FAQ: What does mechanical breakdown insurance cover?

Mechanical breakdown insurance (MBI) is an extended service contract that covers the cost of repairing or replacing parts of a vehicle that experiences a mechanical breakdown. This type of insurance typically covers the cost of parts and labor associated with repairs caused by a mechanical failure. This coverage can be provided by an auto dealership or a third-party insurer, and it can be purchased separately from a standard auto insurance policy.

In general, MBI covers the cost of repairing or replacing certain components of a vehicle, such as the engine, transmission, suspension, fuel system, brakes, air conditioning, heating, electrical system, and other major components. The coverage may also include towing and rental car reimbursement, depending on the insurer.

MBI usually does not cover damage caused by accident, abuse, neglect, or worn-out components due to normal wear and tear. It may also not cover the cost of preventive maintenance, such as oil changes or tune-ups. This coverage may also include roadside assistance and other services, such as trip interruption coverage, which helps cover the cost of lodging and meals if your car breaks down while you’re on a trip.

When considering mechanical breakdown insurance, it’s important to carefully review the terms and conditions of the policy to understand exactly what is and isn’t covered. Doing so will help you determine the right option for you and your vehicle.

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