By Mike Jones, President & CEO of autopom! Insurance Services, llc

Buying a car is a big investment. Not only do you have the safety of yourself and your passengers to worry about, but you also have to deal with the stress of repairs or breakdowns. Plus, you have to meet any insurance requirements issued by state law or through a financing contract for your auto loan. Car ownership shouldn’t be this difficult and doesn’t have to be. You can worry less when you understand how mechanical breakdown coverage can help.

Key Differences Between Auto Insurance and Mechanical Breakdown Coverage

Protecting your car goes beyond parking it in the garage or following safe driving practices while on the road. You protect yourself financially from the unexpected costs of repairs when you purchase mechanical breakdown coverage along with auto insurance.

Auto Insurance

When you purchase a car, you may face auto insurance requirements. Typically, if you are using a lender to finance your purchase, the lender will want to protect their collateral while waiting on you to pay off the car loan. Lenders generally require that you provide proof of full-coverage auto insurance on the vehicle before the loan is approved.

For the lender, this policy is a financial safeguard against accidental destruction or damage. Unfortunately, there are still gaps in protection. These can be filled with mechanical breakdown coverage.

State Requirements

Your state will generally require car insurance as well, though this needs to be in place when you register the vehicle. State regulations often require a form of liability coverage and uninsured or underinsured motorist coverage. The state establishes required minimums, often $25,000 per person with $50,000 per incident. Property damage is often set at $25,000 per accident, while uninsured or underinsured is often set according to your liability limits.

Limited Protection

Many people mistakenly believe that their auto ownership liabilities are taken care of with car insurance. However, the required coverage under state law is only enough to protect the other driver if you get into an accident. Your liability policy pays for the repairs on their car or property, as well as any medical expenses related to their injuries. It doesn’t cover the cost of damage to your vehicle.

Full Coverage

If your car is financed and you’re required to have full coverage on the car, this type of policy will pay for the repairs on your vehicle, but only if you are in an accident. It doesn’t cover mechanical breakdowns.

Mechanical Breakdown Coverage

A repair is done on an engine that has mechanical breakdown coverage.

When your car is financed, you aren’t the only one worried about damage to the vehicle. There is a big risk of costly damage for you (and the lender) if car repairs go unaddressed. Unfortunately, serious repairs can pop up unexpectedly and leave you without the funds to repair them when needed. This can result in missed payments or even loan default. This is where mechanical breakdown protection helps.

While it’s not the same as an extended warranty, this additional coverage can serve a similar purpose as a warranty. These plans address many of the major failures that could occur with your car and help out where coverage from a basic auto insurance policy stops.

Mechanical breakdown policies are purchased from a third party and work much like an auto insurance policy. When you have a mechanical or electrical issue, you create and file a claim. If eligible, the provider covers the cost of repairs per the terms of the contract. autopom! offers a vehicle protection plan that makes it easy to take care of your car’s repair needs providing peace of mind.

Protected Elements

When shopping for mechanical breakdown coverage, you may find several plans to cover the most common car failures. These are some of the vehicle systems you can find coverage for:

  • Engine
  • Transmission
  • Drive Axles
  • Steering
  • Suspension
  • Braking System
  • Electrical & Electronics
  • And more

This coverage doesn’t generally apply to routine maintenance and consumable items like brake pads & rotors, shocks, belts, hoses light bulbs and batteries. You’ll also find that non-mechanical and non-electrical parts like upholstery, glass, mirrors and exterior trim are excluded from coverage.

How Are Auto Insurance and Mechanical Breakdown Coverage Similar?

There are several similarities between these forms of protection, apart from the financial benefits they provide. You can make a more informed decision on how to protect your car when you know your options.

Billing and Expense

Mechanical breakdown protection is priced according to the type of vehicle you drive and the provider you use. Costs vary by year, make, model, mileage, and state of residence. Car insurance works the same way, with additional factors influencing the cost. Some of these include driver age, driving record, credit score and more.


Car insurance and mechanical breakdown protection will provide the funds necessary for certain car repairs, but only after the policyholder meets the deductible. The deductible is the amount you are personally responsible for before the coverage takes effect. Having a higher deductible tends to lower the total cost of your coverage. An insurance deductible may start at $500, while breakdown coverage usually starts around $100.

What Are the Costs of Auto Insurance and Mechanical Breakdown Coverage?

A man factors mechanical breakdown coverage into his budget.

The average car insurance premium across the nation is $2,014 per year for full coverage. When compared to mechanical breakdown coverage car owners can expect to pay between $2,600 and $4,200 for a four year service contract. Annually, this amounts to a sum between $650 and $1050.

How You Can Find Mechanical Breakdown Coverage for Your Vehicle

If you are considering mechanical breakdown coverage, autopom! is the place to start your search. We can help you find the right protection to give you peace of mind when auto repairs occur. Contact us today.