and isn’t required by law, it can be worth considering if you want peace of mind knowing that unforeseen mechanical failures will be covered by your insurance policy. One major benefit of MBI is that it may save you money in the long run, especially if you own a car that is prone to mechanical issues.
MBI is also beneficial for those who don’t have an emergency fund set aside for unexpected car repairs or for those who don’t have a warranty or extended warranty.
How Much Does Mechanical Breakdown Insurance Cost?
MBI can be purchased as an add-on to your existing car insurance policy. The cost of MBI varies depending on the insurance company and the type of car you drive. On average, MBI can cost anywhere from $20 to $70 per year, making it an affordable optional coverage to consider adding to your policy.
| Insurance Company | Cost of Mechanical Breakdown Insurance |
|---|---|
| State Farm | $50 per year |
| GEICO | $42 to $120 per year |
| Allstate | $70 to $200 per year |
| Progressive | $50 to $100 per year |
Keep in mind that the cost of MBI will depend on several factors including the age, make and model of your car, as well as your driving history and location. It’s important to shop around and compare quotes from different insurance providers to find the best deal.