What is Mechanical Breakdown Insurance?
A mechanical breakdown insurance policy (MBI) is a true insurance product. Like personal auto or homeowners insurance the MBI creates a direct relationship between the vehicle owner and the insurance company. MBI coverages and premiums are regulated by state insurance departments, assuring a fair price for the coverage provide. Likewise, administrative, underwriting, and claim handling functions are subject to the review and control of state insurance departments. They would also be covered by any state insurance guarantee fund, combined providing a higher level of consumer protection over other types of contracts including those that may be issued at the dealership.
