Liberty Mutual Mechanical Breakdown Insurance Review (2024)

Mechanical breakdown insurance protects your vehicle from wear and tear, but Liberty Mutual doesn’t offer this coverage.
Written by Jessica Gibson
Reviewed by Pat Roache
Mechanical breakdown insurance (MBI) is optional coverage for repair costs when vehicle parts break down from regular use. MBI is similar to an extended warranty but is less expensive. However, Liberty Mutual doesn’t offer either type of coverage.
If you’re purchasing a new or (new-to-you) used vehicle, the dealership might overwhelm you with optional coverage or extended warranties. MBI is an affordable addition to your
car insurance
policy, but you may not know much about it, and if you’re a Liberty Mutual customer, you’ll have to shop for it with another provider.
To help you make sense of MBI, we’ll walk you through what it does and doesn’t cover. Plus, we’ll tell you which national insurance providers offer this additional coverage, so let’s get started!

Liberty Mutual: mechanical breakdown insurance

Not every insurance provider offers the same types of coverage. Unfortunately, Liberty Mutual doesn’t have
mechanical breakdown insurance
(MBI) or an extended warranty. Why is MBI worth having? It’s an insurance add-on that helps you cover the cost of parts and labor for repairs needed from regular use of your vehicle.
That doesn’t mean you can’t get good coverage from Liberty Mutual. Here’s what they do offer:
  • Collision coverage
    : This insurance financially assists you if you hit another vehicle or stationary object. It also has your back if you get into a single-car accident.
  • Comprehensive coverage
    : With the option of a deductible fund, you can spare yourself from expensive repairs caused by non-accident-related events like weather or theft.
  • Rental car reimbursement
    : This add-on covers your transportation expenses for a rental car while your car is at the shop for repairs.
  • Gap insurance
    : With a newer or leased car, this coverage kicks in to cover your loan balance when it’s considered a total loss.
  • Roadside assistance
    : You can prevent yourself from getting stranded on the side of the road with an unexpected maintenance issue with roadside assistance.
If you’re specifically looking for MBI, you’ll need to shop for it through another insurance company or purchase it through the car dealership where you’re buying your vehicle. 
Check out these national insurance providers that offer MBI:
Allstate typically offers the cheapest MBI coverage, but Mercury’s MBI offers the longest coverage period.
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What does mechanical breakdown insurance cover?

Before you jump into insurance shopping, is MBI even what you’re looking for? You won’t be able to consider adding MBI unless you already have comprehensive and collision insurance. Once you do, you can add MBI to your existing insurance policy
When you think of car insurance coverage, an accident or adverse event usually comes to mind. That’s because traditional insurance typically relates to medical bills and damage in the wake of an accident. When it comes to MBI, you can get coverage for the cost of repairing your vehicle from damage caused by normal wear and tear. It even includes labor costs!
Not every driver can add MBI coverage, though. Your vehicle usually has to be new with low mileage to qualify. If your car is eligible, you’ll carry the coverage for a specific period or miles. For instance, you might have MBI for up to seven years or 100,000 miles.
To use your MBI if your car needs work, you’ll submit a claim to your insurance provider. If they approve your claim, you’ll pay a deductible and schedule repairs at an auto shop. The insurance company will cover parts and labor.
MBI usually covers repairs to these major parts:
  • Engine
  • Drivetrain 
  • Transmission
  • Brakes
  • Steering system
  • Cooling system 
  • Suspension 
  • Electrical system

What does MBI not cover?

MBI coverage takes care of a lot! But it doesn’t handle everything. Most MBI policies won’t take care of routine maintenance like:
  • Tune-ups
  • Oil changes
  • Wheel balancing
  • Spark plugs
  • Brake pads, brake shoes, and brake linings
  • Coolant and fluids 
  • Tires
  • Lubrication
  • Suspension alignment
  • Repairs caused by intentional damage, corrosion, or misuse
  • Damage caused by improper maintenance, an accident, or an environmental cause
Don’t forget that if you’ve got MBI, you’ll already have collision insurance or comprehensive coverage, which will take care of damage to your vehicle after an accident or environmental cause like a deer running into the side of your car.

Mechanical breakdown coverage vs. extended warranty

As you can probably guess, MBI coverage can save you a ton of money if you’re looking at an expensive repair like a
blown engine
. Unlike with an extended warranty, you have the option to choose a repair shop and mechanic you trust. 
Speaking of an extended warranty, you might wonder how it
differs from MBI
. In addition to having more options with repair shops, more cars are usually eligible for MBI since extended warranties only cover new or some used vehicles from dealerships. You’ll also enjoy financial flexibility since you can pay as you go with MBI, whereas an extended warranty requires you to pay for coverage upfront.
If you go with an extended warranty, you typically purchase it in one lump sum from the dealership or a third party. It’ll set you back between $1,000 and $3,000.

The bottom line

Think of mechanical breakdown insurance as just another line of defense to protect your wallet from hefty car repair bills. If you’re driving a newer car and want peace of mind, MBI is probably a good idea. Just remember to shop around and compare coverage from at least three different insurance providers.
If your car is getting older or you’re trying to reduce your car insurance costs, it’s alright to pass on MBI. Collision and comprehensive coverage are much more important, and you’ll be able to keep these policies for the entire life of your vehicle. 
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