Everything You Need to Know About Mechanical Breakdown Insurance
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For drivers concerned about paying for an unexpected repair — whether because you’re low on savings or on a tight monthly budget — mechanical breakdown insurance (MBI) offers an additional financial cushion for a relatively affordable monthly cost. It’s cheaper than an extended warranty, too.
MBI is an optional coverage that offers car repair insurance for mechanical systems failures (air conditioning, electric, exhaust, etc.) due to faulty parts, defects, and other issues. But policies also come with some limitations.
Ultimately, only you can decide if an MBI policy is right for you — and this article provides everything you need to make that decision.
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What Is Mechanical Breakdown Insurance?
Mechanical breakdown insurance (MBI) is a type of car insurance that covers the repair cost of unexpected mechanical failures or breakdowns on new cars. MBI plans typically cover repairs or replacements of major mechanical components — such as the engine, transmission, and electrical system — due to defects or failures that aren’t caused by accidents.
For a small additional cost, MBI can provide peace of mind and financial protection against costly repair bills for vehicles outside the manufacturer’s warranty.
How Does Mechanical Breakdown Insurance Work?
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Policyholders pay an MBI premium to an insurance company agreeing to cover the costs to repair defects or other malfunctions. You can submit a claim to the insurer when your car breaks down. The insurer will assess the claim and issue payment (minus the deductible) up to coverage limits if the repairs are covered under your policy.
MBI is usually only available for cars under a specific mileage and age (i.e., MBI is typically not available for older vehicles). For example, GEICO only issues MBI policies to cars newer than 15 months old and with less than 15,000 miles. You can renew your policy for up to seven years or 100,000 miles, whichever happens first.
What does MBI cover?
Mechanical breakdown insurance covers breakdowns and mechanical failures of vehicle systems that aren’t covered by your warranty. The exact components covered will depend on the policy and insurer, but it’s common for an MBI policy to cover the following systems:
Brakes
Electrical systems
Emissions components
Engine components
Fuel systems
Steering systems
Suspension components
Transmissions
Some companies also include roadside assistance and rental car coverage with MBI insurance policies. But expenses like routine maintenance (tune-ups, alignment, fluid changes, tires, etc.) and breakdowns resulting from misuse, improper maintenance, and corrosion aren’t typically covered.
What’s the difference between MBI and an extended warranty?
MBI and extended car warranties (or vehicle service contracts) are similar but usually differ in what events or mechanical systems they cover. Coverage varies among policies and warranties, but all extend beyond what the typical manufacturer warranty covers. Both exclude routine maintenance and general wear and tear.
The main difference between the two products is the cost. ConsumerAffairs reports the average extended car warranty costs around $1,000 per year. MBI costs a fraction of that.
When choosing between the two, compare what’s covered and up to what amounts. It’s possible an extended warranty will offer you better coverage, which may make the higher price worth it.
Do You Need Mechanical Breakdown Insurance?
If you have concerns about covering unexpected repairs, mechanical breakdown insurance can offer you peace of mind. It’s a great option for people without emergency savings. Coverage is so inexpensive that a single claim can recoup all or most of that year’s premiums.
For example, replacing a faulty A/C compressor runs between $1,546 and $1,705, according to Kelley Blue Book (KBB). But many common repairs are only a few hundred dollars.
For some, coverage isn’t worth it. Mechanical breakdowns occur more often after a vehicle has more than 100,000 miles. Issues that occur before then often result from normal wear and tear or improper maintenance, which would exclude the repair from coverage.
Ultimately, it depends on what type of risk you feel comfortable taking. MBI can pay for itself if you end up needing a repair. But if you never make a claim over the course of your policy, you’ve most likely spent around $700 for unused coverage.
How Much Does Mechanical Breakdown Insurance Cost?
