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mechanical breakdown insuranceMaybe you’ve seen the commercials for Mechanical Breakdown Insurance (MBI).  They show a distressed person whose car has broken down.

“How will you pay for the repairs?” it asks.

But, is they story spun in the commercials reality?  Should you buy their product, or is an extended warranty from the manufacturer a better option?

Is Mechanical Breakdown Insurance as Good as It Sounds?

The ValuePenguin website decided to look into Mechanical Breakdown Insurance.  ValuePenguin compares whether expenses provide the expected benefit for buyers.

While the principle of MBI sounds reasonable, experts questions its valueMBI covers major vehicle system malfunctions.  However, the frequency of such major breakdowns tends to be low.

Additionally, MBI doesn’t cover routine maintenance.  As a result, it also doesn’t cover repairs that are a result of poor maintenance on the owner’s part.  Those repairs, like regular maintenance, come from the owner’s pocket.

The website says one of the problems with Mechanical Breakdown Insurance is restrictions on vehicle mileage.  The age of your vehicle also may present a problem.  This can be problematic since older cars break down more frequently.

mechanical breakdown insurancePeople with MBI policies also face the possibilities of high deductibles and a limited choice of providers.  Drivers may find themselves with a problem and MBI policy doesn’t cover the repairs they need.

While auto warranties expire, it’s possible to add an extended warranty when purchasing a vehicle.  The payments for this can be added to into the price of your loan.  If you don’t have a car loan, extended warranty payments can be made on a monthly basis.

Of course, just like the original warranty, an extended warranty eventually ends.  Conducting regular and proper maintenance of your motor vehicle is the best way to ensure it runs safely and efficiently.

If you are considering an MBI and would like to discuss it further, the Keating Agency is happy to discuss your options with you.  We are your local, independent insurance agency and our job is to look out for your best interest.  Please feel free to contact us on this or any other issue.

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