Mechanical Breakdown Insurance

Next to your home, your automobile is one of your most expensive investments, and is likey be the one that costs the most to maintain.   We offer several types of Mechanical Breakdown Insurance (MBI) coverages for both New and Used vehicles through various A+ carriers with costs and benefit that blow away the contracts offered by car dealers.    Check it out! Check it out!    Questions & Anwers     Sample Rates Additional Information     What is a Warranty     What is a Extended Warranty     What is Mechanical Breakdown Insurance     What is a Vehicle Service Contract Contact us for more information and a quote on your specific needs! Check it out No Limit on Claims! Repairs can be done by any licensed repair facility in the United States! Deductibles a low as $25! Towing, Rental, Travel, Road Hazard benefits included! The policy is transferable when sold to another individual, increasing the value! Terms from 1 year 12,000 miles to 6 years 100,000 miles! Questions & Answers Q. Isn't my car coverd by the manufacturer's warranty? A. Statistics show big repair bills can come after the manufacturer's warrant has expired.  The MBI policies we offer cover many more components not covered by the factory drivetrain warranty.   In addition, MBI policies provide towing, rental, travel and tire road hazard benefits.   Q. Which vehicles are eligible? A. You can buy coverage on both NEW and USED vehicles.    For new vehicles you can purchase the policy up until Vehicle age for Used vehicles is limited to the current model year and 9 prior model years.       Q. What coverages / Terms are avialble  A. Benefits are Unlimited!   New cars are eligilbe for up to 6 years and 100,000 miles.    Used cars are eligilbe for up to 4 years and 50,000 miles   Q. Can't I buy the same policy from the dealer? A. You can try to negotiate a similar policy and then haggle your way to a similar price if your able, or simply elimate the hassle and haggling and call us for an easy to read brochure of coverages and the associated premium.   Q. I already bought through the dealer and paid a lot more!    Can I cancel my dealer contract / policy? A. YES!  Although the dealer may not readily admit, State law requires that these contracts contain minimum cancellation clauses.    What does this mean?   All polices can be cancelled within 30 days for a full refund less a $25 processing fee!  If you've had the policy over 30 days you will receive a "pro-rata" refund, which means you only pay for the time you have used, and they will refund the balance paid.   Q. Do I have to buy the policy with cash? A. No.  Ask your lender about including the premium in the financing package, or choose from payment plans offered by the insurance carrier, or simply use your credit card.. Sample Rates: Make / Model New Car 6 yrs / 100,000 Miles Used Car 3 years / 36,000 Miles Honda Acord / Ford Escort $350.00 375.00 Dodge Caravan /  Nissan Maxima $465.00 $470.00 Jeep Cherokee / Ford Tarus $505.00 $470.00 Additional Information Mechanical breakdown coverage polices and contracts, due to their unique nature, generate more than their fair share of confusion. To help you have a better understanding of this product, this section lists the definitions of some of the terms and phrases that have unique or special meanings in mechanical breakdown. 1. WHAT IS A WARRANTY? A warranty is the first layer of mechanical breakdown coverage on any new vehicle. The coverage is provided, at NO COST to the vehicle purchaser, by the Manufacturer. A warranty has a specific term expressed in months or miles (12 months or 12,000 miles, 36 months or 36,000 miles, etc.) and usually protects the ENIRE vehicle against defect in workmanship and material. Special federal laws (and in some cases, state laws) regulate the manufacturer's performance under the warranty coverage. For all intents and purposes, this is a true "bumper to bumper" protection. 2.   WHAT IS AN EXTENDED WARRANTY? Actually a "limited extended warranty, this extends mechanical breakdown protection beyond the basic warranty term, again AT NO COST to the vehicle purchaser, and applies to specific assemblies contained within the vehicle. The best example is the powertrain warranty provided by certain manufacturers. In this case, only the powertrain (engine, drive axle, transmission) is protected for an additional length of time or miles (ex: 6 years or 60,000 miles, 7 years, or 70,000 miles, etc.). Another example is the special factory warranty required by state and federal laws covering emissions and exhaust system components. The limited extended warranty does not cover all of the components contained in the covered assemblies and may impose a deductible that the vehicle owner must pay for each breakdown. 3. 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 coverd by any state insurance guaurantee fund, combined providing a higher level of consumer protection over other types of contracts including those that may be issued at the dealership.  4. WHAT IS A VEHICLE SERVICE CONTRACT? A vehicle service contract (VSC) is a written agreement between the vehicle buyer and the dealership that sold the service contract. This contract is often mistakenly called an extended warranty". According to the contract language, the dealer becomes responsible for providing mechanical breakdown coverage or reimbursement to the vehicle owner. Most service contracts are restrictive and conditional. They are not always regulated and may not be backed by an insurance company. Also, in most states, the dealer is allowed to set the actual price of the contract at whatever level he chooses. GO TO: Consumer Guides

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Last updated: 01/26/2005