Things to Know about Mechanical Breakdown Insurance

In the event that you are involved in an accident, your car is damaged by a storm, or even if your car is stolen, traditional auto insurance can help you cover the costs associated with these mishaps. However, what happens if your car breaks down on the side of the road? Unfortunately, if your automobile is no longer under warranty, you may be left to cover these expenses on your own unless you’ve purchased mechanical breakdown insurance.

What Is It?

Mechanical breakdown insurance is purchased separately from your traditional auto insurance. There are several different types of entities that offer it, including car insurance companies, third party entities, automobile dealers and even the financial institution through which you financed your loan. For all of these companies, and for you, it is often in your best interest to purchase this insurance because it negates the possibility that you will stop making payments simply because you’re unable to drive your automobile due to a blown engine or failed transmission.

What It Does

There are a few things that you should be sure to understand before you purchase mechanical breakdown insurance. First and foremost, it won’t cover normal wear and tear on your vehicle. Similarly, the company providing the insurance may want you to prove that you’ve kept up with regular maintenance, so hanging onto those oil change and tire rotation receipts might not be a bad idea. Finally, keep in mind that there are different levels of coverage that can be purchased. A bare minimum plan may only cover certain essential parts, but a full-coverage plan may pay for any repair at all – including failure of the motor or transmission. Some policies even pay for towing, lock-outs and roadside assistance, too.

Factors Affecting Cost

With so many different options out there and so many types of vehicles on the road, pinpointing an average cost is difficult. These policies run anywhere from hundreds to thousands of dollars annually depending upon the age of your vehicle, the number of miles put on it, and the level of coverage you select. All in all, if you have a newer car that is driven fewer than 200 or 300 miles a month, you’ll get a better rate than someone who has an older car that is driven thousands of miles per month.

Does It Affect Auto Insurance Costs?

Perhaps the greatest thing about mechanical breakdown insurance is that filing a claim will not affect either the premium for the breakdown insurance or the premium for your standard automobile insurance. However, if necessary repairs are due to an accident, these claims must be filed with your insurance provider and not as a mechanical breakdown. In fact, some auto insurance providers may even provide discounts to those who have this coverage because your automobile is safer for you and for others if it is kept in good working order.

If you are considering mechanical breakdown insurance, be sure to compare it to your warranty if it hasn’t expired, find out what repairs are covered and which are excluded, and also make sure that the policy covers the mechanics you trust to repair your vehicles.