You’re on your way to an Atlanta Falcons game and your car engine busts — causing your car to completely break down. What do you do? If you have Mechanical Breakdown Insurance (MBI), you’re covered, meaning that instead of going to the mechanic and paying an arm and a leg for a repair, you can save that extra cash for your next hot dog at Mercedes-Benz Stadium.
What is Mechanical Breakdown Insurance?
Mechanical Breakdown Insurance is an optional, supplemental car insurance policy that covers major failures that are often excluded in basic auto insurance. These failures include:
- Faulty brakes
- Transmission issues
- Electrical system failures
- Punctured A.C. hose
- And more
Although MBI does not cover routine maintenance costs or damages caused by poor care, it is a great option instead of, or in addition to, an extended warranty.
MBI vs. Extended Warranty
There can be a decent amount of similarity between an MBI and your car’s warranty, but in general, MBI plans are often broader and cover failures that your warranty may not. MBIs are often cheaper than extended warranties, according to Value Penguin. Most importantly, MBI plans last longer than warranties, which often last only three years, meaning you can be sure you’re covered long after your warranty expires.
MBI Benefits
- Interest-free payments
One of the biggest benefits of MBI is that it gives you the ability to pay out over months, rather than a lump sum or interest-filled payments on your auto loan. This gives you more financial freedom and flexibility, paired with a long-term sense of safety for your car.
- Transferable
Depending on your policy, MBIs are sometimes transferable to a new owner if you decide to sell your car. Many MBIs can also be cancelled at any time.
- Peace of mind
While car repairs are not common for new cars, which is what many MBIs require for coverage, they can be costly when they do occur. If your financial status allows you to purchase the additional coverage, it can be a safe and reliable option to costlier one-time repairs.
How Do I Get MBI?
Georgia Heritage Federal Credit Union’s MBI plans cover 100% of all covered components, parts and labor charges, wear and tear coverage, and much more. By trusting a non-profit credit union, you can be sure that you’re protected by a company dedicated to community — not revenue.
To learn more about personalized MBI coverage and how we can help, contact us today.
