Mechanical breakdown insurance is a form of supplementary insurance to a regular auto insurance policy that can help to pay for repairs to a car that can be required over the years.
The price of unexpected auto repairs can be very costly and can throw off a person’s ability to stick to a budget or keep to a financial plan. By investing in the additional coverage provided by mechanical breakdown insurance, customers can make their expenses much more predictable and reduce the risk of unexpected costs that they cannot afford.
This insurance is available through a car dealer, financial institution, or an auto insurance company. Policies won’t cover typical maintenance and regular wear and tear on the vehicle, such as oil changes or worn tires, but can help to cover the additional costs once the car is no longer under warranty.
There are varying levels of coverage that can protect based on a certain number of months or miles, depending on what the customer wants. For example, the very basic form of mechanical breakdown insurance will usually include:
• Transaxle and transmission breakdown, including their internal components
• Drive axle housings and their internal joints, axles, and components
• Engine parts such as the flywheel, timing gears, valves, and oil pump
Increased insurance coverage levels can also include cooling, electrical, steering, fuel system, and air conditioning repairs. The majority of these policies will also provide coverage for other costs that are connected with breakdowns, such as the cost of rental cars, towing, lock-out service, and 24-hour roadside assistance.