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
💡 Tip
Related terms
Related guides
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 2026-06-14
Get Insurance Rate Alerts
We monitor rate filings in all 50 states. Get notified when rates change in your area — and discover new ways to save.
- ✓State-specific rate change alerts
- ✓Seasonal enrollment deadline reminders
- ✓Expert tips to lower your premiums
- ✓New coverage options in your state
Free forever. Unsubscribe with one click. No spam, ever.
Important Disclaimer
This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.