Car breakdowns are a headache every driver dreads. Beyond the inconvenience, the unexpected repair bills can significantly strain your finances. While car warranties offer initial protection, their expiration can leave you vulnerable to hefty out-of-pocket expenses as your vehicle ages. This is where car repair insurance, also known as mechanical breakdown insurance (MBI), steps in as a potential safety net. Progressive, a well-known name in the insurance industry, offers car repair insurance. But how good is Progressive auto repair insurance, and is it the right choice for you? This article delves into a comprehensive review to help you decide.
Understanding Car Repair Insurance: The Basics
What is Mechanical Breakdown Insurance (MBI)?
Mechanical breakdown insurance (MBI), or car repair insurance, is designed to cover the costs of unexpected mechanical and electrical repairs to your vehicle. Unlike standard auto insurance, which covers damages from accidents, theft, or weather events, MBI focuses on failures of vehicle components due to defects, not wear and tear or collisions. Think of it as an extended warranty, but offered by insurance companies.
Progressive offers Mechanical Breakdown Insurance as an add-on in some states or as a standalone policy through Good Sam for vehicles and RVs, highlighting its commitment to providing options for various vehicle owners.
MBI vs. Standard Car Insurance: Key Differences
It’s crucial to differentiate MBI from your regular car insurance. A typical full coverage auto policy includes:
- Collision Coverage: Pays for damage to your car resulting from an accident.
- Comprehensive Coverage: Protects against theft, vandalism, weather damage, and other non-collision events.
- Liability Coverage: Covers damages and injuries you cause to others in an accident.
Car repair insurance, on the other hand, does not cover these accident-related damages. Instead, it acts as a supplementary layer of protection, specifically targeting mechanical failures that occur outside of accident scenarios. As Cassie Sheets, a data journalist at Insurify, points out, “Car repair insurance doesn’t cover the same things as collision or comprehensive insurance. It works as an addition to a standard policy rather than a replacement.”
MBI vs. Extended Warranties: What’s the Difference?
Extended warranties, often offered by dealerships or third-party companies, serve a similar purpose to MBI – covering mechanical and electrical repairs after the original manufacturer’s warranty expires. However, there are key distinctions:
- Payment Structure: Extended warranties often require a large upfront payment, while MBI, like Progressive’s offerings, typically allows for monthly payments that can be canceled.
- Cost: MBI can sometimes be more affordable than extended warranties, with some policies starting as low as $10 per month, according to Sheets.
- Flexibility: MBI policies are generally more flexible, allowing for cancellation, unlike some extended warranties.
Both MBI and extended warranties aim to protect you from repair costs arising from manufacturing defects or component failures, excluding normal wear and tear and neglect. Deciding between them often depends on your budget, risk tolerance, and vehicle’s specific needs. Progressive’s MBI provides a flexible, pay-as-you-go alternative to traditional extended warranties.
Decoding MBI Coverage: What’s Included and Excluded
What Progressive’s Car Repair Insurance Typically Covers
Progressive’s Mechanical Breakdown Insurance, like most MBI policies, is designed to cover a range of potential mechanical failures. This typically includes defects in major systems such as:
- Engine: Internal components, engine block, cylinder head.
- Transmission: Automatic and manual transmission components.
- Drive Axle: Components of the front, rear, and four-wheel drive systems.
- Air Conditioning and Heating: Compressor, condenser, evaporator, and related parts.
- Electrical System: Alternator, starter, wiring, and electronic control units.
- Fuel System: Fuel pump, fuel injectors, and fuel lines.
- Steering and Suspension: Power steering pump, struts, shocks, and control arms.
- Braking System: Master cylinder, power brake booster, and anti-lock brake components.
It’s important to note that coverage details can vary depending on the specific Progressive MBI policy and state regulations. Always review the policy documents thoroughly to understand the exact scope of coverage.
Common MBI Exclusions to Consider
While MBI provides broad coverage, it’s crucial to understand what is typically not covered. Common exclusions across most providers, including potentially Progressive, include:
- Wear and Tear: Parts that naturally wear out over time, like brake pads, tires, and belts.
- Maintenance: Routine services such as oil changes, tune-ups, and filter replacements.
- Accident Damage: Repairs resulting from collisions or other incidents covered by standard auto insurance.
- Pre-existing Conditions: Problems that existed before the MBI policy was purchased.
- Neglect or Misuse: Damage caused by lack of maintenance or improper vehicle operation.
- Cosmetic Damage: Dents, scratches, or paint issues that don’t affect mechanical function.
- Certain Vehicle Types: High-performance, luxury, or collectible cars may be excluded or have limited coverage.
- Aftermarket Parts: Non-original equipment manufacturer (OEM) parts may not be covered.
Understanding these exclusions is vital to assess whether Progressive’s MBI aligns with your needs and expectations. For instance, if you’re primarily concerned about wear-and-tear items, MBI is not designed to cover those.