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Mechanical breakdown insurance costs range depending on several factors. Many policies cost around $100 per year (or roughly $8 per month), but it’s also worth considering the deductible amounts. The MBI deductible will typically range between $250 and $500, which you’ll pay out of pocket when you file a claim.
The final consideration is the indirect costs of making an MBI claim. While MBI claims don’t usually raise rates, you may see an increase if you lose a claims-free discount.
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Is mechanical breakdown insurance worth it?
MBI may be worth it for some drivers, but whether it’s right for you will depend on your specific needs, budget, and preferences. For some, the added peace of mind is worth the cost. Others prefer to save that money in a rainy day fund to cover the cost of unexpected car repairs.
A few things to consider when deciding if MBI is worth it to you include:
The average repair cost for your vehicle
Your budget and savings
The cost difference between an extended warranty and MBI
The Best Mechanical Breakdown Insurance Companies
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Mechanical breakdown policies differ from company to company. While premiums are usually inexpensive, some companies offer better coverage, while others have better customer service records.
Here are our favorite car insurance companies for MBI coverage.
| User Reviews | 3.5 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $76/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $144/mo |
3.5
A solid optionBased on 442 verified guest reviews and ratings
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.0 | 3.6 |
| Discounts | 4.4 | 2.9 |
| Policy transparency | 4.1 | 3.1 |
| Value | 3.8 | 2.9 |
How drivers feel about Allstate
Customers appreciate the insurer's efficient service and knowledgeable agents but find the consistently rising rates and lack of communication to be major drawbacks.
AI-generated from the text of verified reviews collected by Compare.com
Showing recent national reviewsSee all 177 Allstate reviews
Verified Review
Reviewed in Pennsylvania on March 17, 2026
Very easy to work with the agent, very good at their job. Prices could be better.
Verified Review
Reviewed in Texas on March 4, 2026
The price just keeps rising, which is really hard for seniors.
Verified Review
Reviewed in Kentucky on March 4, 2026
Easy to talk with and always available.
…
J.D. Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
636NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.02AM Best
AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A-Why we picked this company
Allstate covers your vehicle’s core systems and adds bonus coverage for roadside assistance, rental cars, rideshare, and trip interruption. It’s good until vehicles reach seven years old or 100,000 miles.
The company also earns higher-than-average customer satisfaction scores from J.D. Power.
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.6 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $87/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $143/mo |
3.9
A solid optionBased on 625 verified guest reviews and ratings
GEICO's score | Industry average | |
|---|---|---|
| Coverage options | 4.3 | 3.2 |
| Customer service | 4.2 | 3.6 |
| Discounts | 4.4 | 2.9 |
| Policy transparency | 4.4 | 3.1 |
| Value | 4.4 | 2.9 |
How drivers feel about GEICO
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
AI-generated from the text of verified reviews collected by Compare.com
Showing recent national reviewsSee all 270 GEICO reviews
Verified Review
Reviewed in Pennsylvania on March 23, 2026
The price kept going up and up with no reason as to why. I have no tickets, claims, accidents, no missed payments, no issues at all over all my years with them, but every 6 months I got an email saying the policy would cost more.
Verified Review
Reviewed in New York on March 15, 2026
Count on getting a rate increase every 6 months no matter how good your driving record is!
Verified Review
Reviewed in Florida on March 13, 2026
I've never had an accident with Geico, and I've been with them for a long time. However, they keep increasing my rates every 6 months.
…
J.D. Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
637NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.59AM Best
AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
GEICO offers long-term and robust MBI coverage — it covers “all parts and systems,” according to its website. But you must sign up when your car is relatively new and has low mileage. The company also offers cheap rates and boasts solid customer satisfaction ratings.
| J.D. Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 622 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.3 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $93/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $155/mo |
How drivers feel about Progressive
Customers appreciate the initial affordability and claim handling but dislike the frequent and unexplained rate increases, as well as the poor customer service.
