Dealing with car troubles is frustrating, especially when unexpected mechanical repairs pop up. As a car owner, you’re likely wondering, “Can you claim mechanical repair in car insurance?” It’s a common question, and the answer isn’t always straightforward. At Car Repair Online, we’re here to break down the complexities of car insurance and mechanical repairs, helping you understand your options and how to protect yourself from unforeseen auto repair costs.
While standard auto insurance is designed to cover damages from accidents, collisions, and other external events, it typically doesn’t cover mechanical breakdowns due to wear and tear or component failure. However, there’s a specific type of coverage that can help with these situations: Mechanical Breakdown Insurance (MBI), also sometimes known as car repair insurance.
This article will explore what Mechanical Breakdown Insurance is, how it works, what it covers, and how it differs from a typical extended warranty. We’ll provide you with the essential information to determine if MBI is the right choice to safeguard your finances against unexpected car repair bills.
How Mechanical Breakdown Insurance Works
Mechanical Breakdown Insurance is an optional add-on to your standard auto insurance policy, offering a safety net for those unexpected moments when your car decides to have a mechanical hiccup. Think of it as a specialized car repair insurance policy that kicks in when your vehicle experiences mechanical failures not related to accidents.
Eligibility: Typically, MBI is available for new or relatively new vehicles. For instance, GEICO’s Mechanical Breakdown Insurance generally requires your car to be less than 15 months old and have fewer than 15,000 miles on the odometer. Furthermore, you usually need to be the original owner of the vehicle to qualify for this coverage.
Coverage Period: Once you enroll in MBI, you can usually renew the policy for a significant period, often up to 7 years or 100,000 miles, whichever comes first. This extended coverage period can provide long-term peace of mind, knowing you’re protected against major mechanical failures down the road.
Deductible: Similar to other types of insurance, MBI typically involves a deductible. With GEICO’s MBI, you would generally pay a $250 deductible per covered repair. After meeting this deductible, your MBI coverage steps in to handle the remaining costs for eligible repairs.
What’s Covered? Mechanical Breakdown Insurance is designed to cover repairs to most of the original mechanical parts of your vehicle. This includes a wide range of potential issues, from engine and transmission problems to issues with your car’s electrical and air conditioning systems. It’s important to note that MBI is designed for unforeseen mechanical failures, not routine maintenance or wear and tear items.
To explore if Mechanical Breakdown Insurance is suitable for your vehicle, contacting an insurance specialist is always a good step. For example, you can call GEICO at (800) 861-8380 to learn more about their specific MBI offerings and eligibility requirements.
Delving Deeper: What Mechanical Breakdown Insurance Covers
Mechanical Breakdown Insurance is designed to be comprehensive, covering a wide array of potential mechanical failures. It acts as a crucial financial shield when your manufacturer’s warranty expires or doesn’t fully cover specific mechanical breakdowns. After you’ve paid your deductible, your MBI coverage takes the wheel, directly covering the remaining expenses for repairs that are included in your policy. This coverage extends across various vehicle types, encompassing cars, trucks, and SUVs, offering broad protection for vehicle owners.
Think about major components of your vehicle – the engine, transmission, drivetrain, steering, brakes, suspension, electrical system, and even air conditioning. MBI is often designed to cover breakdowns in these critical systems, providing substantial financial relief when things go wrong.
What Mechanical Breakdown Insurance Typically Doesn’t Cover
It’s equally important to understand the limitations of Mechanical Breakdown Insurance. Like any insurance policy, MBI has exclusions. Here’s what you can typically expect not to be covered:
- Routine Maintenance: MBI is not designed for regular upkeep. Expenses like oil changes, tire rotations, wheel alignments, and routine servicing are considered part of standard vehicle ownership and are not covered.
- Wear and Tear Items: Components that naturally wear out over time due to normal use are generally excluded. This includes parts like tires, brake pads, wiper blades, hoses, and belts. While the failure of a major system due to a manufacturing defect might be covered, the gradual wearing out of these parts is not.
- Damage from External Factors: MBI focuses on mechanical breakdowns. It does not cover damage caused by accidents, collisions, vandalism, natural disasters (like floods or hail), or other external events. These types of damages are typically addressed by your standard collision or comprehensive auto insurance coverage.
- Towing and Roadside Assistance: While MBI covers the repair of mechanical issues, it usually doesn’t include the cost of towing your vehicle to a repair shop if it breaks down. However, as mentioned in the original article, you can often add Emergency Roadside Service to your standard auto insurance policy for such situations. GEICO, for example, offers this as supplemental coverage.
Understanding these exclusions is vital to having realistic expectations about your MBI coverage and avoiding surprises when you need to make a claim.
Mechanical Breakdown Insurance vs. Extended Warranty: Understanding the Difference
When considering protection against car repair costs, you might encounter both Mechanical Breakdown Insurance and Extended Warranties. While they seem similar, there are key differences that can make MBI a more advantageous choice for many car owners.