Is Progressive Car Repair Insurance Right for You? Factors to Evaluate
Eligibility: Age and Mileage Limits
Before considering Progressive MBI, check if your vehicle qualifies. Eligibility typically hinges on your car’s age and mileage. Progressive, through Good Sam, generally offers MBI for vehicles and RVs up to 15 years old with less than 100,000 miles (or 120,000 for rear-engine diesel RVs). For newer cars with full auto coverage in specific states, Progressive Vehicle Protection might be available as an add-on.
These eligibility criteria are crucial. If your car exceeds these limits, Progressive MBI might not be an option. Always verify the specific eligibility requirements directly with Progressive or Good Sam, as they can change.
Policy Features: Comparing Progressive’s Offering
If your car is eligible, delve into the specifics of Progressive’s MBI policy. Key factors to compare include:
- Coverage Scope: Reconfirm the list of covered parts and systems. Is it comprehensive enough for your vehicle’s potential failure points?
- Claims Process: How does Progressive handle claims? Is it reimbursement-based, or do they pay the repair shop directly? Direct payment is generally more convenient.
- Deductible Options: What deductible choices are available? Lower deductibles mean higher premiums, and vice versa. Choose a deductible you’re comfortable paying out-of-pocket.
- Additional Benefits: Does Progressive MBI include perks like rental car reimbursement or roadside assistance? These extras can add value to the policy.
Progressive is known for its flexible options and customer service. Investigating these policy features will help you gauge the “goodness” of Progressive auto repair insurance for your individual circumstances.
Financial Stability and Customer Satisfaction
When evaluating any insurance provider, including Progressive, consider their financial strength and customer satisfaction ratings. Resources like AM Best provide financial stability ratings, indicating a company’s ability to pay claims. A strong rating suggests reliability.
Customer reviews and satisfaction surveys, like J.D. Power’s rankings, offer insights into real-world customer experiences. While satisfaction can vary regionally, these rankings provide a comparative perspective on different insurers, including Progressive. Positive customer feedback and financial stability are indicators of a reputable and dependable insurance provider.
Progressive MBI: Costs, Premiums, and Potential Savings
Understanding Progressive MBI Premiums and Deductibles
The cost of Progressive car repair insurance, like all MBI policies, depends on several factors, including:
- Vehicle Age and Mileage: Older, higher-mileage cars typically have higher premiums due to increased repair risk.
- Vehicle Type: Trucks and RVs may have different premium structures than passenger cars.
- Coverage Level: More comprehensive coverage might lead to slightly higher premiums.
- Deductible Amount: Higher deductibles result in lower premiums.
Premiums for MBI generally range from $100 to $500 per year for newer cars, but this can fluctuate. Progressive offers various deductible options, allowing you to customize your premium. You can often integrate MBI premiums into your existing Progressive auto policy payments for convenience.
Calculating Potential Savings with Progressive MBI
To assess the potential financial benefit of Progressive MBI, consider this scenario: You pay $200 annually for Progressive MBI with a $250 deductible. After a year, your car’s transmission fails, and repairs cost $3,000.
Without MBI: You pay $3,000 out-of-pocket.
With Progressive MBI: You pay your $250 deductible, and Progressive covers the remaining $2,750.
In this example, you save $2,750 by having Progressive MBI, far exceeding the cost of your premiums and deductible. While not every year will bring a major breakdown, MBI provides financial protection against these potentially expensive events. Ezra Peterson, Senior Director of Insurance at Way.com, emphasizes, “Vehicle age and mileage are essential rating factors, as repair frequency tends to rise as mileage accrues, while newer cars may have operating systems that are incredibly complex and expensive to repair.”
Filing a Claim with Progressive Car Repair Insurance
Step-by-Step Claims Process
Filing a claim with Progressive MBI generally involves these steps:
- Vehicle Inspection: Take your car to a licensed mechanic for diagnosis and repair estimate.
- Obtain Estimate: Get a detailed repair estimate outlining parts and labor costs.
- Contact Progressive: Notify Progressive’s claims department about the issue. They may want to speak directly with your mechanic.
- Claim Authorization: Progressive reviews the estimate and authorizes covered repairs.
- Repair and Payment: The mechanic completes the repairs. Progressive typically pays the repair shop directly, minus your deductible.
The specific process might vary slightly, so always refer to your Progressive MBI policy documents for detailed claim instructions.
Necessary Claim Documentation
When filing a Progressive MBI claim, you’ll typically need:
- Your Progressive MBI policy information.
- The mechanic’s inspection report and repair estimate.
- Vehicle information (VIN, mileage).
Having this documentation readily available will streamline the claims process. Progressive aims for efficient claims handling, but prompt communication and accurate documentation are key to a smooth experience.
