Mechanical breakdown insurance (MBI) is a type of insurance that covers you for mechanical issues with your car.
It's not just about replacing parts, but also fixing them. Best Mechanical breakdown insurance in NZ can be an important part of your car insurance policy if you're prone to having mechanical problems with your vehicle.
What is Mechanical Breakdown Insurance (MBI)?
Mechanical breakdown insurance is a form of vehicle insurance that covers the costs of repairs or replacement of your vehicle if it breaks down. It’s designed to cover the costs of repairs or replacement of your vehicle if it breaks down.
If you are looking forward to buying mechanical breakdown insurance, you need to know all about its features and benefits. This will help you make an informed decision on whether or not to go for this type of cover for your car.
When does it not make sense to get MBI?
If you're not planning on taking your vehicle out of town, it makes more sense to save the money rather than put it into an MBI policy.
Even if your vehicle is older than five years, there could be other factors at play before purchasing MBI. For example:
- The cost of mechanical breakdown insurance coverage may be higher than what it would cost to repair your car (plus any associated roadside assistance costs).
- You may have a limited mileage allowance with your warranty that can help cover some of those costs during the first few years after purchase.
- You don't want coverage on a particular trip because you're traveling abroad and don't have cars themselves; instead, they'll provide transportation for their guests until needed vehicles are available through rental companies or public transportation services.
The Benefits of mechanical breakdown insurance (MBI)
MBI covers you for the cost of repairs, replacement of your vehicle, and any other costs associated with a mechanical breakdown. It also provides you with compensation if your vehicle has been stolen or is involved in an accident while it’s being repaired.
Mechanical breakdown insurance NZ can be added to a car or home insurance policy so that if something goes wrong with your car, home or other property covered by MBI it will pay out a claim up to its limit. MBI policies are available from most insurers and they include:
- Mechanical breakdown cover – This part pays out when there's a mechanical failure that prevents the use of your vehicle as normal (for example: if something breaks down). If the repair costs more than £100 then this part won't cover everything though - check out our tips on how much MBI covers here!
- Loss of use cover – This part comes into play when there's an unexpected fixed period where you can't drive due to problems with your vehicle or property (for example: because it's being fixed).
Conclusion
In conclusion, mechanical breakdown insurance (MBI) is a great way to protect your vehicle from unexpected repairs. It can also save you money in the long run by helping you avoid expensive bills.
However, it’s important to consider whether or not this coverage makes sense for your specific situation before deciding whether or not to invest in it. For example, if you drive an older car with little value left after depreciation then MBI may not be worth considering because it would be cheaper just paying out of pocket for these repairs rather than paying premiums on top of those costs.
