The differences between mechanical breakdown insurance and other protection plans like extended warranties are small but important.
Read our comparison of these two options to determine the right fit for your vehicle.

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Owning and maintaining a car can eat up a large chunk of your annual budget. According to the Bureau of Labor Statistics, the average adult (25 to 55 years old) spends roughly $1,206 a year on car insurance and another $745 on maintenance and repairs. In addition to hundreds or thousands of dollars for gas, accessories, and financing charges, there is little room in any budget for mechanical breakdowns.
If you?ve been looking for a way to save on car repairs, you may have come across both mechanical breakdown insurance (MBI) and extended warranties as options. Keep reading to learn the difference between these two options. We?ll explain why we think extended warranties offer additional benefits that may be lacking under mechanical breakdown insurance, using third-party extended warranty provider CARCHEX as our example.
What Is Mechanical Breakdown Insurance"
Mechanical breakdown insurance covers repairs or replacement parts in the event of an unforeseen breakdown, not including accidents or routine maintenance. Insurance companies normally provide MBI plans. As an insurance policy, mechanical breakdown insurance is paid through an annual pay...