AA Mechanical Breakdown Insurance terms and conditions

AA Mechanical Breakdown Insurance (AA MBI) is underwritten by DPL Insurance Limited (“DPL”).

Please take the time to read these terms and conditions as they contain information You need to know and understand.

In particular, You should note that the insurance policy may not cover You if You do not follow the vehicle servicing requirements set out in these terms and conditions.

Important notices


DPL Insurance Limited (referred to as “We” “Our” or “Us” in this policy) is the insurer under this contract.

The AA does not have any liability under this insurance policy.

“You” or “Your” means the insured person or persons named on the proposal certificate.

Your Contract

Your contract is made up of:

  1. The proposal certificate; and
  2. The policy booklet.

Together these documents set out the terms and conditions of Your policy. It is Your responsibility to ensure that all details contained on the proposal certificate are correct.

Insured Components means the list of covered parts contained in this document. Any parts not listed are not covered.

Authorised Repair Facility

These facilities include:

  • AA Licensed Repairers/AA Approved Repairers;
  • AA Auto Service & Repair and AA Auto Centre sites;
  • Other repairers approved by DPL.

Your Rights If There Is A Dispute

If a manager cannot resolve the matter, it can be dealt with through Our internal Dispute Resolution process.

You need to ask Our manager to refer the matter to a Dispute Resolution Officer. The Dispute Resolution Officer will investigate and try to reach a satisfactory outcome. You will be advised in writing of Our final decision, normally within 10-days. Our Dispute Resolution process is a free service to You.

If You do not agree with Our decision, Your complaint can be reviewed through the Insurance & Financial Services Ombudsman Scheme. This is a free independent disputes resolution body funded by the insurance industry to consider complaints against members within its jurisdiction.

We must abide by the Insurance & Financial Services Ombudsman's ruling, but You are permitted to reject the ruling and take Your case to an alternative means of dispute resolution. You may have other rights under the Consumer Guarantees Act 1993.

Contact Details

For all claim enquiries phone 0800 809 700 (option 1) or write to:

PO Box 331248
Auckland 0740

Cover provided

The reasonable cost to repair the actual failure of mechanical or electrical insured components unless otherwise excluded following a sudden and unforeseen breakdown that occurs within New Zealand during normal use.

Claim Entitlement

Odometer Standard Special Category European
Up to 150,000 kms $5,000 $5,000 $5,000
  • These claim entitlement limits include GST.
  • The odometer reading is at the date of commencement of the policy.

A. Standard Vehicles

Petrol powered vehicles 12 years old and less having travelled less than 150,000 kms at commencement of cover other than those listed in B and C and not listed in Excluded Vehicles.

B. Special Category Vehicles

Vehicles 12 years old and less having travelled less than 150,000 kms at commencement of cover falling into the following categories:

  • Turbo and supercharged vehicles;
  • Vehicles manufactured in the USA;
  • Diesel powered vehicles;
  • Hybrid vehicles;
  • Mazda RX8.

C. European Vehicles

Diesel or petrol powered vehicles, manufactured in Europe, 12 years old and less that have travelled less than 150,000 kms at commencement of cover including but not limited to: Alfa Romeo, Audi, BMW, Citroen, Daimler, Fiat, Jaguar, Lancia, Land Rover, Mercedes-Benz, MG, Mini, Opel, Peugeot, Renault, Seat, Skoda, Vauxhall, Volvo and Volkswagen.

Excluded vehicles

There is no cover for any of the following vehicles:

  • Gross Vehicle Mass over 3500 kg;
  • over 12 years old;
  • have travelled more than 150,000 kms;
  • powered by engines with more than 8 cylinders;
  • modified in any way from the manufacturer’s standard specification;
  • manufactured by Aston Martin, Bentley, Ferrari, Jensen, Lamborghini, Lotus, Maserati, Porsche, Rolls Royce, Rover, Saab or TVR;
  • BMW M3, M5, & M6 series, BMW 7 series, Mercedes-Benz AMG, Audi RS Models, Audi Q7 V12, R8, A8 & S8, VW W8;
  • used as taxis, rentals, courier vehicles, shuttles, any fare paying passenger vehicle or goods delivery vehicles.

If Your vehicle falls into this category a refund of the unused part of Your paid premium will be made on request.


You must contribute the amount shown as the excess as the first amount of each unrelated claim. You must pay the excess to the repairer before You collect Your vehicle.

