How Does Mechanical Breakdown Coverage Work?

Listen to this article

Are you thinking of purchasing mechanical breakdown coverage for your vehicle, but are not sure whether you need it, how it works, or really, how it even differs from other types of auto insurance? You’re not alone- mechanical breakdown insurance can be a highly beneficial type of coverage for your car, yet a lot of people don’t understand what it covers and how it is different from standard auto insurance policies or an extended vehicle warranty.

Before you invest in a mechanical breakdown insurance policy, we’re here to break down (get it?) everything you need to know about what kind of coverage you can expect, as well as when you can expect it. Buckle up for some important information about mechanical breakdown coverage!

What Is Mechanical Breakdown Insurance?

Before we go any further, let’s make sure you understand exactly what mechanical breakdown coverage is. If you have an auto insurance policy, you’re covered against anything that happens to your car, right? Wrong! Traditional auto insurance- that is, the kind you are required by law to have in order to own and operate your vehicle- only covers damage that has been incurred due to an accident or theft. It’s not going to help you out if your car breaks down on the side of the road due to normal wear and tear.

Mechanical breakdown coverage also differs from an extended vehicle warranty, which can be purchased for your car through its manufacturer or through a third-party company. Though mechanical breakdown insurance is similar to an extended warranty in that it helps cover expenses related to both minor and major auto repairs, mechanical breakdown coverage is superior to an average extended warranty in three pretty significant ways:

* It includes all parts and systems of your car, not just those specifically covered by typical dealer warranties.

* It allows you to make small monthly premium payments, rather than a huge lump-sum payment at the time of your vehicle purchase.

* It gives you the freedom to choose your own auto repair center instead of forcing you to drive the car back to the dealership every time there’s a problem.

How Does Mechanical Breakdown Coverage Work?

Now that we have a good understanding of what it is, let’s talk about how mechanical breakdown insurance can work for you. Let’s say you’ve had your car for four years and suddenly, it won’t start. Looks like you’re going to need a trip to the mechanic for diagnostics and repair. Without any type of coverage, you’re going to be responsible for 100 percent of the total repair cost. Even if you have an extended warranty from your manufacturer or dealer, if the part that ends up needing to be repaired or replaced is not on the list of parts or systems covered by the warranty, the full cost is coming out of your pocket regardless of how much you paid for that added protection.

However, if you have a mechanical breakdown insurance policy, you’ve been paying low monthly premiums in the event of just such an emergency, and all you’ll be responsible for paying is your deductible. This can be an especially big difference for you and your wallet if the part that needs repair or replacement turns out to be one of the “big ticket” items, such as a transmission, the engine, or the car’s computer. Given that an average transmission repair costs around $2,000, and it can run anywhere from $2,500 to $4,000 for an engine rebuild, having mechanical breakdown coverage for your car can make all the difference between being able to get your car repaired right away and having to bum rides from friends or take an Uber for the next couple of months.

Mechanical breakdown coverage is a completely optional, supplemental insurance, and is not meant to take the place of a traditional, required auto insurance policy. However, when you purchase a vehicle, it’s important to consider that even the best car on the market is bound to have an issue that needs repair every now and then. By choosing to invest in a mechanical breakdown policy, you are investing in peace of mind for those unforeseen, unexpected circumstances that tend to happen to everyone now and then.

If you’re interested in learning more about mechanical breakdown coverage, be sure to do your homework and select a reputable company with great reviews and an “A+” rating with the Better Business Bureau, so you know you will be receiving only the highest-quality service. Not all mechanical breakdown insurance is created equal, so make sure the policy you select fits your budget and makes sense as an investment. Mechanical breakdown coverage is that extra reassurance you need to help you over life’s little bumps in the road, so you can have smooth sailing on all your travels!

Alex Will