What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

Should You Get Mechanical Breakdown Insurance?

Mechanical breakdown insurance is another protection matter that comes with your existing car insurance. This insurance helps always to keep the car running when some other things go wrong with the mechanical issue, which might not be covered by the factory warranty. It covers different types of the mechanic issues that generally not caused by any type of car accident. A.C hose puncture; engine busted etc will cover the mechanical insurance. This is quite reasonable in its terms but not that much in the principles. The issue of car breakdowns is expensive.

What is mechanical car insurance?

MBI covers some important failures that usually occur in every car and most of the time, it covers most of the car insurances. It can be the electrical system, transmission issues, bad breaks etc basically any type of system malfunction of your car. Repairing and fixing the cost of those issues can be covered with this type of insurance but tire problem and regular tune-up process are not included in the list. To avail MBI, every car owner or driver need to qualify for their driving test because not every car insurance company offer the coverage especially if the driver does not qualify to get that.

To get the car you need to meet some specific requirements, your car must be 15 months old and have to cover minimum 15,000 miles distance on the odometer. But these requirements are different for the different company.

How Much Does MBI Cost?

If you compare your cost of car insurance then the mechanical insurance will come a little bit expensive for you. For a Ford Edge, it cost $30 per year with the $250 deductible charge, which is really very expensive in its term. Your car insurance policies could be $75 per year with the deductible cost of $400. When you are opting for the car breakdown insurance, your car should be less expensive because the insurance companies do not offer the insurance for the car that too much expensive.

MBI vs. Extended Warranty

  • Extended warranties are mechanical breakdown insurance is almost same in most of the functions but different companies operate it in different ways. But the key factor is that the extended warranties are more expensive than the mechanical breakdown insurance.
  • According to the recent studies, the initial cost of the extended warranty is $1,214 for three years. On the other hand, the cost of the MBI is, $180 to $450 and this is for six years in effect policy.
  • To opt for the extended insurance you need to pay the up-front amount. Installation payment method is not associated with it. MBI coverage plans are more wide and flexible by comparing with the other one and especially when you are bringing your car for repairing.
  • With your extended warranties, you are allowed to use only certain garages and mechanics but not each and every one.
  • Extended warranties offer the less deductible amount than the MBI. The minimum deductible cost with the BMI is $250 and the adjustable deductible amount of the extended warranty is minimum $100.
  • Highly expensive cars are not allowed to come in the list of MBI but these can qualify for the extended warranty.

Is MBI Worth the Price?

To make your MBI worth it, you just need to have a car breakdown issue that generally exceeds the entire value of the insurance plan and the deductible amount. For a plan of $ 75 for minimum six years and $250, you need to face a breakdown that more than $700 in six years, can be worth you. But for a system failure, it can exceed the value of $700. So, if there the cases of like that you will be able to save the money of $500 to $ 2,800. You need to take the repairing expense minus than the cost of your MBI. But if there no such cases, you can save a lot of money on your MBI insurance. It can give you a peace of mind with any type of non-accident breakdowns of your car.

You can measure easily your chances of facing a car malfunction by knowing that how long one can use the car. Because of newer car breakdowns rarely. The construction of your car also can measure that.

Article rating:

5.0/5.0 (8 user votes)

Add new comment

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Enter your zip code to get insurance quotes in your area

Wrong zip code
Progressive StateFarm Allstate LibertyMutual
Get Free Quotes