Mechanical Breakdown Insurance: Is It Worth It?

By  //  April 28, 2020

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Once you’ve been adulting for a while, you begin to realize that there are a lot of essential-sounding products and services out there that really aren’t worth your time or money.

Once you’ve been adulting for a while, you begin to realize that there are a lot of essential-sounding products and services out there that really aren’t worth your time or money.

Sure, at first blush they sound like something that can add value to your life, but in the end, it turns out you would have been better off skipping that purchase.

If you’re not familiar with mechanical breakdown insurance, you may be wondering if it is one of those “nice to have, but not necessary” types of investments, or if purchasing a mechanical breakdown policy really is worth your while.

We’re here to help you decide if mechanical breakdown coverage is something that will really give you your money’s worth in the long run.

What Is Mechanical Breakdown Insurance?

Let’s back up for a second, because half of you probably just said, “Wait, mechanical breakdown insurance- that’s a thing?” Yes, it certainly is, and we’re going to explain exactly what it is and how it works right now!

Mechanical breakdown coverage is a special kind of supplemental insurance that you can purchase for your car. Unlike the auto insurance, you are required by law to have as a driver, this type of coverage is purely optional, though it can be advantageous for you to take the option.

However, and we can’t stress this enough, mechanical breakdown insurance is not intended as a substitute for traditional auto insurance- you absolutely need to have that if you have a car!

But where traditional auto insurance policies only cover damage sustained to your vehicle due to a collision or theft, mechanical breakdown insurance covers the repair or replacement of parts due to typical wear and tear. In other words, mechanical breakdown coverage helps make costly repairs much more affordable for car owners.

Because of this, mechanical breakdown coverage is also often confused with extended vehicle warranties from the vehicle’s manufacturer.

Extended warranties are actually either Mechanical Breakdown Insurance (in California) or a Vehicle Service contract (in the rest of the USA).

While it is possible to get an extended car warranty that covers repairs and part replacements, this often has extenuating circumstances, like car mileage, that limit which parts can be repaired or replaced under the warranty at no cost to the owner.

Also, extended warranties offered through auto dealerships often require an upfront payment at the time of purchase, rather than an affordable monthly premium payment, as mechanical breakdown coverage does.

When is Mechanical Breakdown Coverage Worth It?

Let’s say you are the owner of a vehicle that is six years old and has over 100,000 miles on it. If that vehicle’s transmission breaks down and needs to be replaced, you’re looking at an average of $2,500 out of pocket to fix it before you can drive your car again.

Even with a manufacturer’s warranty, with a high-mileage vehicle, you may find yourself out of luck! However, if you purchased mechanical breakdown coverage from a reputable company and are up to date on your monthly premium payments, all you’ll need to come up with is the deductible, and they’ll cover the rest.

This could mean a savings of hundreds-maybe thousands- of dollars, all because you were smart and thought ahead about the future of your car.

Here’s another scenario: you’ve had your car since you were old enough to drive- and it was old when you bought it! Your car needs a major part repair or replacement almost once a month on average, but it’s your baby and you love it.

With mechanical breakdown insurance, you’re looking at a lot less pain with each repair bill your mechanic presents to you, and you’re still able to keep your car running at its peak, whatever that may be, without having to break the bank every time it needs something else. 

Mechanical breakdown coverage can even come in handy when your car is brand-new! You know where you have to take your vehicle for repairs when it’s still on warranty?

That’s right- the dealership! While that can work well, you might have an auto repair center that is closer. With mechanical breakdown insurance, you can take your vehicle to any automotive repair center you choose.

The freedom and convenience afforded to you by mechanical breakdown coverage may make it extremely worthwhile for you to look into! Want to learn more? Read more here about whether you can buy an extended warranty on a used car in California.

If you think you may be interested in mechanical breakdown coverage for your vehicle, it’s best to look at reputable companies with high ratings and positive consumer reviews.

Investing in a mechanical breakdown insurance policy can help you afford repairs or part replacements that would have otherwise been devastating to both your car and to your wallet! In the long run, mechanical breakdown coverage can be extremely worthwhile to many drivers. Be sure to do your homework and choose the policy that’s right for you!