Mechanical breakdown insurance is also known as auto repair insurance. It does not cover the cars normal wear and tear but it covers you in the event of your car breaking down from anything unrelated to an accident which is why it’s different from collision coverage.
It is like most other insurance in the sense that you can choose the level of coverage that you need for your specific car, even if your cars warranty has finished you could still be covered by the mechanical breakdown insurance. The question is what does it normally cover?
• Engine parts
• Electrical components
This is where it slightly differs from a car warranty. Although here we are also talking about the potential breakdown of ‘parts’ of the car it is more tailored to mechanical aspects of the parts of the car. Unlike like the warranty having mechanical breakdown cover may also enable you to cover any modifications you have made to your vehicle. You can also get the best out of your insurance plan as most offer to pay for the towing of the car (depending in distances), if you need any rental car cover, 24 hour roadside assistance and a lock-out service. Meaning if you have locked your keys in the car and do not have a spare set they will send someone out to unlock your vehicle to get the keys out.
The Pros and Cons of Mechanical Breakdown Cover
• You will always have the peace of mind that even if your warranty is finished, the insurance covers most repairs that would need to be done on your vehicle.
• You don’t have to worry about paying for accommodating a towing company, or any extra service companies as this is all covered.
• Every issue is handled by the insurance company itself.
• You don’t have to worry about if your car is old or new the cover does not discriminate.
• The cover is still valid even if your car warranty has run out.
• You may have to use a mechanic that the insurance company suggests rather than one that you have chosen.
• It can end up being quite expensive especially if your car is quite new and does not need repair often.
• It does not cover ALL types of repair and your car may need a repair that is not covered in your policy.
• You need to read the policy properly because there can sometimes be hidden charges in the form of claim/processing fees and taxes.
When purchasing mechanical breakdown cover you need to look in the fine print and make sure you are buying a policy that covers all the repairs and costs that your car may need in the future. All in all it is a useful thing to have if your warranty is due to run out and your car is getting older and in the future may need the services that the insurance company are providing with the cover.