Standard Vehicles $125
Special Category Vehicles $250
European Vehicles $350

What is not covered

We will not pay for:

  1. Repairs that are covered by the manufacturer’s warranty or repairs that are the subject of a manufacturer’s recall or any component design fault or any damage arising from the design fault;
  2. Any fault existing at the commencement of cover and any resulting damage;
  3. Failure of any item not contained in the list of Insured Components;
  4. Damage caused by the failure of a part not included in the list of Insured Components;
  5. The reconditioning or replacement of components that whilst worn, have not actually failed;
  6. Servicing and maintenance;
  7. Costs arising from the failure of the cambelt and/or any resulting damage when the cambelt is not replaced in accordance with the manufacturer’s recommendation;
  8. Costs relating to any claim that is not lodged during the policy term;
  9. Any costs whatsoever relating to loss of use of the vehicle;
  10. Costs arising from repairs necessitated by external causes, contamination, perishing, corrosion, rust, accident damage, fire damage, water damage, theft, willful damage, misuse, neglect, faulty repair and/or defective workmanship;
  11. Any costs related to the excessive use and/or burning of oil where no mechanical failure has occurred;
  12. Repairs necessitated by the failure of any plastic components due to gradual deterioration and any resulting damage;
  13. Repairs resulting from incorrect use of fuel, bio fuel, oil, lubricant, coolant or any other fluid. This includes using the wrong octane fuel grade;
  14. Any repairs commenced or carried out without Our approval.


You must take all reasonable steps to protect Your vehicle from breakdown and comply with the manufacturer’s servicing, operating and safety recommendations. This information can be found in the owner’s handbook, on the manufacturer’s website or obtained from any authorised service centre.

This policy does not apply if Your vehicle is used in racing competitions, time trials, rallies, speed testing, pace making, reliability trials, any off-road activities, street racing, sustained loss of traction, burn outs or drifting.

If any claim under this policy is supported by any incorrect information or statement or is in any respect fraudulent, then Your claim is not payable and this entire policy automatically terminates from the date that the incorrect statement or fraudulent claim was made to Us.

If You breach any policy term or condition no claim will be payable under this policy. Nothing in this policy affects Our rights to avoid the policy for nondisclosure.

You must comply with the service requirements detailed in this policy.

If a claim is paid, and you are paying for this policy via monthly instalments, the remainder of the full annual premium will be required before the claim is paid to the repairer.

Cost of parts

We reserve the right to supply new, used or reconditioned parts at Our discretion. If any parts, required for a repair, are unavailable in New Zealand then the most We will pay is the least of:

  1. The manufacturer’s most recent New Zealand list price;
  2. The list price of the closest equivalent part available in New Zealand; or
  3. The cost of having a new part made in New Zealand.

Transfer of MBI

At Our discretion We may permit transfer of this policy to a new owner if You sell the vehicle, provided the premium has been paid in full.

A transfer will not be permitted if the vehicle is sold to or through a motor dealer or trader. A transfer will not be permitted if any claim has been paid under this policy.

To request a transfer please contact Us for a Transfer of AA Mechanical Breakdown Insurance Request Form. Once You have completed this form return it to Us with:

  • Copy of new Warrant of Fitness or Vehicle Inspection report (if requested);
  • Copy of receipt of vehicle purchase;
  • Copy of vehicle service records; and
  • Transfer fee of $75 (incl GST).

Both You and the person You wish to transfer the policy to must sign the form. There is no refund of premium available.

To request a transfer please apply in writing to:

DPL Insurance Limited
PO Box 331248
Auckland 0740

Or phone 0800 809 700.

Cancellation of this Policy

You may cancel this policy at any time. We will provide a full refund of premium paid only if You do this within the first 30 days and You have not made a claim under this policy. At any other time there will be no refunds of premiums paid.

Inspection Report

Your vehicle must undergo a mechanical inspection prior to acceptance of this policy. Any faults noted in this inspection are considered pre-existing and are not covered by this policy. (Refer to ‘What is not covered’, number 2). Because of the nature of the mechanical inspection, there may be other faults that are not picked up (refer to the mechanical inspection terms and conditions). Depending on their nature these faults may also be pre-existing and not covered by the policy.

Your mechanical inspection must be forwarded to Us within 14 days of the policy’s inception date. No claims shall be payable under this policy if We have not received a copy of the report within the 14 day period.

The content of your mechanical inspection report and the accuracy of the inspection is between You and the Provider and all correspondence should be referred to the Provider.

Authorised inspectors (Provider)

  • The New Zealand Automobile Association
  • an inspector approved by DPL.

To arrange your mechanical inspection please phone 0800 500 333 or visit aa.co.nz/ppi

Additional Benefits

If the vehicle suffers a mechanical breakdown during the period of cover, We will also provide the following benefits:

  1. Quality Guarantee
    All repairs, authorised by Us, and carried out under this policy will be covered by this policy for the remaining period of cover.
  2. Consumable Items
    Any items that require periodic replacement as part of normal vehicle maintenance are not covered by this policy. We will, however, pay to replace such items if they are required in relation to an actual failure of mechanical or electrical components covered by this policy.

Vehicle Servicing

It is a condition of this policy that You have the vehicle regularly and punctually serviced.

Petrol vehicles must be serviced at least every 15,000 kms or 12 months, whichever comes first, from the policy commencement date or as per the manufacturer’s specification.

Diesel vehicles must be serviced at least every 10,000 kms or 12 months, whichever comes first, from policy commencement date or as per the manufacturer’s specification.

