Mechanical Breakdown Insurance

An extended car warranty costs $1,500 on average. The cost of an extended car warranty can be anywhere from $1,000 to $5,000 depending on several factors, including the condition of the car, the car's mileage, and the amount of coverage included in the warranty.

An extended car warranty pays for repairs to a car's major systems if they malfunction. If you drive an older car or a car with higher mileage, your warranty will be more expensive because your car is more likely to experience mechanical problems. Similarly, the more coverage that you include in your warranty, the more you're going to pay.

If you want to purchase an extended warranty for your car, you should get quotes from multiple sources in order to find the best price. You can purchase an extended warranty from your car's manufacturer or a third-party company, and the pricing is generally the same between the two. However, customer satisfaction tends to be higher for warranties from the manufacturer.

Many insurance companies also offer an alternative to extended warranties called mechanical breakdown insurance (MBI). MBI provides similar coverage and only costs about $100 per year.

Yes, Geico offers mechanical breakdown insurance for new or leased cars that are less than 15 months old and have less than 15,000 miles on them. Geico mechanical breakdown insurance (MBI) is a policy add-on that insures a vehicle against mechanical problems, such as transmission or engine failure, which are not covered by standard car insurance policies.

However, mechanical breakdown insurance will not pay for routine maintenance, wear and tear, or damage caused by an accident. Other exclusions to Geico mechanical breakdown coverage include tune-ups, wheel balancing, and suspension balancing, among others.

Geico Mechanical Breakdown Insurance Cost

The cost of Geico mechanical breakdown insurance varies depending on the car, but the average MBI policy costs around $100 a year. Customers will also need to pay a deductible of $250 before Geico MBI goes into effect.

Mechanical breakdown insurance from Geico is a good alternative to an extended warranty from the vehicle manufacturer, which might provide the same type of coverage but will usually cost around $1,500 total. For more information on whether Geico MBI is worth it, check out WalletHub's complete guide to mechanical breakdown insurance.

No, traditional car insurance does not cover ordinary repairs or maintenance to your car. If your car is covered by comprehensive insurance, your insurance company will cover mechanical repairs caused by a car accident, natural disasters, or other unforeseeable events.

Insurance companies do offer a type of coverage that policy holders can use for repairs. This coverage is called mechanical breakdown insurance (MBI), or repair insurance. MBI is offered by some insurance companies and comes with a deductible. MBI deductibles tend to be low, and in the event your car needs major mechanical repairs, this type of coverage could save you thousands of dollars. It usually covers repairs to your vehicle's engine, drivetrain, transmission, brakes, exhaust and power system.

With many policies, MBI coverage cannot be used for car maintenance, or for tire replacement, coolant replacement or other minor repairs. It's also important to keep in mind that some insurance companies that offer MBI only do so for newer models and vehicles under a certain mileage.

If you're considering purchasing MBI coverage, it's a good idea to carefully read the provider's policy in order to understand required qualifications for and limitations of the offered coverage.

No, gap insurance does not cover engine failure. Gap insurance only covers the difference between an auto loan or lease balance and the vehicle's value, and it only covers that gap if the car is totaled in an event covered by comprehensive or collision insurance, or by the at-fault driver's liability insurance.

Although gap insurance does not cover engine failure directly, it does apply when a car is  totaled. Furthermore, engine damage from a crash or an event covered by comprehensive insurance could contribute to the “totaled” designation. So, gap insurance could indirectly cover engine failure, assuming that's not the only issue.

If you're looking for car insurance that covers engine problems unrelated to an accident or comprehensive claim, you'll need to purchase specialized coverage like mechanical breakdown insurance or an extended warranty.

For more information, check out WalletHub's guides to gap insurance and car repair insurance.  

No, Progressive does not offer mechanical breakdown insurance. Mechanical breakdown insurance (MBI) is a specialty type of car insurance coverage that is only available from some insurers, and it pays for repairs that are not related to routine maintenance, wear and tear, or an accident. For instance, MBI often pays for transmission failure or engine problems.

The cost of mechanical breakdown insurance varies depending on the car, but the average MBI policy costs about $100 per year. Consequently, mechanical breakdown insurance is a good alternative to an extended car warranty, which typically costs around $1,500 total.

Although Progressive does not sell mechanical breakdown coverage, drivers can purchase MBI from companies such as Geico. For more information, check out WalletHub's complete guide to mechanical breakdown insurance.

