Mechanical breakdown insurance coverage may provide advantages over an extended warranty on a car because it is offered through an insurance company and is regulated by the insurance industry for standards and claims.
What Mechanical Breakdown Insurance Doesn't Cover: Routine tune - ups or tire issues, damage caused by poor maintenance, and any repairs required after an accident or crash (accident and crash - related repair costs go through your collision or comprehensive coverage).
Listen to ASIC Deputy Chairman, Peter Kell talk about the sale of add - on insurance policies
like mechanical breakdown insurance through car dealers and how the market is failing consumers.
Mechanical Breakdown Insurance extends and complements your car's warranty, and can help you manage the costs of random out - of - pocket expenses, like whatever's happening to imaginary you back in the first paragraph.
USAA Extended Vehicle
Protection Mechanical Breakdown Insurance is underwritten by American Bankers Insurance Company of Florida (MA) and American Security Insurance Company (CA)(260 Interstate North Circle, N.W., Atlanta, GA; Domicile (DE); CA License # 3013 - 0), each an Assurant Solutions company.
Extended warranties have smaller deductibles than
mechanical breakdown insurance plans; you can expect a deductible of around $ 100 for most extended warranties, much smaller than the $ 250 to $ 500 deductible on MBI policies