Currently, you cannot buy State Farm mechanical breakdown insurance (MBI). While State Farm sells many insurance products – including all of the standard types of auto insurance coverage – mechanical breakdown insurance is not among its offerings.

If you’re interested in the sort of vehicle protection provided by an MBI policy, you can consider switching to a provider that does offer this insurance, or you can look into an extended auto warranty. This review will help you understand the difference between the two and offer suggestions for where to buy mechanical breakdown insurance and extended car warranties.

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What Is Mechanical Breakdown Insurance?

Mechanical breakdown insurance, or MBI, is a type of car insurance policy that covers the cost of repairing your car after a breakdown. These policies only cover auto parts that stop working after normal use, so damage that is the result of an accident, act of nature, improper maintenance, rodents, or misuse is not covered. For these occurrences, you’ll need to rely on your comprehensive car insurance policy.

Mechanical breakdown insurance is similar to a car warranty or vehicle service contract. If a part in your vehicle malfunctions, simply take it to any repair shop for inspection. Provide the repair shop with your MBI policy number, and if your claim is approved, your provider will pay the repair shop directly for the cost of parts and labor – minus your deductible. In this way, MBI coverage works much like any other insurance coverage you may have.

The cost of an MBI policy is typically included in your regular insurance premium payments.

What Does Mechanical Breakdown Insurance Cover?

Mechanical breakdown insurance covers most of the parts in your vehicle, with some exceptions for items such as:

  • Auto glass
  • Tires
  • Bumpers and exterior trim
  • Interior upholstery
  • Maintenance services like oil changes
  • Wear-and-tear parts such as brake pads and fuel filters

The complete list of exclusions will vary depending on your insurer. Be sure to read any contract carefully to fully understand your car insurance coverage options before signing up for a policy.

Is Mechanical Breakdown Insurance Worth It?

An MBI policy may be worth it for many drivers, especially if you’d rather pay a small fee month over month rather than pay out of pocket for sudden, costly repairs. However, depending on your financial situation, it may be better to save for the cost of repairs yourself than to purchase an MBI policy.

In many cases, you can only purchase MBI for newer cars that are still protected by a factory warranty. Your manufacturer’s warranty will already cover most vehicle repairs, so you may be paying for unnecessary coverage until your new car limited warranty expires (typically after three years).

That said, MBI policies can provide added peace of mind, protecting you in the event of a major breakdown. Although it’s not likely, it is certainly possible that your vehicle will need a large repair that costs thousands of dollars. MBI policies are usually an inexpensive safety net, with insurers such as Geico offering policies for as little as $30 a year.

State Farm Mechanical Breakdown Insurance Alternatives

While you cannot buy State Farm mechanical breakdown insurance, there are other big car insurance companies that offer MBI policies. Geico is our top-rated provider that offers MBI coverage. Geico mechanical breakdown insurance is relatively inexpensive and is backed by one of the top insurers in the country.

You can see whether your insurer offers MBI by checking online or calling to speak with a representative. If your provider does not offer mechanical breakdown coverage and you’re not interested in switching to a provider such as Geico, your other option is to purchase an extended car warranty.

Extended car warranties offer comprehensive coverage that is similar to MBI policies. However, since the two are not the same, be sure you understand the important differences between them before making a decision.

Mechanical Breakdown Insurance Vs. Extended Car Warranties

Sometimes, websites and providers will use the terms “mechanical breakdown insurance” and “extended car warranty” interchangeably. While these products are similar, they are not exactly the same. There are important differences between each product.

Perhaps the most significant difference is that mechanical breakdown insurance is considered an insurance product, and therefore is regulated by state insurance commissioners. Extended car warranties do not face the same regulations and requirements. Although this may give better peace of mind to drivers who are wary of warranties, it doesn’t mean MBI policies are strictly better. It depends on your vehicle, budget, and needs.

MBI Vs. Extended Car Warranty: Key Differences

Here are a few other distinctions between mechanical breakdown insurance and an extended car warranty:

Mechanical Breakdown InsuranceExtended Car Warranty
RegulationsRegulated by state governmentsNot regulated by state governments
Coverage Eligibility LimitsCoverage must be purchased for newer vehiclesCoverage can be purchased at any time
Contract LengthsCoverage typically lasts no longer than 10 yearsCoverage can last up to 15 years or 250,000 miles
Payment OptionsPaid as part of car insurance premiumCan be paid monthly or in a lump sum
CostCosts an average of $50 to $100 per yearCosts an average of $400 to $800 per year
Coverage LevelsOnly one level of coverageMultiple levels of coverage to choose from

Top Recommendations For Extended Car Warranties

While they aren’t regulated by state governments like insurance providers are, there are still quite a few extended warranty companies that self-regulate well. Reputable extended car warranty companies reliably pay customer claims and honor their contracts while making coverage easy to use. We’ve done the research and found the best extended car warranty companies that stand out among the industry’s many providers.

Two of our most recommended warranty providers are CarShield and CARCHEX. Read a little about each company below, and consider reaching out for a free quote to find out which can offer the best price for the coverage you need.

CarShield: Best Value

Like CARCHEX, CarShield offers six levels of warranty coverage for new and used vehicles. CarShield plans include a specialty plan for electrical and high-tech parts, a basic powertrain warranty, several mid-tier plans, an exclusionary bumper-to-bumper warranty, and a plan for motorcycles and all-terrain vehicles.

Coverage is available for vehicles up to 300,000 miles, and all plans include roadside assistance, towing reimbursement, rental car reimbursement, and a trip interruption allowance. Learn more about this warranty provider by reading our full CarShield review.

CARCHEX: Best For Used Cars

CARCHEX offers several levels of warranty coverage for new and used vehicles. Coverage is available for terms up to 10 years or 250,000 miles, and all contracts include roadside assistance, towing reimbursement, rental car reimbursement, and a trip interruption allowance.

CARCHEX is a highly regarded extended car warranty provider. It has been endorsed by industry leaders such as CARFAX, RepairPal, and Kelley Blue Book, and it holds an accredited A+ rating from the Better Business Bureau (BBB). It also has high customer service ratings, earning a 3.2 out of 5.0 on Trustpilot and scoring 4.4 out of 5.0 stars in our CARCHEX warranty review.


In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of extended auto warranty companies to formulate rankings of the best providers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.

  • Industry Standing: Warranty providers with a history of strong business practices and endorsements from experts receive the highest scores in this category.
  • Coverage: This rating is based on types of extended warranty plans available, coverage terms, and added benefits like roadside assistance.
  • Cost: Our research team reviews sample quotes for a variety of plans and vehicles. Companies with lower prices per year of coverage receive the best scores.
  • Transparency: This score takes into account contract transparency and the availability of a money-back guarantee.
  • Customer Service: We comb through customer reviews and perform our own shopper analysis to get a sense of the responsiveness and helpfulness of each warranty company.

*Data accurate at time of publication