If you’re a policyholder wondering whether you have the option to purchase State Farm mechanical breakdown insurance (MBI), you’ve come to the right place. While State Farm does not currently offer MBI policies, there are plenty of alternatives for long-term auto coverage.
In this article, we’ll help you weigh your options and decide what kind of coverage plan may be right for you. We’ll compare MBI and extended warranties, then take a look at the best extended car warranty providers on the market.
To start comparing quotes from our top-recommended providers, click above.
What is Mechanical Breakdown Insurance?
Car repairs can take a heavy toll on your wallet – especially ones that happen late in your vehicle’s life. If you’re concerned about having to shell out thousands of dollars to repair your vehicle, paying a monthly premium for extended auto coverage might be a great option for your peace of mind.
MBI is an auto insurance policy that acts similarly to a manufacturer warranty, covering most vehicle components that sustain damage due to defects in materials or workmanship.
MBI differs from standard collision or comprehensive auto insurance coverage. These policies cover damages after a collision or non-collision events, including theft, vandalism and weather-related incidents.
Does State Farm Offer Mechanical Breakdown Insurance?
Currently, State Farm does not offer mechanical breakdown insurance. The company shows no sign of adding this type of coverage to its plans, as there is no information about MBI on its website.
Fortunately, there are plenty of other options for extended auto coverage. Other insurance companies, such as GEICO, offer MBI policies. Extended car warranties – offered through either your vehicle’s manufacturer or a third-party provider – are another good choice.
Mechanical Breakdown Insurance vs. an Extended Warranty
MBI and extended auto warranties both offer peace of mind that you won’t be stuck footing the bill for expensive repairs after your vehicle’s factory warranty expires.
Let’s look at how MBI stacks up against an extended auto warranty in terms of coverage, cost, term limits, repair flexibility and reliability.
Coverage
With MBI, there’s typically only one policy offered. With an extended warranty, you can choose from many plans with varying degrees of coverage. A third-party warranty usually comes with added benefits like emergency roadside assistance, rental car reimbursement, lockout services and more. If you want these perks with your MBI coverage, you’ll most likely need to add on another insurance policy to cover them.
Cost
MBI can be cheaper than an extended warranty year over year. According to customer reviews, GEICO mechanical breakdown insurance may only cost between $72 and $120 per year. In our industry-wide warranty review, we found coverage plans cost, on average, $585 per year of bumper-to-bumper coverage and $120 per year of powertrain coverage.
On the other hand, MBI policies usually have high deductibles ranging from $200 to $500, which means you’ll be paying more out of pocket for repairs. Many independent providers offer deductibles as low as $0.
Term Limits
As your vehicle ages, the more likely it is to need expensive repairs. The longest MBI policy we found only covers your vehicle up to 7 years/100,000 miles. By comparison, a vehicle protection plan from a third-party provider may offer upwards of 15 years or 250,000 miles of coverage, depending on your provider and plan.
Repair Flexibility
Both MBI and independent warranties will allow you to take your vehicle to the licensed repair facility of your choosing. However, if you purchase extended coverage through your vehicle’s manufacturer, you’ll typically be required to have your car serviced at the dealership.
Reliability
MBI is monitored and regulated by state governments, which may give you added peace of mind about purchasing coverage. On the other hand, the scam calls associated with extended warranties can leave people wondering whether any provider’s service is legit. We’ve identified the most reputable extended car warranty companies available, so you can feel confident purchasing additional coverage for your vehicle.
Below, we’ve compared MBI and extended warranties head to head.
| Mechanical Breakdown Insurance | Manufacturer Extended Warranty | Third-Party Extended Warranty | |
|---|---|---|---|
| Eligible Vehicles | Used cars with fewer than 15,000 miles | New cars and some used cars from dealerships | Most vehicles, regardless of age or mileage |
| Coverage Limit | Varies (7 years/100,000 miles for GEICO MBI) | Varies | Up to 15 years/250,000 miles, depending on the provider |
| Payment Schedule | Payment plan | Pay upfront or on a monthly payment plan | Pay upfront or on a monthly payment plan |
| Average Cost | About $100 per year | Varies | $1,700 to $4,000 total |
| Deductible | Typically $250 | $0 to $250 | $0 to $250 |
Our Picks for Best Extended Car Warranties
If you’re considering extended warranty coverage, you’ll want to get quotes from the best companies. We’ve reviewed every major third-party extended warranty provider, considering factors like coverage, affordability, industry standing and customer reviews. Endurance, CARCHEX and Carshield came out on top.
We’ve compared our top picks to MBI below.
| Mechanical Breakdown Insurance | Endurance | CARCHEX | CarShield | |
|---|---|---|---|---|
| Start Date | Before your vehicle hits 15,000 miles | Anytime | Anytime | Anytime |
| Maximum Length of Coverage | Varies (7 years/100,000 miles for GEICO MBI) | 8 years/200,000 miles | 10 years/250,000 miles | 300,000 miles |
| Number of Plan Options | Typically 1 | 6 | 5 | 6 |
| Deductible | $200 to $400 | $0 to $200 | $0 to $200 | $0 to $100 |
| Transferrable? | ✓ | ✓ | ✓ | |
| Repair Network | Varies by provider, but most allow you to go to your choice of repair shops | Repair facilities certified by the National Institute for Automotive Service Excellence (ASE®) | More than 30,000 facilities nationwide | ASE-Certified Repair facilities |
| Availability | Contact your auto insurer | GET QUOTE | GET QUOTE | GET QUOTE |
Frequently Asked Questions About MBI
Is it worth getting mechanical breakdown insurance?
Mechanical breakdown insurance is often worth the investment for peace of mind and predictable repair costs. But before you decide to take out an MBI policy, consider your vehicle’s reliability and average repair costs, your existing warranty coverage, and the price of MBI. If you have a highly reliable vehicle and feel comfortable footing the bill for repairs, MBI may be unnecessary.
Which insurance companies offer mechanical breakdown coverage?
GEICO, AAA, Allstate and Liberty Mutual offer mechanical breakdown insurance or similar products and services.
Methodology
The Detroit Bureau collects data from every major car insurance provider to formulate rankings of the best insurers. Our in-depth rating system takes into account market share, coverage, pricing, customer satisfaction and ratings from industry experts. Each insurer is given a weighted score in four categories, as well as an overall score out of 10.0.
We recommend auto insurance companies based on these rankings, but we also encourage you to perform your own research and compare quotes to find the best coverage.
