What Is Mechanical Breakdown Insurance (MBI)?

Last Updated on December 31, 2025

Mechanical breakdown insurance (MBI) is optional coverage that helps pay for certain expensive repairs when your vehicle breaks down due to a mechanical or electrical failure (not an accident).

Think of it as “repair protection” that can work similarly to an extended warranty—usually with a deductible, exclusions, and eligibility rules. It’s typically offered as an auto insurance add-on, and it’s only available through some insurers on qualifying vehicles.

Below, we’ll break down how mechanical breakdown insurance works, what it covers (and doesn’t), how claims typically work, and when MBI is worth considering.

Key Takeaways

• Mechanical breakdown insurance (MBI) is optional coverage that helps pay for covered mechanical and electrical failures—not accidents, wear and tear, or routine maintenance.
• MBI is usually limited to qualifying vehicles (often newer and lower-mileage) and may need to be added early—sometimes soon after you buy the car.
• Most plans require a deductible and may require authorization before repairs begin, so it’s important to understand the claims process upfront.
• MBI can be worth it if you plan to keep your car beyond the factory warranty and want protection against big surprise repairs, but it may be redundant if you already have strong warranty coverage.

How Mechanical Breakdown Insurance Works

Mechanical breakdown insurance is designed for sudden, unexpected failures of covered components. If a covered part fails, you pay your deductible and the MBI coverage helps pay the remaining approved repair costs (up to your policy limits and subject to exclusions).

MBI Eligibility Rules

MBI is not usually available for every car. Most insurers that offer it restrict eligibility based on things like:

• Vehicle age (often new or relatively new vehicles)
• Mileage (often below a set odometer threshold when you add coverage)
• Ownership (some programs require you to be the first owner or to add coverage shortly after purchase)
• Vehicle type (coverage rules can differ for cars, trucks, SUVs, and sometimes RVs)

Because eligibility can be strict, MBI is something you typically add early—often when the vehicle is new (or soon after purchase), not after problems start.

MBI Deductibles and How You Pay

Most mechanical breakdown plans work like insurance:

• You pay a small ongoing premium (monthly, semiannual, or annual) as part of your policy.
• When a covered repair happens, you pay a deductible, and the plan pays the covered remainder.

Deductibles and pricing vary widely by insurer, vehicle, and state—so treat any “average cost” you see online as a rough estimate, not a guaranteed rate.

MBI Claims Usually Require Authorization

One thing that surprises drivers: many MBI plans require authorization before repairs begin. That means you (or the shop) may need to contact the administrator/insurer, confirm coverage, and get approval before the repair is completed—especially for big-ticket items like engines and transmissions.

What Mechanical Breakdown Insurance Covers

MBI coverage varies by company and plan tier, but it commonly focuses on major mechanical and electrical systems. Covered items often include repairs related to:

• Engine failure and internal engine components
• Transmission repair or replacement
• Drive axle and certain drivetrain components
• Suspension and steering components (varies by plan)
• Air conditioning and other electrical systems (often plan-dependent)

Important: MBI is meant for breakdowns. If a part fails due to excluded wear, poor maintenance, neglect, or a pre-existing issue, the claim can be denied—even if the part itself is listed as “covered.”

What Mechanical Breakdown Insurance Does Not Cover

MBI is not maintenance coverage, and it’s not accident coverage. Common exclusions include:

• Routine maintenance (tune-ups, fluids, filters, etc.)
• Normal wear and tear (wear items like belts, hoses, and many brake components)
• Oil changes, tire rotations, and similar upkeep
• Brake pad replacement and other routine wear items
• Damage from misuse, neglect, improper repairs, or some aftermarket modifications
• Accidents and collision-related damage

Also, don’t confuse MBI with comprehensive auto insurance. Comprehensive coverage is designed for non-collision events like theft and vandalism—not mechanical failures.

Mechanical Breakdown Insurance vs. Car Warranty vs. Extended Warranty

These products sound similar, but they’re not identical.

If you want a refresher on what factory coverage usually includes, start here: What does a car warranty cover?

Extended warranties (often called vehicle service contracts) can be offered by automakers, dealers, or third-party companies. If you’re considering a third-party provider, compare terms closely—here’s an example review to help you research: CarShield.

