Mechanical Breakdown Insurance NZ


“Should I get MBI in NZ”

Should I Get Mechanical Breakdown Insurance in NZ?

should i get mechanical breakdown insurance

Car ownership in New Zealand can be both exciting and nerve-wracking. While having your own transportation is incredibly convenient, it also comes with its fair share of risks and responsibilities. One of these risks is a car breakdown, which can be incredibly expensive to fix. That’s where mechanical breakdown insurance comes in.

What is Mechanical Breakdown Insurance?

Mechanical breakdown insurance (MBI) is a type of insurance policy that covers the costs of repairing or replacing parts of your car that have broken down. This can include everything from your engine to your transmission, and can help cover the costs of both parts and labour. For a more comprehensive explanation, you can read our Ultimate Guide to Mechanical Breakdown Insurance in NZ

Is Mechanical Breakdown Insurance the Same as Car Insurance?

No, mechanical breakdown insurance is not the same as standard car insurance. While car insurance covers damage caused by accidents, theft, and other incidents, mechanical breakdown insurance specifically covers the costs of repairing or replacing parts of your car due to non-accident related breakdowns.

What Does Mechanical Breakdown Insurance Cover?

Every mechanical breakdown insurance policy is different, but most policies cover the following:

  • Engine breakdowns
  • Transmission breakdowns
  • Electrical system breakdowns
  • Brake system breakdowns
  • Steering and suspension system breakdowns

Some policies may also cover additional systems, such as air conditioning or heating, but this varies from policy to policy.

How Much Does Mechanical Breakdown Insurance Cost?

The cost of mechanical breakdown insurance varies depending on a number of factors, such as the make and model of your car, its age, and how many kilometres it has travelled. Generally, the cost of mechanical breakdown insurance ranges from $300 to $600 per year.

How Can I Decide Whether or Not to Get Mechanical Breakdown Insurance?

The decision to get mechanical breakdown insurance ultimately comes down to your personal preferences and circumstances. Here are some factors to consider:

The Age of Your Car

If you have an older car, it may be more prone to breakdowns due to wear and tear. In this case, mechanical breakdown insurance may be a worthwhile investment. You can find the age of your car using this free handy tool.

Your Budget

If you don’t have a lot of money set aside for car repairs, mechanical breakdown insurance can provide peace of mind knowing that you won’t be hit with unexpected expenses.

Your Driving Habits

If you use your car frequently for work, life, or travel, you may want to consider mechanical breakdown insurance to protect yourself from costly breakdowns while on the road.

Your Risk Tolerance

Ultimately, the decision to get mechanical breakdown insurance comes down to your appetite for risk. If you’re comfortable taking on the risk of paying for unexpected repairs out of pocket, you may not need mechanical breakdown insurance. However, if the thought of a costly breakdown keeps you up at night, mechanical breakdown insurance may be worth the investment.

What Are the Benefits of Mechanical Breakdown Insurance?

There are several benefits of mechanical breakdown insurance, including:

  • Peace of mind knowing that you’re covered in the event of a breakdown
  • Protection against potentially expensive repair bills
  • Access to a network of trusted mechanics and repair shops

What Are the Drawbacks of Mechanical Breakdown Insurance?

While mechanical breakdown insurance can be beneficial, there are some potential drawbacks to consider, including:

  • The cost of the insurance premium
  • The possibility of limited coverage and exclusions within the policy
  • The possibility of repair work being limited to specific mechanics or shops

Final Thoughts

Ultimately, the decision to get mechanical breakdown insurance comes down to your individual preferences and circumstances. While it can provide peace of mind and protection against unexpected repair bills, it does come with a cost. Consider your budget, driving habits, and risk tolerance when deciding whether or not to invest in mechanical breakdown insurance.

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