Do I Need Mechanical Breakdown Insurance?


As a responsible car owner, you understand the importance of protecting your investment. You likely have auto insurance to cover accidents, theft, and other unforeseen events. However, you may have heard about another type of coverage – mechanical breakdown insurance (MBI). This blog explores MBI, how it differs from extended warranties, and whether you need it.

Understanding Mechanical Breakdown Insurance (MBI)

Mechanical Breakdown Insurance, also known as car repair insurance or MBI is a form of coverage designed to protect you against costly repairs to your vehicle’s major mechanical components. While it may sound similar to an extended warranty, the two have significant differences.

Car manufacturers or dealerships typically offer extended warranties and are an extension of the manufacturer’s warranty. In contrast, MBI is a separate insurance policy offered by insurance companies. Extended warranties often have a limited coverage period and may include specific terms and conditions, while MBI provides more comprehensive coverage for an extended period beyond the manufacturer’s warranty.

What Does Mechanical Breakdown Insurance Cover?

MBI typically covers major vehicle components such as the engine, transmission, suspension, electrical systems, and air conditioning. If any of these components fail due to mechanical issues, MBI can help cover the cost of repairs or replacements. However, reading and understanding the policy’s fine print is crucial, as coverage can vary widely among insurance providers.

Pros of Mechanical Breakdown Insurance

Comprehensive Protection: Unlike manufacturer or extended warranties, MBI covers a broader range of mechanical failures, offering more comprehensive protection against expensive repairs.

Flexibility: MBI is available for both new and used vehicles, making it a viable option regardless of your car’s age.

Peace of Mind: Knowing you have coverage for potential mechanical breakdowns can provide peace of mind and alleviate financial stress.

Choice of Repair Shops: With MBI, you’re usually free to choose the repair shop of your preference, provided it is an authorized facility.

Cons of Mechanical Breakdown Insurance

Overlapping Coverage: If your car is still under the manufacturer’s warranty or you have an extended warranty, you might be paying for overlapping coverage, which can be redundant.

High Costs: Mechanical breakdown insurance can be costly, especially if you don’t experience major mechanical issues during the coverage period.

Deductibles and Exclusions: Like any insurance policy, MBI may have deductibles and exclusions that limit the coverage or require you to pay a portion of the repair costs out of pocket.

Do You Need Mechanical Breakdown Insurance?

The necessity of Mechanical Breakdown Insurance depends on several factors, including your vehicle’s age, reliability, and financial situation. Here are some points to consider when making your decision:

Vehicle Age: If a brand-new car is still covered under the manufacturer’s warranty, getting MBI might not be necessary during the warranty period. Once the manufacturer’s warranty expires, MBI becomes more relevant.

Vehicle Reliability: Research the make and model of your car to determine its historical reliability. If your vehicle has a strong track record of reliability, the likelihood of experiencing major mechanical breakdowns may be lower, making MBI less essential.

Financial Preparedness: Consider your financial ability to cover unexpected repair costs. If you have sufficient savings or an emergency fund, you might be better off without MBI.

Personal Risk Tolerance: Assess your comfort level with the possibility of facing significant repair expenses. Some people prefer comprehensive coverage for peace of mind, while others are willing to take on the risk.


Mechanical Breakdown Insurance can be a valuable addition to your auto insurance coverage, providing peace of mind and financial protection against major mechanical failures. However, whether you need it depends on your circumstances and preferences. Consider your car’s age, reliability, and financial readiness to cover unexpected repair costs before deciding. If you choose to purchase MBI, research different providers, compare their offerings, and read the policy details carefully to ensure you select the best coverage for your needs.