No, State Farm does not offer mechanical breakdown insurance. Mechanical breakdown insurance (MBI) is a specialty type of car insurance coverage that is only available from some insurers, and it pays for repairs that are not related to routine maintenance, wear and tear, or an accident. For instance, MBI often pays for transmission failure or engine problems.

The cost of mechanical breakdown insurance varies depending on the car, but the average MBI policy costs about $100 per year. Consequently, mechanical breakdown insurance is a good alternative to an extended car warranty, which typically costs around $1,500 total.

Although State Farm does not sell mechanical breakdown coverage, drivers can purchase MBI from companies such as Geico. For more information, check out WalletHub's complete guide to mechanical breakdown insurance.

Mechanical repair coverage is an extended car warranty package that pays for repairs after a vehicle experiences mechanical failure. Mechanical repair coverage specifically applies to the basic systems of the car, including the engine, transmission, brakes, and steering. It does not cover normal wear and tear or general upkeep, such as oil changes or battery replacement.

Mechanical repair coverage plans are similar to mechanical breakdown insurance, except drivers buy mechanical repair coverage from an independent provider, like a credit union, instead of an insurance company. When you purchase a mechanical repair coverage plan, you will pay a premium just like you would for a regular car insurance policy. Then, if your car has a mechanical failure and needs to be repaired down the line, you will only have to pay your deductible, which is usually no more than $250.

The cost of mechanical repair coverage depends on what kind of car you drive, what state you're in, and how much coverage you purchase. Most vendors offer different levels of coverage, with more expensive options providing broader protection. For example, a high-end plan might include safety and security systems in its coverage.

No, car insurance does not cover mechanical problems unless you carry mechanical breakdown insurance. Mechanical breakdown insurance is a policy add-on that covers the failure of major vehicle systems such as the engine or transmission.

Standard car insurance policies do not provide this coverage, so if you don't purchase mechanical breakdown insurance, you will have to pay for the repairs yourself. Several major insurance companies, including Geico and Allstate, offer mechanical breakdown insurance, which only costs about $100 annually.

It should also be noted that while mechanical breakdown insurance pays for system failures, it does not pay for major repairs related to normal maintenance or wear and tear.

No, USAA does not offer mechanical breakdown insurance. Mechanical breakdown insurance (MBI) is a specialty type of car insurance coverage that is only available from some insurers, and it pays for repairs that are not related to routine maintenance, wear and tear, or an accident. For instance, MBI often pays for transmission failure or engine problems.

The cost of mechanical breakdown insurance varies depending on the car, but the average MBI policy costs about $100 per year. Consequently, mechanical breakdown insurance is a good alternative to an extended car warranty, which typically costs around $1,500 total.

Although USAA  does not sell mechanical breakdown coverage, drivers can purchase MBI from companies such as Geico. For more information, check out WalletHub's complete guide to mechanical breakdown insurance.

No, car insurance does not cover engine repairs unless you have mechanical breakdown insurance or the damage is the result of a covered cause, such as a car crash. Mechanical breakdown insurance is a car insurance policy add-on that covers the failure of major vehicle systems, including the engine.

Even mechanical breakdown insurance (MBI) is not guaranteed to cover engine repairs. MBI covers engine repairs after sudden failure, but it does not pay for repairs related to normal maintenance or wear and tear. If you do not have mechanical breakdown insurance, however, you will usually have to pay for the repairs yourself. Several major insurance companies, including Geico and Allstate, offer mechanical breakdown insurance for about $100 annually.

When Standard Car Insurance Covers Engine Repairs

If you don't have mechanical breakdown insurance, there are only two scenarios in which a car insurance company would cover engine problems. If the engine failure is the result of a car accident, then you can file a claim with your collision insurance to fix the damage. And if the failure was directly caused by something other than an accident, such as an animal or a natural disaster, then it should be covered by comprehensive insurance.

For newer vehicles, sudden engine failure is usually covered by the manufacturer's warranty. The manufacturer's warranty pays for major mechanical repairs on a vehicle for a certain period of time, usually until the car is three years old or drives 36,000 miles. Mechanical breakdown insurance, which can be thought of as a car insurance company's version of an extended warranty, only applies once the original warranty expires. 

To learn more, check out WalletHub's guides to mechanical breakdown insurance and car repair insurance.