Mechanical Breakdown Insurance in 2026

Mechanical breakdown insurance (MBI) helps cover engine, transmission, and electrical repairs not caused by accidents, to help prevent costly, unexpected repairs.

Premiums vary based on insurance deductibles, vehicle age, mileage, and insurer eligibility rules. Among major providers, Geico offers some of the cheapest MBI rates at $13 per month.

Coverage varies by state and vehicle type, making comparison key to finding the best rates for mechanical breakdown insurance. Get fast and cheap auto insurance coverage today with our quote comparison tool.

Mechanical Breakdown Insurance Meaning

Mechanical breakdown insurance is an optional auto insurance coverage that helps pay for repairs caused by mechanical or electrical failures not related to accidents.

MBI typically covers major vehicle components like the engine, transmission, drivetrain, and onboard electronics that can be expensive to repair or replace.

Unlike standard car insurance, mechanical breakdown insurance does not cover collision damage, routine maintenance, or normal wear and tear.

MBI coverage availability depends on factors such as vehicle age, mileage, insurer rules, and state regulations, and it is usually offered for newer, lower-mileage vehicles.

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Mechanical Breakdown Insurance Coverage Explained

What’s included for mechanical breakdown insurance is damage caused by internal mechanical and electrical failures, rather than accident-related damage.

MBI helps pay for sudden issues that affect a vehicle’s ability to operate safely and reliably, reducing the financial impact of major repair bills. Claims are generally handled through approved repair shops, depending on the insurer’s rules.

Most policies exclude routine maintenance, cosmetic damage, and wear-related issues and are usually limited to newer, lower-mileage vehicles. Coverage varies by insurer, deductible level, and vehicle eligibility requirements, which can significantly affect cost and access.

Learn how to compare multiple auto insurance quotes and review coverage limits, exclusions, and repair options near you before adding MBI protection to a policy.

Mechanical Breakdown Coverage Costs

The cost of mechanical breakdown insurance varies widely by insurer and is heavily influenced by deductible selection, with zero-deductible plans costing the most.

Monthly pricing for MBI can range from about $13 with Geico to roughly $120 with AAA, while Allstate averages around $60 a month for similar coverage.

Mechanical Breakdown Insurance Monthly Rates by Deductible Amount

State Farm offers mechanical breakdown insurance at around $26 per month, though coverage is typically restricted to newer cars with strict vehicle age and mileage requirements.

Choosing a higher deductible generally lowers premiums, but base pricing still depends on the insurer. For instance, Geico has the cheapest MBI rates, but coverage is not available in most states and is offered only through limited partnerships.

Other providers structure coverage differently. Liberty Mutual and Allstate mechanical breakdown insurance is commonly offered through affiliates or as add-on programs rather than as standard coverage, with Liberty Mutual pricing near $34 per month.

AAA pricing is highly regional and varies significantly by local club and state, making comparison especially important. Learn more in our guide: AAA Auto Insurance Review.

How Your Vehicle Impacts MBI Premiums

One of the biggest factors affecting mechanical breakdown insurance cost and eligibility is vehicle age. Newer vehicles between zero and three years old have the lowest average monthly rates at about $22 and are most commonly eligible for coverage.

As vehicles age, premiums increase, and availability becomes more restricted, with rates rising to around $28 monthly for cars less than six years old.

Mechanical Breakdown Insurance Cost & Eligibility by Vehicle Age

Older vehicles face both higher costs and limited access. Cars between seven and ten years old average about $36 per month and often qualify only under stricter insurer guidelines.

Vehicles over ten years old see rates climb to roughly $45 per month, with coverage becoming rare, as many insurers limit mechanical breakdown insurance to newer, lower-risk vehicles.

Vehicle type plays an important role in determining both the cost and availability of mechanical breakdown insurance. Get the Details: Auto Insurance Rates by Vehicle

Sedans tend to have the lowest average monthly rates at about $27 and are the most commonly eligible, while SUVs average around $32 per month.

Mechanical Breakdown Insurance Cost & Eligibility by Vehicle Type

Insurers often view sedans and SUVs as lower risk due to lower repair costs and greater availability of common parts for repairs.

Specialty and heavier vehicles typically cost more to insure. Trucks average about $34 per month and often come with limited eligibility. Hybrids and electric vehicles are the most expensive, and coverage is rare due to higher repair costs and specialized components.

Read More: Best Auto Insurance for Hybrid and Electric Cars

How Mileage Affects Mechanical Breakdown Insurance

Mileage is another major factor that affects both the cost and availability of mechanical breakdown insurance.

Vehicles with under 30,000 miles have the lowest average monthly rates at about $23 and are commonly eligible for coverage.

Mechanical Breakdown Insurance Cost & Eligibility by Mileage

As mileage increases, premiums rise, and access becomes more limited, with vehicles in the 30,000 to 60,000 mile range averaging around $28 per month.

Higher-mileage vehicles face stricter eligibility and higher costs. Cars with 60,000 to 100,000 miles typically average about $37 per month and often qualify only under limited conditions.

Once a vehicle exceeds 100,000 miles, average monthly costs climb to roughly $47, and coverage becomes rare, as insurers view higher mileage as a greater mechanical risk.

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Mechanical Breakdown Insurance Prices by State

Mechanical breakdown insurance costs vary by state due to differences in repair labor costs, insurer availability, vehicle usage patterns, and state regulations.

Average monthly rates generally fall between the mid-$20 and low-$30 range, with some states offering more affordable pricing and others trending higher based on local market conditions and vehicle risk factors.

States with higher repair costs or limited insurer participation tend to see higher premiums with MBI, while regions with broader access and lower labor expenses often have more competitive rates.

Because availability and pricing can differ significantly by location, comparing options within your state is essential to finding the best mechanical breakdown insurance for your vehicle.

Check Out This Page: Auto Insurance Rates by State

When to Buy Mechanical Breakdown Insurance

Mechanical breakdown insurance helps protect drivers from large out-of-pocket expenses by covering costly repairs that would otherwise need to be paid in full.

Unexpected vehicle repairs can quickly become a financial burden, especially when major systems fail without warning.

This type of auto coverage can provide peace of mind when driving a newer vehicle outside of factory warranty protection. One of the main reasons to consider MBI coverage is cost control.

Instead of facing unpredictable repair bills, drivers pay a set monthly premium and deductible, allowing for more predictable expenses.

In many cases, mechanical breakdown insurance costs less than extended warranties while offering similar protection. Another key benefit is extended protection beyond the manufacturer’s warranty.

Once factory coverage ends, MBI can help continue financial protection for critical vehicle systems, reducing the risk of expensive repairs during ownership.

This makes it especially valuable for drivers who plan to keep their vehicle long-term. Mechanical breakdown insurance can also support vehicle value by encouraging timely repairs and proper maintenance.

By making major repairs more affordable, MBI coverage helps keep vehicles running safely and reliably, which can reduce long-term ownership costs and protect resale value. Enter your ZIP code to find out where you can get the best mechanical breakdown insurance.