Mechanical breakdown insurance (MBI) is a car insurance add-on that covers failure of major vehicular systems, like your engine and transmission. Mechanical breakdown insurance is similar to an extended warranty from a car manufacturer, but it provides coverage for more systems. MBI is worth it if you’re buying a new car, as large non-collision repairs on new vehicles can be very costly and are usually covered only by extended warranties or MBI, not standard insurance policies.
Standard insurance policies, on the other hand, provide coverage for damage that occurs due to collisions, vandalism or unforeseen hazards, such as hail storms or floods. So, if you’re looking for insurance that will cover any major breakdown repairs your car might need, you will have to choose between purchasing MBI and an extended warranty.