Does State Farm Offer Mechanical Breakdown Insurance?

State Farm customers who want to add mechanical breakdown insurance to their existing policies will need to look elsewhere for this type of coverage.

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Written by:

Dash Lewis , Writer

Written by: Dash Lewis Content Writer

04/03/2024 08:31 PM

Key Points:

State Farm does not currently offer mechanical breakdown insurance (MBI).
Mechanical breakdown insurance protects your vehicle from failure due to flawed workmanship or defective parts, but it doesn’t cover damage from accidents or environmental causes.
Geico is our top recommendation for an MBI policy.

Currently, you can’t buy State Farm mechanical breakdown insurance (MBI). While State Farm sells many insurance products–including all of the standard types of auto insurance coverage–mechanical breakdown insurance is not among its offerings.

If you’re interested in the sort of vehicle protection provided by an MBI policy, you can consider switching to a provider that does offer this insurance, or you can look into an extended auto warranty. This review will help you understand the difference between the two and offer suggestions for where to buy mechanical breakdown insurance and extended car warranties.

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What Is Mechanical Breakdown Insurance?

Mechanical breakdown insurance, or MBI, is a type of car insurance policy that covers the cost of repairing your car after a breakdown. These policies only cover auto parts that stop working after normal use, so damage that’s the result of a car accident, act of nature, improper maintenance, rodents, theft, vandalism, or misuse is not covered. For these occurrences, you’ll need to rely on your comprehensive insurance policy.

Mechanical breakdown insurance is similar to a car warranty or vehicle service contract. If a part in your vehicle malfunctions, simply take it to any repair shop for inspection. Provide the repair shop with your MBI policy number, and if your claim is approved, your provider will pay the repair shop directly for the cost of parts and labor–minus your deductible. In this way, MBI coverage works much like any other insurance coverage you may have.

The cost of an MBI policy is typically included in your regular auto insurance policy payments.

What Does Mechanical Breakdown Insurance Cover?

Mechanical breakdown insurance covers most of the parts in your vehicle, with some exceptions for items such as:

Auto glass
Tires
Bumpers and exterior trim
Interior upholstery
Maintenance services like oil changes
Wear-and-tear parts such as brake pads and fuel filters

The complete list of exclusions will vary depending on your insurer. Be sure to read any contract carefully to fully understand your car insurance coverage options before signing up for a policy.

Is Mechanical Breakdown Insurance Worth It?

An MBI policy may be worth it for many drivers, especially if you’d rather pay a small fee month over month rather than pay out of pocket for sudden, costly repairs. However, depending on your financial situation, it may be better to save for the cost of repairs yourself than to purchase an MBI policy.

In many cases, you can only purchase MBI for newer cars that are still protected by a factory warranty. Your manufacturer’s warranty will already cover most vehicle repairs, so you may be paying for unnecessary coverage until your new car’s factory warranty expires (typically after three or four years).

That said, MBI policies can provide added peace of mind, protecting you in the event of a major breakdown. Although it’s not likely, it’s possible that your vehicle will need a large unexpected repair that costs thousands of dollars. MBI policies are usually an inexpensive safety net, with insurers such as Geico offering policies for as little as $30 a year.

State Farm Mechanical Breakdown Insurance Alternatives

While you can’t buy State Farm mechanical breakdown insurance, there are other big car insurance companies that offer MBI policies. Geico is our top-rated provider that offers MBI coverage. Geico mechanical breakdown insurance is relatively inexpensive and is backed by one of the top insurers in the country.

You can see whether your insurer offers MBI by checking online or calling to speak with a representative. If your provider doesn’t offer mechanical breakdown coverage and you’re not interested in switching to a provider such as Geico, your other option is to purchase an extended car warranty.

Extended car warranties offer comprehensive coverage that is similar to MBI policies. However, since the two are not the same, be sure you understand the important differences between them before making a decision.

Mechanical Breakdown Insurance Vs. Extended Car Warranties

Sometimes, websites and providers will use the terms “mechanical breakdown insurance” and “extended car warranty” interchangeably. While these products are similar, they’re not exactly the same.

Perhaps the most significant difference is that mechanical breakdown insurance is considered an insurance product, and is therefore regulated by state insurance commissioners. Extended car warranties don’t face the same regulations and requirements. Although this may give better peace of mind to drivers who are wary of warranties, it doesn’t mean MBI policies are strictly better. It depends on your vehicle, budget, and needs.