Bottom line: The “best” option depends on what’s available for your vehicle, how long you plan to keep it, and whether you’d rather pay a little over time (MBI) or pay for a contract up front (many extended warranties).

Mechanical Breakdown Insurance vs. Roadside Assistance

Roadside assistance helps you handle the immediate problem (like getting towed or getting a jumpstart). MBI helps pay for the repair after a covered breakdown.

Many drivers bundle MBI with roadside-type benefits, but they’re still different coverages. For example:

• Roadside assistance can help with towing, lockouts, jumpstarts, and flat tires.
• Towing coverage may pay for the tow, but not the mechanical repair itself.
• Fuel delivery is a convenience feature, not repair coverage.
• Emergency travel expenses (trip interruption) may be included with some protection plans, depending on the contract.
• Rental reimbursement can help cover a temporary vehicle while yours is in the shop—if you carry that coverage.

Where to Buy Mechanical Breakdown Insurance

Not every insurer offers mechanical breakdown insurance, and availability can vary by state. Some companies offer MBI as a true insurance add-on, while others offer a separate vehicle protection plan or service contract.

If you’re comparing options, these guides can help you understand common eligibility rules and how each program works:

• GEICO mechanical breakdown insurance (often limited to very new vehicles and must be added early)
• Progressive mechanical breakdown insurance (availability and structure can differ by state)
• State Farm mechanical breakdown insurance (a helpful reference if you’re wondering whether your carrier offers MBI)

Always request the plan contract or coverage booklet and confirm: covered components, exclusions, authorization rules, deductible, repair shop rules, cancellation/refund terms, and whether the coverage is transferable.

How Much Does Mechanical Breakdown Insurance Cost?

MBI pricing depends on your insurer, state, vehicle, deductible, and coverage level. In many cases, it’s priced as a relatively small add-on premium compared to the potential cost of a major repair—but it’s still insurance, which means you might pay for it and never file a claim.

If you’re choosing between deductibles, a higher deductible usually lowers your premium—but increases what you pay out of pocket when a covered breakdown happens.

Is Mechanical Breakdown Insurance Worth It?

Mechanical breakdown insurance can be worth it if you want help budgeting for potential major repairs—especially after factory warranty coverage ends. But it’s not automatically the right choice for everyone.

MBI May Be a Good Fit If:

• You plan to keep your vehicle for years beyond the factory warranty
• You’d struggle to pay for a surprise major repair out of pocket
• Your vehicle is eligible now (age/miles) and you want to lock in coverage early
• You want “pay-as-you-go” style protection instead of a large upfront contract

MBI May Not Be Worth It If:

• Your car is still fully protected by a strong factory warranty and you don’t expect to keep it long
• You already purchased an extended warranty/service contract with similar coverage
• You have a healthy repair emergency fund and prefer to self-insure
• You’re stacking add-ons and may be starting to over-insure your vehicle

If you’re unsure whether standard auto insurance would help with a breakdown (it usually won’t), here’s a full explainer: Does car insurance cover mechanical repairs?

How to File a Mechanical Breakdown Insurance Claim

Claim steps vary by insurer, but the process often looks like this:

1. Confirm it’s not a warranty/recall issue first. If the repair is covered by a recall or factory warranty, that may be your primary route.
2. Take the car to a licensed repair shop and get a diagnosis.
3. Request authorization before repairs begin. Many plans require approval for coverage (especially for major repairs).
4. Pay your deductible if the repair is approved.
5. Complete the repair and keep all documentation (diagnosis, invoice, and maintenance records if requested).

Tip: Keep up with maintenance. Even if a part failure is sudden, poor maintenance history can create claim disputes under many breakdown contracts.

FAQs on Mechanical Breakdown Insurance

Final Word on Mechanical Breakdown Insurance

Mechanical breakdown insurance is optional coverage that helps pay for covered mechanical and electrical failures that aren’t related to accidents, wear and tear, or routine maintenance.

If your vehicle qualifies and you plan to keep it long-term, MBI can be a practical way to reduce the financial shock of major repairs. Just make sure you read the contract, understand the exclusions, and compare it to warranty and extended warranty alternatives before you buy.