A mechanical breakdown insurance (MBI) policy is a true insurance product like personal auto or homeowners insurance. MBI coverage and premium are regulated by state insurance departments, assuring a fair price for the coverage provided by each insurer. Similarly the state insurance department has control over administrative, underwriting and the claim handling functions are subject to the review.
Benefits of MBI
Mechanical breakdown insurance has many benefits and it is a must for all brand new cars and useful for the used cars too.
It is available for both new cars and used cars.
It has been proven through track record that the cars just out of manufacturer warranty are likely to have heavy bills. MBI would help a lender to recover the outstanding payments on the vehicle in these circumstances and also provides towing, rental, travel and tire road hazard benefits.
The repairs for the car could be done at any repair facility in the United States
Deductibles are as low as $25.
The best advantage is the transferability of policy if there is a need.
The cover term can very between 1 year for 12000 miles and 6 years or 100,000 miles.
Mechanical breakdown can land a driver in deep financial trouble and this unique can get him out of it. Hence the uniqueness is felt by all the car owners and the MBI coverage is becoming popular as it is being recommended by those who have used it.
Listed & Non listed services in MBI
Let us take a detailed look at the covered services and non covered services under the mechanical breakdown insurance cover. Though breakdown of the mechanical, electric or electronic systems are covered, the routine charges like replacements are not covered. The non covered services are body work, brake or clutch work, contaminated fuel system, batteries and other electrical parts, suspension rods, sticking valves, distributor cap, spark plugs, wiper blades, bulbs, hose pipes, cable and the catalytic converter. There are certain components that are covered by default, under the MBI policy and they are engine block, master cylinders, starter, alternator, water pump, prop shaft and carburetor etc.
MBI Cost Vs Savings
All insurers who offer you MBI coverage require you to not only pay your premium and deductible but also 20% of your repair costs. Analysis on the premium, deductible and the repair costs reveals that the policy holder gets to save a whole lot by taking MBI for his auto. Mechanic Breakdown insurance cover is the best option for many to use additional advantages such as towing, rental etc., and also gives the extended warranty to the policy holders. It is advisable for the auto owners to have MBI coverage to the maximum extent that they can afford.