Auto Insurance

Mechanical Breakdown Insurance (MBI)

An insurer-offered alternative to extended warranties that covers mechanical failures in newer vehicles.

Last reviewed: May 2026 · Editorial methodology

Definition

Mechanical breakdown insurance (MBI) covers the cost of repairing mechanical and electrical failures in your vehicle — similar to an extended warranty but issued by an insurance company rather than a dealer or third-party warranty company. Geico's MBI is the most well-known, available for vehicles under 15 months old and under 15,000 miles at purchase. Coverage extends for up to seven years or 100,000 miles and costs $25–$35 per month. MBI is typically more reliable and cheaper than dealer extended warranties, which are often overpriced and full of exclusions. Like all insurance products, MBI is subject to state insurance regulation, providing consumer protections that third-party warranties do not.

Where this term matters

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

EndorsementA written modification to a policy that adds, removes, or changes coverage — same as a rider.DeductibleThe out-of-pocket amount you pay before insurance starts covering a claim or health expense.Full CoverageIndustry shorthand for a policy with liability plus collision and comprehensive — not a specific policy type.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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