What is Mechanical Breakdown Insurance?
If your love for your car runs deep, keeping it safe is a top priority. While your regular auto insurance has your back for accidents, it might surprise you that it doesn’t cover unexpected mechanical breakdowns. That’s where Mechanical Breakdown Insurance (MBI) steps in, providing an extra layer of coverage for fixing and replacing parts that decide to act up without any warning.
Here at People’s, we get that every car and owner is unique. That’s why our MBI program is super-flexible. With three protection levels to choose from, you’re in control. Pick the deductibles and coverage that match your needs so you can get back to the freedom of the open road.
What are the benefits of Mechanical Breakdown Insurance?*
- Nationwide coverage
- 24-hour roadside assistance
- Direct pay to repair facility
- Rental vehicle assistance
- Transferable if you sell your car before the agreement expires
*Visit your nearest branch location to receive an MBI brochure for conditions of coverage, exclusions, and your duties during the term of the plan. The purchase of MBI is voluntary and cannot be required as a condition of loan approval. This service is offered by Wesco Insurance Company.
How Does MBI Work?
Mechanical breakdown insurance is a completely different category of protection from your regular auto insurance. While most car insurance policies offer high-quality collision coverage that protects you when it comes to damage from accidents, it tends to leave you in the lurch when it comes to the broader spectrum of mechanical breakdown-related issues and repairs. Usually, mechanical breakdown insurance is purchased during the same phase of the transaction as when you’re getting your auto loan.
MBI can be a game-changer for your wallet in the long haul. Why? Because it steps up to cover those repairs that could otherwise put a huge dent in your budget. The systems and components covered by MBI tend to be some of the most expensive to repair and replace in the entire vehicle.
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What Does Mechanical Breakdown Insurance Cover?
Typically, mechanical breakdown coverage includes the more important parts of the vehicle, such as the powertrain. Depending on the coverage you elect to get, People’s MBI covers the following systems:
- Drive axle
- Transmission
- Engine components
- Electrical components
- Depending on your policy, mechanical breakdown insurance may also cover brake systems, steering, suspension, air conditioning, and some digital components.
What’s the Difference Between Mechanical Breakdown Insurance and an Extended Warranty?
Extended warranties and mechanical breakdown insurance both step in to handle the repairs and replacements needed for vehicle components dealing with mechanical failures. But, the real nuances lie in where these agreements come from and how they’re regulated.
Extended warranties usually come into play as an add-on when you’re getting your car from the dealer. The coverage may be standardized, but it can also sometimes be customizable to cover certain systems either party wants to be included. Extended warranties fall under the category of “service contracts,” not insurance. This means there’s minimal regulation.
Mechanical breakdown insurance is an actual insurance policy, meaning they’re subject to state insurance regulations. Unlike extended warranties, which might be thrown into the vehicle purchase price and paid in one go or as part of a financing plan, mechanical breakdown insurance is paid for similarly to any other insurance policy with monthly premiums.
Trust People’s for Mechanical Breakdown Insurance
When it comes to Mechanical Breakdown Insurance (MBI), People’s Community Federal Credit Union is your go-to choice. As a community-based credit union rooted in Vancouver, WA, we’re committed to putting people first in everything we do.
At People’s, we understand the unique needs of our members, and our MBI program is crafted to provide the peace of mind and protection your car deserves. If you’re not a member, join today!
Give us a call if you have questions, or stop by a branch today!
Mechanical Breakdown Insurance in Vancouver WA
Serving Greater Vancouver WA