Mechanical Breakdown Insurance for Used Cars: Why an Extended Warranty Is the Smarter Choice

What Is Mechanical Breakdown Insurance (MBI)?

Mechanical breakdown insurance is typically offered by insurance companies as an add-on to your auto policy. It covers certain mechanical failures after your factory warranty expires.

How it works:

• You pay a premium through your insurance provider

• If a covered part fails, the insurer helps cover the repair costs

• Coverage usually includes major systems like the engine, transmission, and drivetrain

The Limitations of MBI

While MBI sounds attractive, there are a few drawbacks:

• Availability: Not all insurers offer it, and it’s often limited to newer vehicles (usually under a certain age or mileage).

• Narrow Coverage: Plans tend to be less customizable and may exclude many components.

• Insurance Tied: If you switch insurers, you may lose your coverage.

• Less Flexibility: You may have fewer choices of repair facilities.

Why an Extended Warranty or VSC Is Better for Used Cars

An extended warranty (vehicle service contract), especially from a trusted Cuvrd partner, is often a smarter alternative to mechanical breakdown insurance for used cars.

Here’s why:

1. Broader Coverage Options Choose between different levels of protection, including exclusionary coverage (the most comprehensive plan available).

2. Works for Older Cars Extended warranties can cover vehicles with higher mileage or age—something MBI often won’t allow.

3. Added Benefits Many plans include roadside assistance, rental car reimbursement, and trip interruption coverage.

4. Flexibility in Repairs Use your preferred licensed repair shop rather than being restricted to a limited network.

5. Transferable Coverage Extended warranties can increase resale value by being transferred to the next owner.

The Cuvrd Advantage

By purchasing through a trusted Cuvrd partner, you know you’re getting reliable protection with clear terms and dependable claims support—something that’s not always guaranteed with mechanical breakdown insurance.

Bottom Line

While mechanical breakdown insurance for used cars is an option, it’s often limited in availability and coverage. For most drivers, a vehicle service contract or extended warranty provides broader protection, more benefits, and better flexibility.

If you want real peace of mind—and the best way to protect your used car—choose an extended warranty through a trusted Cuvrd partner.