No, you do not need mechanical breakdown insurance on a lease. Mechanical breakdown insurance (MBI) is not required on a leased car, and it would only ever make sense to buy MBI if the manufacturer’s warranty is going to expire before the lease term ends.
Mechanical breakdown insurance covers repairs to your car’s main components, such as the engine and transmission. These parts are usually covered by the manufacturer’s warranty, which typically lasts for about three years or 36,000 miles.
While the warranty is still in effect, it’s not necessary to pay extra for mechanical breakdown insurance. But after the warranty ends, MBI could save you from having to pay out of pocket to repair your car’s major systems if they stop working correctly.
Before signing your lease, make sure you know when the vehicle’s warranty expires and what relevant stipulations the lease contract includes, so that you can purchase mechanical breakdown insurance if needed. Since mechanical repairs can cost thousands of dollars, mechanical breakdown insurance is a wise investment if the warranty no longer protects you. You can generally purchase it from your dealership or car insurance company if they offer it, and it only costs about $100 per year.
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