Is mechanical breakdown insurance worth it?

Mechanical breakdown insurance (MBI) is an optional part of car insurance meant to cover trips to the mechanic not caused by an accident. For example, a busted engine or puncture in your air conditioner hose will be covered by MBI. While the coverage seems reasonable in principle, many experts question its value.

What is mechanical breakdown insurance (MBI)?

Mechanical breakdown insurance (MBI) is a type of insurance for car repairs. Unlike standard auto insurance policies such as liability insurance, MBI doesn’t cover you after an accident. Instead, MBI covers repairs for car parts that break down after a mechanical failure. It doesn’t always take a wreck to make your car stop working.

What does mechanical breakdown insurance cover?

Mechanical breakdown insurance covers major failures that can occur in your car, which are often excluded in basic auto insurance. Whether it's bad brakes, transmission issues, the electrical system or any other major vehicle system malfunction, MBI covers the repairs.

Does car insurance cover mechanical breakdown?

If your transmission suddenly goes out, a typical car insurance policy won’t pay to replace it. Mechanical breakdown coverage can come in handy by covering the cost of repairs for specified vehicle components. In this way, MBI coverage is similar to an extended warranty.