Next to your home, your car might be your most expensive investment – and one that can be costly to maintain. Your California auto insurance policy will cover damages to your car from accidents, but many vehicle owners face major repair costs after the manufacturer warranty expires. Give yourself an extra level of protection from unforeseen expenses with a Mechanical Breakdown Insurance (MBI) policy.
What Does Mechanical Breakdown Insurance Cover?
Mechanical Breakdown Insurance provides coverage for major (and expensive!) components that often need repair after the manufacturer warranty has expired, such as your engine and transmission. There are a variety of policies available to fit the coverage you’re looking for, all the way up to bumper-to-bumper protection that covers virtually all parts and systems of your vehicle’s mechanical and electrical components, excluding maintenance. MBI policies also offer other protection related to repairs, such as 24-hour roadside assistance and rental vehicle coverage.
Mechanical Breakdown Insurance vs. Extended Warranty – What’s the Difference?
If you’ve ever purchased a car through a dealership, you’ve been offered an extended warranty for coverage after the manufacturer warranty on the vehicle expires. These extended warranties can be expensive, and an MBI policy often provides better coverage for a better price. Policies can cover all mechanical parts of the car; dealer extended warranties only cover a specific list of items. And if you have a favorite auto shop you trust for repairs, you can have your car repaired anywhere you like – you’re not limited to having repairs done at the dealership. Mechanical Breakdown policies give you a choice of coverage options & deductible amounts, and also offer more convenient payment options – a small policy premium each month as opposed to a large payment up-front.
When Do I Purchase Mechanial Breakdown Insurance?
Mechanical Breakdown Insurance is available for both new and used vehicles, with restrictions on the numbers of miles used vehicles can have before beginning the policy. The earlier you can start an MBI policy the better – as your car ages and mileage grows, rates increase for coverage. You’ll receive longer coverage for a cheaper price taking the policy out now, rather than waiting until your manufacturer warranty is about to expire. Depending on your carrier, most policies can be renewed for 6-7 years or up to 100,000 miles.
Don’t wait until you get your first expensive repair bill after your warranty has expired –give yourself the peace of mind that won’t happen to you. Contact your Tower Insurance Agent to find out if Mechanical Breakdown coverage is available for your vehicle.