All vehicle servicing must be carried out by a recognised service facility. As part of the service the following must be checked and attended to as required:

  • change engine oil and oil filter;
  • check all fluid levels and condition;
  • check air filter;
  • check all belts, replace if necessary. Please note cambelts must be replaced as specified by the vehicle manufacturer;
  • check cooling system including inhibitor and hoses;
  • check turbo oil feed;
  • check automatic transmission oil;
  • check Warrant of Fitness;
  • check CV joints and boots;
  • check braking system including brake fluid condition;
  • check steering and suspension systems.

The cost of servicing is at Your expense.

All servicing invoices will be required in the event of a claim. Please retain all invoices for future reference.

Making a Claim

To make a claim on this policy You must take the following steps:

  1. Take the vehicle to an authorised repair facility (call 0800 809 700 for the location of Your nearest authorised repairer). You are responsible for the cost of transporting the vehicle to the repairer. You must give the AA Your contact details, policy number and registration number.
  2. Give details of this policy to the authorised repairer when You have delivered the vehicle, and ask the repairer to lodge a claim on Your behalf.

If Your claim is accepted, We will authorise repairs and issue the authorised repair facility with a repair authorisation number.

You are responsible for making sure the authorised repair facility contacts Us before repairs begin.

In some instances We will require You to complete a claim form and We will also require other documentation such as proof of servicing, and invoices, etc.

We may also need You to authorise certain work with the authorised repair facility since We may not be able to ascertain whether the failure is covered by this policy without dismantling the vehicle.

Where this is the case We or the authorised repair facility will request Your authority before commencing any work on the vehicle.

We reserve the right to supply new, used or reconditioned parts at Our discretion.

Authorised Repairer Instructions

When you are contacted by Our policyholder, prior to commencing repairs, please contact Claim Services on 0800 809 700 option 1 and advise them that you wish to make a mechanical breakdown claim.

If the claim is accepted We will authorise repairs and issue a repair authorisation number.

Once work is completed please forward the invoice to:

DPL Insurance Ltd
PO Box 331248
Auckland 0740

Invoices must include the following details:

  • authorisation number;
  • vehicle registration number;
  • policy or proposal number;
  • customer’s name in full;
  • odometer reading;
  • breakdown of repair costs detailing parts and labour, and copies of any subcontracted repair invoice (when requested).

Repairs must not be commenced unless authorised by Claim Services. Any repairs not authorised are not covered.

List of insured components

Engine – ancillary shaft, balance shafts, cambelt, camshaft, camshaft followers, connecting rods & pins, cylinder block, cylinder head, cylinder head gasket, cylinder liners, crankshaft, distributor drive gear, distributor drive shaft, fly wheel and ring gear, hydraulic tappets, manifolds, oil filter housing, oil pressure relief valve, oil pump, pistons and rings, pulleys, push rods & tappets, shell bearings & internal bushes, timing belt tensioner, timing chain tensioner, timing gears & chain, rocker shafts, valves & guides, valve seat inserts, valve springs.

Manual Transmission – casing and all internal components.

Automatic Transmission – casing and all internal components

Differential – (inc. limited slip differential), bearings & internal bushes, casing, clutches, crown wheel carrier, crown wheel & pinion, extension shafts, gears, half shafts, shims, spider gear shaft, transfer box, 4 wheel drive - bearings, casing, gears, selectors, shafts, viscous coupling.

Air Bags – and componentry.

Electrics – alternator, alternator voltage regulator, coils, distributor, ecu electronic ignition, electronic ignition module, engine management computer, fuel injection computer, reluctor & impulse sensor, heater fan motor, indicator unit ( relay only), knock sensors, rear screen heater, starter motor, transmission computer, washer motors, windscreen wiper motors.

Fuel System – air flow meter, carburettor, fuel gauge sender unit, fuel pump, fuel flow sensor, fuel governor, fuel injection pump, injectors, lift pumps, throttle body.

Drive Assembly – constant velocity joints, drive shafts, hubs, final drive unit, free wheeling hubs, shafts, bearings & bushes, transfer gears, transfer casing.

Steering – drop arm, power steering pump, rack & pinion, rear steering rack & pinion, reservoir & pressure pipes, speed sensor, steering box, steering column universal joint.

Suspension – anti-roll bar, coil springs, leaf springs, stub axle, upper & lower wishbones, upper & lower ball joints, wheel bearings, hub assembly, trailing arms.

Cooling System – cooling fan thermo switch, engine cooling fan motors, heater core, oil cooler, radiator, thermostat & housing, viscous fan, water pump. (excluding corrosion).

Air Conditioning – cooling fan, compressor, condenser, evaporator, thermo switch (excluding gas).

Braking System – ABS compressor & modulator, ABS valves, calipers, master cylinder, servo, wheel cylinders, wheel sensors.

Prop Shaft – constant velocity joints, bearings, couplings, universal joints.

Overdrive – casing, gears, internal bearings & bushes, shafts.

Turbo Unit & Supercharger – bearings, housing, rotor, shaft, turbine, wastegate.

Seals & Gaskets – other than those listed above seals and gaskets are only covered where they form part of a repair to an insured component.

NOTE – Any parts not listed above are excluded from cover.

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