AI-generated from the text of verified reviews collected by Compare.com
Showing recent national reviewsSee all 294 Progressive reviews
Verified Review
Reviewed in Florida on March 24, 2026
Very easy to deal with, especially over the phone. I found a lower rate online and contacted my insurance company, and they reworked my policy and saved me an additional $30 a month.
Verified Review
Reviewed in Washington on March 21, 2026
Premiums keep getting higher even though I've never had an accident or violation.
Verified Review
Reviewed in Massachusetts on March 14, 2026
Don't have a claim. If your claims specialist is out of work long term, for whatever reason, you could be told that no one will handle your claims issues until their return to work. If this is okay with you, then by all means, renew with Progressive. Otherwise, think long and hard about that.
…
J.D. Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
622NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.97AM Best
AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Progressive offers MBI coverage for both cars and RVs. Progressive Vehicle Protection for cars has flexible deductibles, travel protection, and transportation benefits and works with any repair shop in the U.S. and Canada.
The insurance giant also partners with Good Sam for mechanical breakdown insurance to protect RVs newer than 16 years old with less than 100,000 miles.
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 3.8 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $95/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $159/mo |
3.9
A solid optionBased on 24 verified guest reviews and ratings
Mercury Insurance's score | Industry average | |
|---|---|---|
| Coverage options | 3.5 | 3.2 |
| Customer service | 3.6 | 3.6 |
| Discounts | 3.0 | 2.9 |
| Policy transparency | 3.3 | 3.1 |
| Value | 3.4 | 2.9 |
How drivers feel about Mercury Insurance
Customers appreciate the quality of the coverage but find the premiums high, especially after a no-fault accident. Some feel the support could improve.
AI-generated from the text of verified reviews collected by Compare.com
Showing recent national reviewsSee all 11 Mercury Insurance reviews
Verified Review
Reviewed in California on October 24, 2025
We've been with Mercury for a long time and I don't have any complaints.
J.D. Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
596NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
Not ratedAM Best
AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
Not ratedWhy we picked this company
Mercury’s MBI policies have road-hazard tire protection, transferrable coverage, roadside assistance, rental vehicle coverage, and trip interruption coverage. You can also choose any U.S. repair provider.
But the company has lower-than-average customer satisfaction and is only available in 11 states.
Mechanical Breakdown Insurance FAQs
Mechanical breakdown coverage is relatively unknown in the car insurance world, so many drivers have questions about what it is and how it works. Here are answers to the most common questions about mechanical breakdown insurance.
What does mechanical breakdown insurance do?
Mechanical breakdown insurance covers the cost of repairs if your vehicle breaks down, has a mechanical problem, or needs replacement parts. Exact coverage details vary depending on the policy.
MBI is an optional insurance coverage.What’s considered a mechanical breakdown?
A mechanical breakdown refers to a failure or malfunction of a mechanical component or system in a vehicle. It can encompass various issues, such as engine failure, transmission problems, brake system malfunctions, electrical system failures, or anything that renders the car unusable or significantly impairs its performance.
Where can you buy mechanical breakdown insurance?
You can buy mechanical breakdown insurance from a car insurance company in many states. Sometimes the company will partner with a service center to offer coverage. In some states, including California, you can only purchase it from a contracted provider (typically a dealership).
Allstate, GEICO, Mercury, and other well-known insurance companies offer MBI coverage to their policyholders.Does car insurance cover a blown engine?
No. Neither comprehensive nor collision car insurance covers a blown engine, but mechanical breakdown insurance usually does. Review your car insurance policy to understand better what is and isn’t covered.
Sources
J.D. Power, “2023 U.S. Auto Insurance Study,” Accessed February 18, 2024.
Kelley Blue Book, “Car A/C Repair Costs,” Accessed February 18, 2024.
California Department of Insurance, “Vehicle Service Contracts: Extended Warranties & Other Repair Agreements,” Accessed February 18, 2024.
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J.J. StarrInsurance Writer
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