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Mechanical Breakdown

from Insurance Center Associates

Mechanical Breakdown Insurance

Next to your home, your automobile is one of your most expensive investments, and is likely be the one that costs the most to maintain.

We offer several types of Mechanical Breakdown Insurance (MBI) coverages for both new and used vehicles through various carriers, with costs and benefit that blow away the contracts offered by car dealers.

This is an insurance contract, monitored and protected by the state – not some dealer warranty, or fly-by-night carrier you’ve never heard of that may go out of business, and leave you holding the bag.


  • No limit on claims
  • Repairs can be done by any licensed repair facility in the United States
  • Deductibles as low as $50
  • 24-hour Towing, Rental, & Road Hazard & key lockout service included
  • Trip Interruption – pays up to $75 per day for 3 days
  • The policy is transferable when sold to another individual, increasing the value of the vehicle
  • Terms from 1 year, 12,000 miles to 7 years and 100,000 miles

Get a free Mechanical Breakdown insurance quote

You can easily find out how much a new policy would save you by requesting a mechanical breakdown insurance quote right now. It's fast, free, and secure, and there's no obligation.

Mechanical Breakdown FAQs

What is a warranty?

A warranty is the first layer of mechanical breakdown coverage on any new vehicle. The coverage is provided, at NO COST to the vehicle purchaser, by the manufacturer. A warranty has a specific term expressed in months or miles (12 months or 12,000 miles, 36 months or 36,000 miles, etc.) and usually protects the ENTIRE vehicle against defect in workmanship and material. Special federal laws (and in some cases, state laws) regulate the manufacturer’s performance under the warranty coverage. For all intents and purposes, this is a true “bumper to bumper” protection.

What is an extended warranty?

Actually a “limited extended warranty,” this extends mechanical breakdown protection beyond the basic warranty term, again at NO COST to the vehicle purchaser, and applies to specific assemblies contained within the vehicle. The best example is the powertrain warranty provided by certain manufacturers. In this case, only the powertrain (engine, drive axle, transmission) is protected for an additional length of time or miles (ex: 6 years or 60,000 miles, 7 years, or 70,000 miles, etc.). Another example is the special factory warranty required by state and federal laws covering emissions and exhaust system components. The limited extended warranty does not cover all of the components contained in the covered assemblies and may impose a deductible that the vehicle owner must pay for each breakdown.

What is Mechanical Breakdown Insurance?

A mechanical breakdown insurance policy (MBI) is a true insurance product. Like personal auto or homeowners insurance the MBI creates a direct relationship between the vehicle owner and the insurance company. MBI coverages and premiums are regulated by state insurance departments, assuring a fair price for the coverage provide. Likewise, administrative, underwriting, and claim handling functions are subject to the review and control of state insurance departments. They would also be covered by any state insurance guarantee fund, combined providing a higher level of consumer protection over other types of contracts including those that may be issued at the dealership.

What is a Vehicle Service Contract?

A vehicle service contract (VSC) is a written agreement between the vehicle buyer and the dealership or manufacturer that provides and pays for “scheduled maintenance” items. This contract is often mistakenly called or perceived to be an “extended warranty”.

Most service contracts are restrictive and conditional. They are not always regulated and may not be backed by an insurance company. Also, in most states, the dealer is allowed to set the actual price of the contract at whatever level he chooses.

Our offices are conveniently located at:

1622 S. Gaffey #104
San Pedro, CA 90731

3220 Sepulveda Blvd #202
Torrance, CA 90505

Sample rates

Make & ModelNew Car
6 years old
100,000 Miles
Used Car
3 years old
36,000 Miles
Honda Acord / Ford Escort$350.00$375.00
Dodge Caravan / Nissan Maxima$465.00$470.00
Jeep Cherokee / Ford Tarus$505.00$470.00

Isn’t my car covered by the manufacturer’s warranty?

Statistics show big repair bills can come after the manufacturer’s warrant has expired. The MBI policies we offer cover many more components not covered by the factory drive train warranty.

Why buy now?

In addition to covering some things the manufacturer won’t, MBI policies provide towing, rental, travel and tire road hazard benefits. Most importantly – you can lock in the cost of the program today.

Which vehicles are eligible?

You can buy coverage on both NEW and USED vehicles.

New vehicles:  You can purchase the policy up until 1 month  / 1,000 miles prior to the expiration of the manufacturer warranty.

Used vehicles:  Limited to the current model year and 9 prior model years. Maximum current mileage = 90,000.  Coverage must be purchased within 21 days of your purchase agreement.

What coverages & terms are available?

Benefits are unlimited.  New cars are eligible for up to 6 years and 100,000 miles. Used cars are eligible for up to 4 years and 50,000 miles.

Can’t I buy the same policy from the dealer?

You can try to negotiate a similar policy and then haggle your way to a similar price if you are able. (we often find folks with dealer polices marked up to 3x our rate!). We take no mark-up or fees.

Simply eliminate the hassle and haggling and call us for an easy to read brochure of coverages and the no-hassle – no markup associated premium.

I already bought through the dealer and paid a lot more! Can I cancel my dealer contract / policy?

Yes. Although the dealer may not readily admit, state law requires that these contracts contain minimum cancellation clauses. What does this mean? All polices can be canceled within 30 days for a full refund less an optional $25 processing fee. If you’ve had the policy over 30 days you will receive a “pro-rata” refund, which means you only pay for the time you have used, and they will refund the balance paid.

Do I have to buy the policy with cash?

No. Ask your lender about including the premium in the financing package, or choose from payment plans offered by the insurance carrier, or simply use your credit card.

Find out how much you could save

Get a mechanical breakdown insurance quote today!