What’s better to get with your new car, extended warranty, or mechanical breakdown insurance?

Most of the time when you buy a car you are offered an extended warranty of some kind. These usually apply to mechanical breakdowns or parts. These extended warranties vary as to the number of years they last, and of course it’s based on how much you want to spend. Most people are aware of the extended warranty, what they aren’t aware of is that there are alternatives. 

Depending on how log you are going to own your car, or even if you plan on selling it after a short time it may make sense to consider either a mechanical warranty through the dealer, or you can buy mechanical breakdown insurance through an insurance company. So, what is the difference between an extended warranty from the dealer and mechanical breakdown insurance from your insurance company? 

Mechanical breakdown insurance pays for car repairs that aren’t related to an accident. This coverage can be purchased through an insurance company. Mechanical breakdown insurance can be added as an endorsement to your auto policy. 

There are several advantages that mechanical breakdown insurance has over an extended warranty. Because mechanical breakdown insurance is offered through an insurance company, it is regulated by the insurance industry for standards and claims. With an extended warranty it may be a case of your word against theirs. 

With mechanical breakdown insurance you can pick how much, or how little of the cars parts you want to cover. An extended warranty generally covers certain areas of the car like the drivetrain, while leaving others out.  

But perhaps the greatest reason that makes mechanical breakdown insurance more attractive than an extended warranty is the cost. Mechanical breakdown insurance is usually less expensive than an extended warranty. Of course, the price varies depending on the age and model of the car. To find out more about mechanical breakdown insurance, visit your insurance agent.