Mechanical breakdown insurance, or MBI, is a type of coverage that helps protect you against the costs associated with repairing or replacing your vehicle’s mechanical systems and components. It covers repairs due to mechanical failures, such as a faulty transmission, engine, or brakes. It also alleviates the cost of parts, labor, and taxes associated with the repair or replacement of your car’s covered components.

Mechanical breakdown insurance is only offered in California because it is the only U.S. state that requires insurance companies to provide such coverage. MBI can also be provided by an auto protection plan or extended warranty company, like Endurance. California law is designed to help consumers by providing a form of protection from the costs associated with mechanical repairs.