When it comes to protecting your vehicle, understanding the different types of insurance available is essential. In this blog post, we’ll explore Mechanical Breakdown Insurance (MBI) and how it differs from comprehensive car insurance. We’ll also discuss the benefits of MBI, what it covers, what it doesn’t cover, and help you make an informed decision about your vehicle’s protection.
What is Mechanical Breakdown Insurance?
Mechanical Breakdown Insurance is a specialised insurance policy designed to cover the cost of repairs and replacements for your vehicle’s mechanical parts. Unlike comprehensive car insurance, which covers damages from accidents, theft, and natural disasters, MBI focuses specifically on the mechanical aspects of your car.
Benefits of Mechanical Breakdown Insurance
- Cost savings: Mechanical repairs can be very expensive, especially for transmissions and engines. Consider this: this year, we had one case where a transmission replacement for a 2014 Ford Ranger cost $6,600. MBI helps with the cost of these kinds of repairs or replacements, saving you from significant out-of-pocket expenses.
- Peace of mind: With MBI, you can drive confidently, knowing that mechanical issues will be taken care of without draining your finances.
Mechanical Breakdown Insurance is very different from Comprehensive Car Insurance
While both types of insurance offer valuable protection, they serve different purposes:
- Comprehensive Car Insurance: This insurance covers damages resulting from accidents, theft, vandalism, and natural disasters. It ensures that your vehicle is protected against external damages and incidents beyond your control.
- Mechanical Breakdown Insurance: In contrast, MBI covers the internal mechanical components of your vehicle, such as the engine, transmission, and electrical systems. It kicks in when these parts fail due to faults (and not fair wear and tear).
How MBI is Complementary to Comprehensive Car Insurance
Think of Mechanical Breakdown Insurance (MBI) and Comprehensive Car Insurance as two halves of a whole, much like a lock and key. Each serves a unique purpose, but together, they provide complete protection for your vehicle.
Comprehensive Car Insurance is your safeguard against external threats—accidents, theft, vandalism, and natural disasters. It covers the visible and external damages that can happen to your vehicle, ensuring that you’re not left out of pocket for incidents beyond your control.
On the other hand, MBI is like an extended warranty for your vehicle’s internal components. It steps in to cover mechanical failures and breakdowns that are not related to external incidents. Whether it’s a failed engine, a malfunctioning transmission, or electrical system issues, MBI ensures that you’re covered for these costly repairs.
By combining both types of insurance, you ensure full coverage for your vehicle. Comprehensive Car Insurance handles the external risks, while MBI takes care of the internal mechanical issues. Together, they offer a robust safety net, giving you peace of mind that your vehicle is protected.
What Does Mechanical Breakdown Insurance Cover?
MBI typically covers a wide range of mechanical components, including:
- Engine and transmission: Repairs or replacements for the engine and transmission system.
- Electrical Systems: Coverage for electrical components, such as the alternator, starter motor, and wiring.
- Cooling system: Protection for the radiator, water pump, and cooling system parts.
- Fuel System: Coverage for the fuel pump, injectors, and other fuel system components.
- Air conditioning and heating: Repairs for the air conditioning and heating systems.
- Steering and Suspension: Coverage for the steering system and suspension components.
It’s important to note that MBI policies can vary, so it’s essential to review the specific coverage details of your policy. For Autolife Mechanical Breakdown Insurance these can be found here.
What Mechanical Breakdown Insurance Doesn’t Cover
While MBI offers extensive coverage for mechanical issues, there are certain things it typically does not cover. For example:
- Routine maintenance: Regular maintenance services such as oil changes, tire rotations, and brake pad replacements are not covered.
- Wear and tear items: Parts that naturally wear out over time, like tires, and wiper blades, are not included.
- Damage from accidents: Any damage resulting from collisions, theft, vandalism, or natural disasters is covered by comprehensive car insurance, not MBI.
- Negligence: Damage resulting from neglect, lack of maintenance, or improper use of the vehicle is not covered.
Finally, it is important to mention that servicing is essential to maintain the validity of your Mechanical breakdown insurance. For example, With Autolife we require that your vehicle must be regularly serviced within 5,000km or 3 months (whichever comes first) following the Start Date of your Policy and thereafter yearly or every 10,000km by an MTA Authorised Service Centre.
Understanding these exclusions helps in setting realistic expectations and ensures you are adequately covered for different scenarios. You find out more exclusions with Autolife Breakdown Insurance in our product disclosure statement.
Making an Informed Decision
By understanding the differences between MBI and comprehensive car insurance, along with what MBI covers and doesn’t cover, you can make a more informed decision about your vehicle’s coverage and enjoy peace of mind on the road.
Want to get covered?
Don’t let unexpected breakdowns catch you off guard. Discover the peace of mind that comes with Mechanical Breakdown Insurance! If you have questions or are ready to get started contact us.