Many people opt for extended warranties to provide peace of mind in case their car breaks down, but another lesser-known option is mechanical breakdown insurance (MBI). This type of insurance covers major mechanical failures that occur outside of accidents or collisions, such as transmission or engine issues. One reputable provider of MBI is the American Automobile Association (AAA).
MBI works similarly to extended warranty plans, where you choose your coverage level and set a deductible. If your car experiences a covered breakdown, you pay the deductible and the insurance covers the remaining repair costs. This type of insurance can be a good investment for those who want to avoid hefty out-of-pocket expenses for unexpected vehicle repairs.
AAA offers MBI in addition to its roadside assistance and car insurance products. The coverage typically includes major components like the engine, transmission, cooling system, brakes, and more. However, routine maintenance items are not covered under MBI.
In terms of cost, MBI from AAA is relatively affordable, with premiums ranging from $30 to $100 per year and deductibles ranging from $100 to $500. Whether MBI is worth it depends on your specific situation. If you have a newer vehicle without an extended warranty and want financial protection for major mechanical failures, MBI could be a good option.
When comparing MBI to extended car warranties, the primary difference lies in vehicle eligibility and coverage duration. Extended warranties are better suited for older vehicles with higher mileage, while MBI is typically for newer vehicles.
AAA, founded in 1902, is a reputable organization that offers a variety of insurance products, including auto, home, life, and more. While the company has an A+ rating from the Better Business Bureau, customer reviews for its MBI program are limited. It’s important to research and read local reviews to gauge customer experiences with AAA’s MBI coverage.
If AAA’s MBI doesn’t seem like the right fit for you, there are other reputable insurance carriers that offer MBI coverage. Geico and Progressive are recommended options, each with their own benefits and coverage options.
In conclusion, AAA’s mechanical breakdown insurance can provide peace of mind for drivers worried about unexpected vehicle repairs. While AAA is a well-established company, it’s essential to research and compare different MBI options to find the best coverage for your needs. Whether you choose AAA or another provider, having MBI can help protect you from costly repairs and give you added financial security.