This insurance will cover the costs of certain types of mechanical breakdowns of your car.

Covers against the cost of breakdowns of household appliances or motor vehicles.

A policy, contract, or agreement that undertakes to perform or provide repair or replacement service, or indemnification for that service, for the operational failure of a motor vehicle due to a defect in materials or skill of work or normal wear and tear, and that is issued by an insurance company authorized to do business in California. A mechanical breakdown insurance policy (MBI) is a true insurance product. Like personal auto or homeowners insurance, the MBI creates a direct relationship between the vehicle owner and the insurance company. MBI coverages and premiums are regulated by the California Department of Insurance, assuring a fair price for the coverage is provided. Likewise, administrative, underwriting, and claim handling functions are subject to the review and control of the California Department of Insurance. They would also be covered by the California State Insurance Guarantee Fund providing a higher level of consumer protection over other types of contracts, including those that may be issued at the dealership or from a third party company.