When you drive an older car, it is difficult to make ownership affordable. As miles add up, repair costs also go up and your budget can be affected. The use of MBI (mechanical breakdown insurance) is recommended in such a situation because this insurance type was created specifically to cover mechanical failures and breakdowns. You then end up minimizing the out-of-pocket expenses you have to deal with when the vehicle breaks down.
With mechanical breakdown insurance, you can expect to pay annual or monthly premiums. There is no reason to ask “can I buy extended warranty on a used car” because you surely can. However, policy requirements will always vary from one provider to the next. There are insurers that only offer policies for the vehicles under 100,000 miles or younger than seven years old. Others extend this. Usually, the younger the vehicle, the cheaper the MBI policy.
Because of the various differences between deals from providers, you need to carefully compare different policies. This will help you to make a correct choice. Consider the following when you make comparisons so that your final choice will be the best one you could made. Knowledge is what counts the most at the end of the day.
What Is Covered?
To put it as simple as possible, what repair will be covered by the mechanical breakdown insurance will be covered by the plan level and type. Similar coverages can be given by VSCs, but technically they are not insurance. They just function in a similar way to reduce mechanical repair costs.
The most common coverages you can expect with mechanical breakdown insurance are:
- Rental vehicle assistance
- Coverage for systems like electrical, engine, and transmission
- Coverage for parts
- Roadside assistance (may or may not include towing)
- Choose shops for repairs
- Trip interruption coverage
- Roadside tire protection
Keep in mind that most MBI does not cover costs related to wear and tear items like shocks, brakes, and tires. This is why you absolutely need to read absolutely everything inside the contract you sign. It will highlight terms and conditions so you can easily see what is covered and what is not covered.
Average Costs
It is very important to choose the right insurer because mechanical breakdown insurance costs are instantly affected. Other important factors that count are vehicle type and location. You can easily end up with costs that are really low, like $30 yearly, or go up to $75 per year. Deductibles are oftentimes included. This practically means that when you have to deal with covered repairs between a specific range, you pay a part of it. Usually, very small repairs are not covered. For the bigger repair jobs, the MBI is very useful because bills of thousands of dollars are much higher than fixed costs.
For the vehicle service contracts, prices are different. You can choose from various plan types, usually ranging from coverage to very comprehensive. Contract cost can normally be split up so monthly payments can be done, usually for a maximum of 3 years.
When the car is under your ownership until contracts expire, regardless of the reason, you can end up getting something extra. This is because the buyer will get more protection, which is something everyone wants.
Always compare the different deals offered by as many providers as possible so that you can choose something that is affordable. However, do not make the mistake of choosing the cheapest one since what is covered is what is really important. It is always better to pay a little extra so that you can end up with more protection.
