Mechanical breakdown auto insurance is a type many drivers do not know about. However, there are many benefits to it.
MBI may be an alternative to purchasing a vehicle warranty. However, it is not available for all cars. Still, it can be an affordable way to reduce some of your risks. It is important to know what this insurance is. And, be sure to compare it to a warranty. Here’s what you need to know. 
When Does MBI Apply?
An MBI does not cover any damage to your vehicle if you are in an accident. Rather, it provides coverage for car repairs that have nothing to do with accidents or other damage. You will find it available through various auto insurance providers. The coverage will differ from one company to the next. The policy helps cover car repairs that the manufacturer’s warranty does not cover.
Here’s an example. You buy a new vehicle. Instead of an extended warranty, you opt for this type of car insurance. Let’s say an engine failure occurs a few months later. This may fall under the manufacturer’s warranty provided by the vehicle manufacturer. You file a claim with your manufacturer for that warranty.
However, what if the car repairs do not fall under the manufacturer’s warranty? In most cases, you would pay for these out of pocket. If you have MBI, it can cover the cost of those repairs instead.
Most policies will cover
- Brakes
- Drivetrain
- Transmissions
- Oil pumps and water pumps
- Electrical vehicle components
- Fuel systems
- Air conditioning and heating
- Steering components
or other vital systems.
When Should You Buy MBI?
There are various reasons to invest in MBI. Here are a few.
- Most MBI policies are less expensive than extended warranties available through car dealerships.
- They can transfer to the new owner if you decide to sell the vehicle down the road.
- You can cancel it whenever you want.
- You usually choose where to get repairs for your vehicle if there is a need to file a claim.
- Most often, this coverage is going to cover more than the dealership warranty.
There are exclusions to this type of auto insurance. For example, alignments and tune-ups often do not fall under this coverage. Most often, this car insurance is also affordable. That means you can get financial support for less than what you may pay for a major expense. It can give you peace of mind knowing you have this protection.