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What’s the difference between car insurance and mechanical breakdown insurance?

Do you know the difference between car insurance and mechanical breakdown insurance? Is one better than other? Do you need both? 

Many people assume that a car insurance policy is all you need. But when it comes to protecting your car, your policy may not cover everything that can go wrong.  Mechanical breakdown insurance provides a very different type of protection. 

So, what does each type of insurance cover, or not cover? We break it down. 

Infographic featuring a car, showing the difference between what car insurance and mechanical breakdown insurance cover
MBI VS CI [Recovered]

What is car insurance?

Car insurance can help protect you from being financially liable for unexpected incidents. This can include things like damage to your car or someone else’s in an accident, or if your car is broken into or stolen.

What does car insurance cover? 

Depending on the type of cover you choose, your insurance policy may include cover for:

  • Accident damage to your or someone else’s car or property.
  • Damage to your own car in an accident, if you have comprehensive cover.
  • Theft or a break in. 
  • Fire damage and weather events like storms or floods.

What does car insurance NOT cover? 

Many things are not covered under your car insurance policy, including issues that impact the car itself. For example, car insurance doesn’t cover: 

  • Mechanical or electrical failure.
  • Breakdowns caused by ageing parts.

In a nutshell: Car insurance protects you when something happens to your car, like an external event or accident.

What is mechanical breakdown insurance?  

Mechanical breakdown insurance (MBI) can help cover unexpected mechanical or electrical failures in your car. This can be particularly useful if you have an older car, if you’re buying a used car, or if your manufacturer warranty is about to expire.

What does mechanical breakdown insurance cover? 

MBI policies vary, but they commonly cover the moving parts of your car, which can be the most expensive things to repair, such as:

  • Engine failure.
  • Transmission or gearbox issues.
  • Electrical system faults.
  • Cooling system failures.
  • Air conditioning systems.

What does mechanical breakdown insurance NOT cover? 

Of course, there are some exclusions for MBI. Your mechanical breakdown insurance policy does not cover things like: 

  • Accident damage or theft.
  • Routine maintenance like servicing, brake replacements or tyres.
  • Issues arising from not regularly servicing your car. 
  • Pre-existing issues with your car from before your policy started.

In a nutshell: mechanical breakdown insurance protects you when something goes wrong inside your car, like a mechanical fault or electrical failure. 

Do you need BOTH car insurance and mechanical breakdown insurance?  

Because car insurance and MBI are complementary, not interchangeable, if you want to be fully covered in case things go wrong with your car or as a driver, consider getting both types of insurance.

While car insurance is essential for protecting against accidents, theft or damage, it is not going to help if you’re facing a big repair bill for engine problems or other mechanical failures. 

Want extra peace of mind? If you’d like to learn more about helping to cover unexpected mechanical or electrical faults, explore AA Mechanical Breakdown Insurance.

 

Terms, conditions, underwriting criteria, limits and exclusions apply.