MBI Vs. Extended Car Warranty: Key Differences

Here are a few other distinctions between mechanical breakdown insurance and an extended car warranty:

	Mechanical Breakdown Insurance	Extended Car Warranty
Regulations	Regulated by state governments	Not regulated by state governments
Coverage Eligibility Limits	Coverage must be purchased for newer vehicles	Coverage can be purchased at any time
Contract Lengths	Coverage typically lasts no longer than 10 years	Coverage can last up to 15 years or 250,000 miles
Payment Options	Paid as part of car insurance costs	Can be paid monthly or upfront in a lump sum
Cost	Costs an average of $50 to $100 per year	Costs an average of $400 to $800 per year
Coverage Levels	Only one level of coverage	Multiple levels of coverage to choose from

State Farm Mechanical Breakdown Insurance: Our Take

MBI can be worth it for drivers who have newer cars and want low-cost, straightforward peace of mind coverage. While they aren’t regulated by state governments like mechanical breakdown insurance providers are, there are still quite a few quality extended warranty companies.

Reputable extended car warranty companies reliably pay customer claims and honor their contracts while making coverage easy to use. We’ve done the research and found the best extended car warranty companies that stand out among the industry’s many providers.

Top Recommendations For Extended Car Warranties

Two of our most recommended warranty providers are CarShield and CARCHEX. Read a little about each company below, and get quotes to find out which can offer the best price for the coverage you need.

CarShield: Best Monthly Payments

CarShield offers six levels of warranty coverage for new and used vehicles. CarShield plans include a specialty plan for electrical and high-tech parts, a basic powertrain warranty, several mid-tier plans, an exclusionary bumper-to-bumper warranty, and a plan for motorcycles and all-terrain vehicles.

Coverage is available for vehicles up to 300,000 miles, and all plans include roadside assistance, towing reimbursement, rental car reimbursement, and a trip interruption allowance.

Learn more about this warranty provider by reading our full CarShield review.

CARCHEX: Best Industry Reputation

CARCHEX offers several levels of warranty coverage for new and used vehicles. Coverage is available for terms up to 10 years or 250,000 miles, and all contracts include roadside assistance, towing reimbursement, rental car reimbursement, and a trip interruption allowance.

CARCHEX is a highly regarded extended car warranty provider. It has been endorsed by industry leaders such as CARFAX, RepairPal, and Kelley Blue Book, and it holds an accredited A+ rating from the Better Business Bureau (BBB).

Learn more in our full CARCHEX warranty review.

Mechanical Breakdown Insurance: FAQ

Below are some frequently asked questions about mechanical breakdown insurance:

What does mechanical breakdown insurance cover?

Mechanical breakdown insurance, or MBI, covers problems that occur due to mechanical failure rather than an accident or simple wear and tear. MBI typically protects your car’s engine, transmission, drive axle, steering, and suspension. An MBI policy is similar to an extended car warranty. The main difference is that MBI is regulated by state insurance commissions, while extended warranty plans are not.

Is a mechanical failure covered by insurance?

Car insurance typically doesn’t cover mechanical failure unless it’s due to an accident or weather event. Collision and comprehensive car insurance cover you from these types of damage, while MBI or an extended warranty protects you against mechanical failures due to faulty parts or flawed workmanship.

What’s the difference between mechanical breakdown and wear and tear?

Mechanical breakdowns (as defined by an MBI policy) are caused by defective parts or faulty workmanship, while wear and tear is caused by normal vehicle use.

How We Rate Car Warranty Companies

Our review team extensively researches extended car warranty providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

Reliability: Warranty providers that earn strong ratings from the Better Business Bureau (BBB), work with reliable partners and administrators, and have a long history in the warranty industry score well in this category.
Coverage Plans: We take a close look at the coverage plans available through each provider, including how many are offered, maximum term limits, plan exclusions, and more. We also evaluate the added benefits companies include with their warranty plans, such as roadside assistance and trip interruption benefits.
Pricing: Our team performs a secret shopper analysis for a variety of vehicles and coverage plans to get a sense of a provider’s average costs. We see how each company’s pricing, deductible options, and discount opportunities compare to competitors when determining this score.
Transparency: We evaluate the availability and transparency of each company’s contracts, as well as whether each provider offers a money-back guarantee.
Customer Experience: We consider customer reviews and complaints from sites like the BBB and Trustpilot. Our team also reaches out to customer service reps during our secret shopper analysis to get a sense of the customer experience with each company.

*Data accurate at time of publication.

Dash Lewis Content Writer