Driving a car is one of the most enjoyable things in life, but it certainly isn’t one of the cheapest. In fact, recent stats from the AAA show that the annual cost of car ownership has reached over $12,000. As a result, drivers across America are looking for ways to keep more money in their wallets, and seguro averia mecanica (MBI) is designed to help you do just that.

MBI is a special type of car insurance policy that covers repair costs if your vehicle experiences mechanical failure. This is distinctly different from liability car insurance coverage, which is legally required in most states and covers car repair costs due to accidents or natural disasters.

Your vehicle’s manufacturer may offer a mechanical breakdown insurance policy, but it’s also sometimes offered by insurance companies as an add-on (also known as a rider) to an existing policy. It’s also worth noting that MBI is currently solely offered in California — the only state in the US that has adopted regulations regarding this type of insurance.

Whether your car is new or used, MBI is an option you may want to consider. Let’s take a look at all the different factors at play so you can decide if MBI is right for you and your vehicle.

MBI for New Cars: Benefits and Considerations

Every brand new car rolls off the production line with what’s known as a factory warranty (or manufacturer’s warranty). This is the auto maker’s way of protecting their reputation by promising to repair or replace any components that fail due to fault within a predetermined number of years/miles traveled (whichever comes first). However long it lasts will depend on the generosity of your particular manufacturer, but the moment it expires, you, as the owner, will be financially responsible for any repair bills.

MBI is intended to plug that gap, covering the cost of repairs of component failure so you don’t have to pay for it. When your factory warranty has ended (or even when it’s still active), you can take out an MBI policy to ensure you’re protected for a longer period of time. This extended peace of mind is one of the main benefits of MBI because although newer vehicles are less likely to break down, there’s really no way of predicting when the worst might happen. And the more complex components found in modern cars can set you back hundreds — if not thousands — of dollars should they fail.

You may be surprised to hear mechanical breakdown coverage can also increase your vehicle’s resale value. Providers will stipulate that your manufacturer’s recommended maintenance schedule is followed to the letter for your policy to remain valid, keeping your vehicle in top running condition and making it more appealing to potential buyers. Any repairs that are carried out while your coverage is active will also be by certified mechanics using quality manufacturer-made parts, reassuring anyone who’s interested in your car.

Additional considerations for new car owners include:

• Factory warranty status: Your factory warranty will usually be split into parts, with some lasting longer than others. The bumper-to-bumper and powertrain elements are the most closely aligned with MBI, so it’s no use having both at the same time. Once one of these expires, however, it’s highly recommended that you take out some form of coverage to replace it — and MBI could be just the solution.
• Cost: MBI premiums can vary based on your car’s year, make, and mileage. Opt for a comprehensive plan, and what you receive in return should be well worth the coverage.

MBI for Used Cars: Benefits and Considerations

If you own a used car, it’s more than likely that it will no longer benefit from a factory warranty, so you should invest in some form of protection. The components in older vehicles will have seen their fair share of use, making them much closer to the point of failure. This, of course, increases the likelihood that they’ll break down.

Not only are these breakdowns a nuisance, causing you a lot of stress and wasting plenty of your time, but the financial implications are huge. With an MBI policy in place, there’s one major worry off your plate, as your provider will take care of any bills that you’re covered for. When the average cost of repairing a blown head gasket is between $1,937 and $2,245, that should be music to your ears.

Because used cars are all so different, there really isn’t a one-size-fits-all solution when it comes to extended coverage, but better MBI providers will be flexible in their approach. Taking your specific vehicle into consideration (as well as your personal circumstances), they should put together a policy that perfectly suits your needs.

Additional considerations for used car owners include:

• Vehicle age and condition: Older vehicles or those with higher mileage may be more expensive to cover as they’re more likely to suffer significant component failure. Providers may also be less willing to cover repairs on notoriously unreliable vehicles for the same reason.
• Pre-existing conditions: Your vehicle may have existing issues when you choose to take out an MBI, which providers will not be willing to cover. As a result, it’s hugely important you carry out a thorough vehicle inspection before purchasing coverage so that there are no nasty surprises later down the line.

