What is Mechanical Breakdown Insurance, and do I need it?

Tegner Miller Did You KnowHave you ever had a car that drove great and had minimal issues for the first few years, only to break down shortly after the warranty ended? This frustrating scenario is more common than you’d think, and can lead to expensive repairs. Thankfully, mechanical breakdown insurance can help pay for repairs after a post-warranty breakdown.

In many ways, mechanical breakdown insurance works like an extended warranty on your car. However, this type of insurance is often better than an extended warranty for a few reasons:

1.  Typically you can cancel it at any time

2.  It often provides better coverage for repairs

3.  It typically costs less than the warranty policy purchased through the dealer

4.  These policies often contain extra benefits including:

a. towing
b. roadside assistance
c. rental car coverage

While mechanical breakdown insurance is often superior to extended warranties purchased from car dealerships, there are several important stipulations regarding coverage that you should consider before purchasing a policy.

  • The car must be newly purchased. Generally, insurers will not sell this policy on a vehicle that was purchased over 30 days prior.
  • Be sure to consider “what is a mechanical breakdown?” and “what is normal wear and tear?”.  When you purchase your insurance, be sure to find out what the policy will cover and what it will not cover. While you might consider a malfunction a genuine breakdown, the insurance company might classify it as normal wear and tear.
  • Ask whether the policy is transferrable if you sell the car. Sometimes, mechanical breakdown policies are transferrable to the next owner of your car which could increase your vehicle’s selling price.

Before you purchase a mechanical breakdown insurance policy, be sure these policies are right for you.  Speak to your knowledgeable TMIB broker to learn more about what is available.  We have several Mechanical Breakdown policy options from which to choose. Please call us at 310-828-9662.

The information provided in our blogs are very brief overviews that do not provide complete descriptions of any coverage described nor do they list all of the important factors one should evaluate before deciding on a policy. Please speak to your broker at TMIB about your specific insurance needs and for more detailed information about types of coverage.