Not every car insurance provider offers this type of coverage, but here are a few that do:
Geico Mechanical Breakdown Insurance
If you have a new or leased car that’s less than 15 months old and has traveled less than 15,000 miles, try Geico’s mechanical breakdown insurance. The policies cover all systems and parts, and you have to pay a $250 deductible when you file a claim. You can renew a Geico MBI policy for up to 7 years/100,000 miles.
Progressive Mechanical Breakdown Insurance
Progressive MBI coverage is available for cars, trucks, SUVs, and RVs. You can choose deductible of $100, $250, or $500. Progressive allows you to pay for your MBI coverage in either monthly or annual payments. Covered repairs can be performed at any licensed service center in the U.S. or Canada.
Progressive mechanical breakdown insurance also comes with the following benefits:
- Trip interruption benefits for up to $100 per day for up to five days
- $60 per day for car rental reimbursement
Note that Progressive MBI is not available to residents of Indiana or New York.
Mercury Mechanical Breakdown Insurance
Mercury Insurance’s MBI coverage is available for new cars and used vehicles. It allows you to have your car repairs done at any licensed facility in the country, and you can transfer coverage to a new owner if you sell your vehicle.
Mercury’s mechanical breakdown insurance also comes with several benefits:
- 24-hour roadside assistance
- Rental car reimbursement
- Trip-interruption coverage
- Road hazard tire protection
Do You Need Mechanical Breakdown Insurance?
Even though MBI policies are mostly available for new cars, you may not need to buy this coverage immediately. New vehicles typically come with factory warranties that include two types of coverage:
- Bumper-to-bumper warranty: It covers nearly every car component, except for a small list in the contract. A common term length is 3 years/36,000 miles.
- Powertrain warranty: This only covers the basic mechanical components of your car, such as your engine, transmission, and drive axle. Many automakers’ coverage lasts 5 years/60,000 miles.
The costs of powertrain and bumper-to-bumper warranties are rolled into the price of your new car, so getting MBI coverage during this time means spending extra money for services your manufacturer’s warranty already gives you. In this case, it may be better to wait until right before your factory warranty expires and then compare MBI policies to extended warranties from the manufacturer or third-party warranty companies.
However, some MBI providers have time and mileage limits on when you can buy coverage. The advantage of buying an MBI policy early on is that it might last beyond your factory warranty’s term.