Endurance MBI Coverage for California Drivers

Unlike the vast majority of our competitors, Endurance offers California drivers the option of MBI. There’s a wide range of MBI coverage levels to choose between, from powertrain to comprehensive. Policies come with flexible payment plans, and our 30-day money-back guarantee allows you to take yours for a test drive before you commit entirely. Vehicle repairs can also be carried out at the certified repair shop or dealership of your choice. Plus, you gain access to a fantastic suite of benefits, including Asistencia en carretera 24 horas al día, 7 días a la semana (including towing, fuel delivery, and lockout services), rental car reimbursement, and trip interruption costs.

Extended Warranties vs. Mechanical Breakdown Insurance

When it comes to protecting yourself from the rising cost of car ownership, your two main options are mechanical breakdown insurance or an extended warranty. The two are similar but most definitely different, with the majority of people ending up purchasing an extended car warranty based on the laws where they live. Let’s compare the two so you can decide which is best for your individual circumstances.

First, there are key differences in coverage and benefits. As technically an insurance policy, MBI provides coverage for certain mechanical components of your vehicle if they break down due to regular wear and tear. A deductible is usually required before coverage is activated, and only certain vehicle components will be protected. This coverage is exclusively available for California residents due to the state’s strict insurance regulations.

On the other hand, an extended warranty (also known as a contrato de servicio de vehiculo if purchased via a third-party provider) is an auto protection plan that covers repair bills related to mechanical breakdowns. Most U.S. states offer this type of coverage as an additional option on top of your auto insurance policy. The best extended warranty providers typically include additional benefits, whereas some MBI providers don’t – unless you choose Endurance for your MBI coverage.

Some MBI policies can be paired with your car insurance provider, and you may qualify for a bundle discount. However, quality third-party providers like Endurance offer flexible monthly or yearly payment plans with a choice of deductible options — ranging from $0 to $250. Prices will obviously vary depending on the make and model of your vehicle, its mileage, the provider you opt for, and the level of coverage.

The cost of an extended auto warranty or mechanical breakdown insurance policy varies as there are several coverage levels, but that means you can start as low or as high as you like. At Endurance, we have the flexibility to customize a plan for your specific needs and budget.

Making the Right Choice for Your Vehicle

So, what’s right for your vehicle? Only you can decide, but think about the following before you do:

1. Assess your needs: What you need and want from a coverage plan will depend on your specific circumstances. If your vehicle is newer, you may feel that MBI will be enough for the moment, as breakdowns are less likely to happen. If you own a high-mileage vehicle or use your vehicle more regularly (e.g., you’re a rideshare driver), you may get greater peace of mind from an extended warranty.
2. Evaluate your coverage options: Compare your preferred MBI options side by side and thoroughly weigh up what each offers. Find out exactly what is included/excluded, as well as any additional benefits. You’ll want to aim for the greatest possible value for money.
3. Plan your finances: Speaking of money, make sure to plan your finances before you put pen to paper. By taking the time to figure out a long-term budget, you can be sure you can comfortably afford whichever service you’re signing up for.

Whatever You Decide, Endurance Has You Covered

Ultimately, if you want to purchase mechanical breakdown insurance, it will be to save on out-of-pocket costs and for that extra peace of mind. Like any contract you might sign, there are a number of important factors to consider before you put pen to paper, and it isn’t a decision that should be rushed. Do your research, compare providers, and only commit when you are sure you’re ready.

The good news is if you’re a car owner in California, Endurance is happy to help. Exclusively for drivers in the Golden State, we offer numerous mechanical breakdown insurance policies to choose from, with the flexibility to tweak and change coverage and costs to suit your individual circumstances. Better yet, all Endurance contracts come with an unbeatable suite of standard benefits, including 24/7 roadside assistance, towing, lockout services, rental car reimbursement, and more.

Get in touch with an Endurance advisor at (800) 253-8203 to find out more or Solicite una cotización GRATIS! We also recommend checking out our extended warranty blog for more reading materials. Whether you’re looking for DIY maintenance tips, recommendations on the most reliable vehicles, or news on emerging automotive technology, you’ll find it all right there.