Cost and Payment Structure: Extended warranties, often sold by car dealerships, typically require a large, upfront lump-sum payment. This can be a significant financial burden right from the start. In contrast, Mechanical Breakdown Insurance, like GEICO’s MBI, usually involves smaller premiums added to your regular auto insurance payments each policy period. This pay-as-you-go approach can be much more budget-friendly and predictable.
Scope of Coverage: Extended warranties often have limitations on what they cover, sometimes focusing only on a specific, reduced list of parts or systems. Mechanical Breakdown Insurance is generally more comprehensive, covering most mechanical parts and systems of your vehicle. This broader coverage offers more robust protection against a wider range of potential breakdowns.
Repair Shop Choice: Dealer extended warranties may restrict you to getting your car repaired at the dealership, potentially even the one where you purchased the vehicle. This can be inconvenient, especially if you move or prefer a different repair shop. MBI typically offers greater flexibility, allowing you to take your car to any licensed repair shop of your choice. This flexibility can be a significant advantage, especially if you have a trusted local mechanic or if you experience a breakdown while traveling.
Duration and Coverage Terms: Extended warranties have a fixed term and mileage limit set at the time of purchase. Mechanical Breakdown Insurance, like GEICO’s offering, can often be renewed for longer periods, such as up to 7 years or 100,000 miles, providing potentially longer-lasting protection.
In essence, Mechanical Breakdown Insurance often provides broader coverage, greater flexibility in repair shop choice, and a more manageable payment structure compared to traditional extended warranties. It’s worth considering MBI as a potentially superior option for protecting yourself from mechanical repair expenses.
Frequently Asked Questions About Mechanical Breakdown Insurance
To further clarify Mechanical Breakdown Insurance, let’s address some common questions:
Is it complicated to file an MBI claim?
No, filing an MBI claim is generally straightforward. For instance, GEICO MBI claim services can be reached at (800) 443-7411 during their claim hours (check their website for the most up-to-date hours). A crucial point to remember is that in most states, you typically need to obtain authorization before any repair work begins for the coverage to apply. Always review your specific policy details for the exact claims process.
Can I choose my own repair shop?
Yes, generally, with Mechanical Breakdown Insurance, you have the freedom to select any licensed repair shop. This is a significant advantage over some extended warranties that may limit you to dealership repairs. The exception is if the repair is covered by a recall, manufacturer’s warranty, or voluntary repair program, in which case you would need to take your vehicle to the appropriate dealer.
What happens if my car breaks down while I’m traveling?
If you have Emergency Roadside Assistance coverage in addition to your MBI (which is often recommended), you’re typically covered for breakdowns while traveling within the covered regions (e.g., the 50 U.S. states and District of Columbia for GEICO). Roadside assistance can help with towing and other immediate needs, and your MBI will handle the covered mechanical repairs once you get to a repair shop.
How do I pay for Mechanical Breakdown Insurance?
MBI is usually paid as an additional coverage on your regular auto insurance policy. This means you don’t have separate payments to manage. You can typically choose from various auto insurance payment plans, such as paying in full or using an installment plan, to fit your budget. This integration with your existing auto insurance payments simplifies the process compared to extended warranties, which often involve separate financing or upfront costs.
Does MBI cover both parts and labor costs?
Yes, Mechanical Breakdown Insurance is designed to cover both parts and labor for repairs that are deemed covered losses under your policy, after you’ve paid your deductible. If you have non-covered repairs needed at the same time, you can usually have them done at the same shop visit, but you will be responsible for the out-of-pocket costs for those non-covered items.
How does the deductible work?
The deductible is the amount you pay out-of-pocket per claim before your insurance coverage kicks in. For example, with a $250 deductible, if your repair bill is $2000, you would pay $250, and your MBI would cover the remaining $1750 for covered repairs.
What if I want a new part instead of repairing the old one?
In situations where repairing an old part is possible but you prefer a new replacement, your MBI coverage will generally cover the cost of the new part, but only up to the estimated cost of repairing the old part. You would be responsible for any additional expenses if the new part and its installation exceed the repair estimate for the original part.
Is a vehicle inspection required to activate MBI coverage?
No, typically, there’s no vehicle inspection required for Mechanical Breakdown Insurance to become active. However, it’s critical to understand that pre-existing mechanical issues are not eligible for coverage. MBI is intended for unexpected breakdowns that occur after your coverage starts.
Learn More About Protecting Yourself from Mechanical Repair Costs
Mechanical Breakdown Insurance can be a valuable tool for managing the financial risks associated with unexpected car repairs. If you’re interested in learning more or getting a quote for MBI, consider reaching out to your auto insurance provider.
You can also explore these resources for more information:
By understanding your options and considering Mechanical Breakdown Insurance, you can drive with greater confidence, knowing you have a financial safety net against unforeseen mechanical breakdowns.