Pros and Cons of Progressive Auto Repair Insurance
Advantages of Progressive MBI
- Financial Protection: Shields you from potentially large, unexpected repair bills.
- Peace of Mind: Reduces anxiety about car breakdowns, especially for older vehicles.
- Budget Predictability: Monthly premiums offer predictable expenses compared to unpredictable repair costs.
- Flexibility: Progressive MBI often offers monthly payment options and cancellation flexibility.
- Potential Cost Savings: In the event of a major repair, savings can significantly outweigh policy costs.
Potential Downsides of Progressive MBI
- Cost of Premiums: Premiums are an added expense, even if they are relatively low.
- Exclusions: MBI doesn’t cover everything; wear and tear and maintenance are excluded.
- Claim Denials: Claims can be denied if the issue is due to neglect or excluded factors.
- Not Always Necessary: If you have a new car under warranty or substantial savings, MBI might be redundant.
- “Worth It” Depends on Vehicle: The value proposition is higher for vehicles prone to breakdowns or with a history of costly repairs.
As Cassie Sheets advises, “Depending on your premium, car repair insurance also might not make sense financially. If you can put that money into savings and come up with enough to pay for most repairs, your personal mechanical breakdown insurance premium is probably too high to justify the policy.”
Conclusion: Is Progressive Car Repair Insurance a Good Choice?
Progressive auto repair insurance, or Mechanical Breakdown Insurance, can be a valuable tool for managing the financial risks associated with vehicle repairs. It’s particularly beneficial for owners of vehicles past their factory warranty, those who rely heavily on their car, or those who prefer predictable monthly expenses over the uncertainty of repair bills.
However, it’s not a one-size-fits-all solution. If you drive a new car with an active warranty, have robust savings, or are diligent about routine maintenance and drive a reliable model, Progressive MBI might be less critical.
To determine if Progressive car repair insurance is “good” for you, consider:
- Your Vehicle’s Age and Mileage: Older, higher-mileage cars benefit most.
- Your Risk Tolerance: Are you comfortable with potential large, unexpected repair bills?
- Your Budget: Can you comfortably afford the monthly premiums?
- Policy Coverage Details: Does Progressive’s MBI offer the coverage you need at a competitive price?
By carefully weighing these factors and comparing Progressive’s MBI offering to your individual circumstances, you can make an informed decision about whether it’s a worthwhile investment for your peace of mind and financial security on the road.
Frequently Asked Questions About Car Repair Insurance
Is car repair insurance worth it?
Auto repair insurance can be worth it, especially for older or high-mileage vehicles, providing a financial safety net against unexpected breakdowns. Consider your car’s reliability and your risk tolerance.
How do I know if I’m eligible for car repair insurance?
Eligibility requirements vary by insurer. Generally, vehicles must be below a certain age and mileage threshold. Contact Progressive directly to check your vehicle’s eligibility.
Does car repair insurance cover routine maintenance?
No. Car repair insurance, including Progressive MBI, does not cover routine maintenance like oil changes, tire rotations, or tune-ups. It’s designed for unexpected mechanical breakdowns.
Can I purchase car repair insurance for a used car?
Yes, you can typically purchase car repair insurance for used cars, provided they meet the insurer’s age and mileage criteria. Progressive offers MBI for eligible used vehicles.
What should I look for in a car repair insurance policy?
Key factors include coverage scope, exclusions, deductible options, claims process, customer reviews, and the insurer’s financial stability. Compare Progressive’s policy details with other providers to find the best fit for your needs.
Tanza Loudenback Tanza Loudenback is a personal finance expert and a Certified Financial Planner (CFP). She was the founding reporter of Personal Finance Insider, covering topics including taxes, retirement planning, banking, real estate and mortgages, and budgeting. Her work has been featured in WSJ Buy Side, Fortune Recommends, Korn Ferry, TheStreet, Morgan Stanley Wealth Management, and Fidelity. ExperienceTanza was the first reporter on the Personal Finance Insider team. In addition to helping build the vertical from the ground up, she helmed a biweekly advice column answering readers’ personal finance questions and launched a personal finance newsletter. She also published two e-books under the Personal Finance Insider brand.She was the editorial lead on Master Your Money series, a two-year-long Business Insider series providing financial advice to millennials. She managed Master Your Money bootcamp events over the course of the series. While at BI, she also expanded tax coverage to include a guide to the best tax software and commissioned a panel of experts to review all articles. Tanza obtained her CFP license in 2020. She aims to simplify personal finance concepts for readers so that they can make smart decisions with their money. ExpertiseTanza’s areas of personal finance expertise include:- Real estate/mortgages
- Taxes
- Retirement planning
- Small business finances
- Banking
- Budgeting
Education Tanza is a graduate of Elon University with a degree in print and online journalism, with a minor in Italian studies.
