Mechanical breakdown insurance (MBI) could help you cover repair costs after your vehicle experiences an unexpected breakdown. While USAA doesn’t sell MBI, several insurance providers do, like GEICO and Allstate.
One of the perks of buying a newer vehicle is the layer of security its warranty can give you. But as your car gets older—and its repair costs will likely become more expensive—that warranty will eventually expire. Some drivers who want to hold onto similar protections for a little longer opt to purchase MBI as an add-on to their car insurance
policy, but not all providers offer it. Here’s a look at mechanical breakdown insurance, what it covers, who offers it, and when it can be worth it.
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers USAA mechanical breakdown insurance: the basics
First things first: what is mechanical breakdown insurance?
Also referred to simply as “MBI,” mechanical breakdown insurance is a car insurance coverage type that can help you cover repair costs after your vehicle unexpectedly breaks down rather than being damaged by a collision or another unexpected incident.
Secondly, does USAA offer mechanical breakdown insurance? Unfortunately, the answer here is no: USAA sells many of the standard types of car insurance, but it doesn’t sell mechanical breakdown insurance.
Of the insurance providers that do offer mechanical breakdown insurance, the terms of this protection will vary based on different factors, including:
Your eligibility: Factors like your vehicle’s age and mileage as well as the other types of coverage you have in place may dictate whether or not an insurance provider will offer you mechanical breakdown insurance for your vehicle.
How long it lasts: Insurance providers may limit your vehicle’s mechanical breakdown coverage to a certain number of years or miles.
What you pay: Just like comprehensive
and collision coverage
, MBI coverage will typically come with a deductible that you have to pay out of pocket before insurance covers the rest of your repair costs. What MBI covers: Every provider that offers MBI may have different terms and conditions regarding what is and isn’t covered. It generally covers necessary repairs to various mechanical components, but it won’t cover routine maintenance or repairs from damage that was intentional or the result of negligence.
What does mechanical breakdown insurance cover?
Let’s further break down what MBI covers.
Car insurance doesn’t automatically cover damage or repairs to your own vehicle—unless you have the right coverage in place. Comprehensive and collision coverage will cover your vehicle’s repair costs after specific events, like an accident or natural disaster, but not for an isolated breakdown incident.
For this, you’d need mechanical breakdown insurance. Generally, the coverage it offers is similar to a manufacturer’s warranty you’d get with a new vehicle, covering essential repairs to major components and systems, including its:
With the right insurance provider, your mechanical breakdown insurance could offer you protection in addition to your vehicle’s current warranty, or extend coverage after its warranty is expired—and compared to a warranty, you can often have more flexibility when choosing an auto shop with MBI, provided the parts and labor costs fall within a reasonable range.
MBI could end up saving you thousands in the event that your vehicle experiences a major mechanical problem like an engine failure.
What does MBI not cover?
For all that MBI does cover, there’s plenty that it may not—which may also vary from provider to provider. Generally, you may not see coverage under MBI for:
Coolant and other fluid changes
Brake pads or brake shoes
Routine maintenance items
Repairs due to wear and tear or improper maintenance
How much does mechanical breakdown insurance cost?
MBI generally isn’t very expensive: it’s not uncommon for coverage to range between $100 and $200 per year. That’s roughly $8 to $17 per month, meaning it could be well worth it if it saves you on hefty repair costs later.
That said, the type of vehicle you drive will affect how much MBI coverage would cost for you—and whether it qualifies for coverage at all. You can generally expect to pay more for MBI coverage if your vehicle:
Has low reliability ratings
Has complex or high-tech systems that could elevate repair costs
With this in mind, you could generally expect MBI for a base-level Honda Civic
with a strong reliability rating to cost less than a fully-loaded luxury SUV with advanced driver assistance or other tech features. Is mechanical breakdown insurance worth it?
It depends on your priorities. Mechanical breakdown insurance can provide some added financial security if you’re worried about not being able to cover a major unexpected repair upfront. Under the right policy, MBI can continue protecting your vehicle after its warranty expires, and it’s usually far cheaper (and more regulated) than an extended warranty.
The flip side is that if you never use MBI, you might have buyer’s remorse for purchasing something you didn’t need. It could also prove to be a false sense of security if your insurance provider decides to deny your claim
, and you end up having to pay out of pocket for your repair anyway. Whether MBI is worth it depends on your budget, the details of your current vehicle warranty if you have one, and your level of comfort with handling unexpected repair costs.
Mechanical breakdown coverage vs. extended warranty
For all they might have in common, MBI and extended warranties
have their key differences. While extended warranties may be easier to find for older and high-mileage vehicles, a couple of the main advantages of an MBI over an extended warranty are that it tends to be far less expensive and more regulated.
| Mechanical breakdown insurance (MBI) | |
|---|
| Vehicles typically need to be under a certain age and mileage | Can often be added to a vehicle at any point during its lifespan |
| One or multiple options; varies by provider | Multiple tiers of coverage from different providers |
| Varies by provider—maximum limit of 7 years/100,000 miles are common requirements | Coverage options can extend to 15 years/300,000 miles |
| | Deductibles commonly range from $0 to $250 |
| Regulated by state insurance commissioners | |
| | Roadside assistance often included |
| | $1,300 to $4,000 per year |
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The bottom line
If you drive a newer vehicle and you’re already covered by a fairly comprehensive warranty, MBI might not be a necessity—and if you’re picking and choosing coverage options, full coverage
should take priority. But under the right circumstances, it can add an extra layer of coverage at a relatively low cost—especially in comparison to some of the high-cost repairs it covers. For the insurance coverage it offers, USAA generally offers quite competitive rates, but it doesn’t sell mechanical breakdown insurance. If MBI is a must for you, you can seek out quotes from other providers, like GEICO
or Allstate
, and compare your options. "Jerry
is the future of car insurance! I downloaded the app, entered the information, picked my insurance rate, and paid my fee. I even switched insurance providers easily! Jerry saved me $182/month so quickly!” —Paulina F.
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