It’s a common question among car owners: “Can my car insurance company pay for my repair?” The answer isn’t always straightforward, as it largely depends on the type of damage and your insurance coverage. While standard auto insurance is designed to cover damages from accidents, collisions, or theft, it typically doesn’t extend to mechanical failures or wear and tear. However, there’s a specific type of coverage known as Mechanical Breakdown Insurance (MBI) that can help with those unexpected repair bills.
Mechanical Breakdown Insurance, often referred to as MBI, is an optional coverage that can be added to your car insurance policy. It’s designed to cover repairs that arise from mechanical breakdowns, meaning failures of your vehicle’s systems and parts. Unlike collision coverage, which pays for damage from accidents, MBI steps in when your car experiences issues like engine trouble, transmission failure, or problems with the electrical system – issues not related to an accident.
Several reputable insurance companies offer MBI. Here are a few examples highlighted for their strengths:
Geico: Top Pick for Budget-Conscious Drivers
Better Business Bureau (BBB) Rating: A+
AM Best Financial Strength Rating: A++
Geico stands out for its strong customer service and excellent financial stability. Their MBI plans are available for new and leased cars that are under 15 months old and have less than 15,000 miles. Once you purchase MBI from Geico, renewals are possible for up to 7 years or 100,000 miles. After a $250 deductible, Geico covers the costs of repair, including parts and labor, when you experience a mechanical breakdown.
Progressive: Best for Tech-Savvy Car Owners
BBB Rating: A
AM Best Financial Strength Rating: A+
Progressive provides MBI in most states, excluding Indiana and New York. Their mechanical repair insurance comes with additional perks like $100 per day for trip interruption and $60 daily for rental car expenses while your car is being repaired. You have deductible options ranging from $100 to $500 and can choose between monthly or annual payments. Progressive also allows you to secure your MBI rate for up to three years.
American Family: Ideal for Family-Focused Policies
BBB Rating: A
AM Best Financial Strength Rating: A
American Family partners with ForeverCar to offer mechanical breakdown coverage through a vehicle service contract. These plans are subscription-based, typically costing between $45 and $75 per month. You can select any repair shop and might have a deductible up to $250 per service. ForeverCar plans, offered through American Family, provide extensive coverage, including nearly all vehicle parts up to 105,000 miles, and powertrain coverage up to 225,000 miles. Furthermore, American Family auto policyholders often receive discounts on ForeverCar plans.
In conclusion, while your standard car insurance may not cover typical car repairs resulting from mechanical issues, Mechanical Breakdown Insurance is designed precisely for that purpose. Companies like Geico, Progressive, and American Family offer robust MBI options, each with unique benefits and coverage levels to suit different driver needs and budgets. If you’re concerned about unexpected repair costs due to mechanical failure, exploring MBI could provide valuable financial protection and peace of mind.
