Mechanical Breakdown Insurance: Is It Worth It? (2023)

Daniel is a MarketWatch Guides team writer and has written for numerous automotive news sites and marketing firms across the U.S., U.K., and Australia, specializing in auto finance and car care topics. Daniel is a MarketWatch Guides team authority on auto insurance, loans, warranty options, auto services and more.

Rashawn Mitchner is a MarketWatch Guides team editor with over 10 years of experience covering personal finance, loans, insurance and warranty topics.

When you purchase a new vehicle, it comes with a manufacturer’s factory warranty that covers some of your car’s main components in the case of a mechanical breakdown for a specified time and mileage. When that expires, mechanical breakdown insurance (MBI) can be a smart option to consider to ensure your vehicle is protected.

We at the MarketWatch Guides Team will explain what MBI covers, how much it costs to add to your car insurance policy and the best car insurance companies that offer this coverage.

Key Takeaways:

The MarketWatch Guides Team is committed to providing reliable information to help you make the best decision possible about insuring your vehicle. Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. After 800 hours of research, the end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Learn more about our methodology.

MBI, also called car repair insurance, is an optional coverage you can add to your car insurance policy. It covers repairs for a specific set of covered components outlined in your policy in the case of a mechanical breakdown, similar to an extended car warranty. This can help you save on unexpected repair costs when your car breaks down and provide peace of mind while on the road.

To use this coverage, you’ll call your car insurance provider when a covered component breaks down to start the process. You’ll then take your vehicle to an approved repair facility in your insurer’s network. Once your carrier approves the claim, you’ll pay your deductible (if one applies) and the insurance company pays the remaining balance directly to the repair shop.

You’ll want to read your MBI policy to learn the specifics of what’s included in your coverage. In general, MBI typically covers some of your vehicle’s most essential systems:

There will be exclusions to your MBI policy. These often include routine maintenance and wear and tear items such as:

MBI costs anywhere between $30 and $100 per year on average as an add-on policy to your insurance coverage. This is more affordable than an extended car warranty, which offers a similar type of coverage. MBI costs vary depending on several factors, including:

Because costs vary by provider, it’s best to get quotes from multiple insurance companies to find the best cost and coverage for your vehicle’s needs.

MBI plans can be a smart choice for those with newer vehicles who are concerned about covering out-of-pocket repair costs, as well as those who plan to keep their vehicles for a long time, but it may not be worth it for every driver. In the case of a mechanical breakdown, the cost of repairs to your vehicle’s most critical systems can be high. An MBI policy will pay for itself if the cost of repairing your vehicle is higher than your plan’s premium and deductible.

To decide whether MBI is worth it, consider your vehicle’s reliability and average repair costs. If your vehicle has a lower dependability score or is known for having higher repair costs, an MBI policy could save you money on repair bills. See the table below to learn about reliability ratings and average annual repair expenses for several leading car brands according to RepairPal:

However, if your vehicle tends to be more reliable or have low average repair costs, MBI may not be worth it for you. Similarly, if you have money set aside for possible repair needs in your budget already, you may be better off paying for repairs out of pocket.

An extended car warranty can be purchased from your car’s manufacturer or a third-party company to provide coverage for a range of components in the case of a mechanical breakdown. Although MBI and extended car warranties offer similar types of coverage, they differ in some notable ways. Here’s a breakdown of how they compare:

Both cover repairs due to mechanical failure and exclude routine maintenance and damage due to car accidents and wear and tear. Extended auto warranties typically offer more extensive coverage and allow you to choose from multiple coverage levels, depending on your vehicle’s needs.

MBI is more affordable than an extended auto warranty. While MBI typically costs between $30 and $100 per year, extended auto warranties typically cost between $400 and $900 per year on average. You can add MBI as supplemental coverage on your insurance policy, which means you’ll pay for protection as part of your insurance premiums. With extended warranty coverage, you’ll typically either make monthly payments or pay for the whole plan up front.

How long MBI coverage lasts depends on the provider you choose. For instance, Geico allows policyholders to add MBI to their coverage for up to seven years or 100,000 miles. There are generally much longer term lengths offered with extended auto warranty coverage, making it a better option for higher-mileage vehicles. Providers like Endurance offer coverage up to 200,000 miles, giving you added protection if you plan to keep your vehicle longer.

Many insurers only allow you to purchase MBI for new cars. For example, Geico requires you to add MBI to your policy within the first 15 months after purchasing your vehicle and before your car’s odometer reaches 15,000 miles. There’s greater flexibility with extended auto warranties. Most warranty companies offer coverage for vehicles below 150,000 miles.

Because MBI is offered as an add-on policy through insurers, it doesn’t come with additional perks. Insurance companies generally offer any extra benefits as other add-on coverage options. On the other hand, many warranty providers include benefits like emergency roadside assistance, rental car reimbursement and trip interruption coverage with your warranty coverage.

MBI can provide valuable peace of mind when your vehicle’s essential components break down. If you drive a car with low reliability ratings or high average repair costs or your vehicle is newer, MBI can be a smart choice to protect against unexpected repair costs. For those who have money budgeted for repair needs or who drive highly reliable vehicles, adding MBI to your insurance policy may not be worth it.

Not all insurance companies offer MBI. We recommend considering Geico and Progressive if you’re looking to add MBI coverage to your insurance policy.

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You can purchase Geico MBI if you have a newer vehicle that’s less than 15 months old with fewer than 15,000 miles. Once you add the coverage to your policy, you have the option to extend coverage for up to seven years or 100,000 miles. Geico’s mechanical breakdown insurance covers most major vehicle components outside of standard exclusions and comes with a $250 deductible.

Read more: Geico mechanical breakdown insurance

Progressive offers mechanical breakdown insurance once your vehicle’s factory warranty expires. It covers repairs needed to your vehicle’s most critical systems, with exclusions for routine maintenance items.

One unique feature about Progressive MBI is it covers both cars and RVs. It also offers flexible deductible amounts, your choice of repair shop and travel benefits. If your vehicle breaks down while traveling and Progressive approves your claim, you’ll receive up to $100 per day for food and lodging and up to $60 for rental car reimbursement.

Read more: Progressive mechanical breakdown insurance

Below are frequently asked questions about mechanical breakdown insurance.

Most insurance companies won’t cover wear and tear components or routine maintenance items. These include wiper blades, air filters, oil changes, oil filters, brake pads and tire rotations.

Yes, MBI covers repairs resulting from engine failure. Given that engine repair or replacement costs can range from several hundred to a few thousand dollars, an MBI policy can save you significant out-of-pocket costs in this case.

MBI is a supplemental insurance policy covering repairs to your vehicle’s most critical systems. Some providers like Geico cover most parts, excluding wear and tear components.

Yes, MBI is purchased as an add-on policy with other auto insurance products. You pay for the coverage as part of your standard auto insurance policy.

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

Our credentials:

*Data accurate at time of publication.