Mechanical Breakdown Insurance

Yes, mechanical breakdown insurance (MBI) can be very valuable if you own a used car, especially if it has high mileage or is out of manufacturer warranty. It can save money on costly repairs like transmission or engine issues.

In New Zealand, MBI may cover major mechanical and electrical failures that aren’t included in standard car insurance. Repairs like transmission issues, ECU failures, or engine faults can cost thousands of dollars, and MBI may help reduce the financial impact by covering these costs. It’s important to find a policy that suits your car and budget.

In New Zealand, the cost of mechanical breakdown insurance (MBI) varies depending on several factors:

• Make and model of your vehicle
• Age and mileage
• Length of cover (usually 1 to 4 years)
• Level of excess you choose
• Type of vehicle (petrol, diesel, hybrid, or electric)

Note: The premium for the full length of cover must be paid in a single payment.

The potential cost of breakdown repairs is worth considering when looking at the cost of MBI.

Mechanical breakdown insurance (MBI) does not cover:

• Accidental damage (e.g. collisions, fire, theft)
• Wear and tear (e.g. tyres, brake pads, wiper blades)
• Routine maintenance (e.g. oil changes, filters, spark plugs)
• Cosmetic damage (e.g. paint, upholstery, trim)
• Pre-existing faults or issues present before the policy started
• Modifications or aftermarket parts not approved by us
• Negligence or misuse (e.g. racing, off-roading, lack of servicing)
• Carrying passengers for hire or reward (e.g. taxi, Uber, ride-share services)
• Transporting goods for payment (e.g. courier or delivery services)

This is a summary only. Always check your policy wording for specific exclusions, as coverage can vary between providers. Autosure MBI covers a wide range of components, but limits, conditions and exclusions apply, so always check the policy wording.

Yes, you can get mechanical breakdown insurance (MBI) for a used car in New Zealand. MBI is designed to cover the cost of unexpected mechanical or electrical failures, which are more common in older vehicles or those no longer under factory warranty.

Underwriting criteria apply, but generally Autosure can provide policies for petrol, diesel, hybrid and electric cars up to 20 years old, that have mileage of less than 200,000km. Always check the policy wording for exclusions and claim limits.

Used cars can be more prone to breakdowns. MBI can help you avoid large, unexpected repair bills and it could increase resale value if the policy is transferable.

Yes, regular servicing is required to keep your Autosure Mechanical Breakdown Insurance policy valid. It is your responsibility, at your cost, to maintain your vehicle in good repair and take all reasonable steps to prevent any damage.

Regardless of the servicing requirements of your vehicle’s manufacturer, you must have your vehicle serviced at whichever of these intervals occurs first, from the start date of the period of insurance:

• Petrol and electric vehicles: 15,000km or 12 months
• Petrol turbo, supercharged and diesel vehicles: 10,000km or 12 months

You must meet the cost of your vehicle servicing and make sure that your vehicle service is recorded. The servicing of your vehicle must be carried out by a suitably qualified service centre. Please see the policy wording for details of what must be checked, replaced or attended to, if applicable, necessary or specified by your vehicle’s manufacturer, as part of the service. Failure to meet these requirements can invalidate your policy, meaning claims may be declined.

It’s a good idea to keep all your service records and receipts, as they may be needed when making a claim.

No, regular car insurance (including comprehensive policies) does not cover mechanical failure. In New Zealand, comprehensive car insurance typically covers accidental damage, theft and fire, natural disasters and third-party property damage. However, it excludes coverage for mechanical breakdowns (e.g. engine or transmission failure) or electrical faults. To protect against unexpected mechanical or electrical failures, many Kiwi drivers choose to take out mechanical breakdown insurance (MBI).

Mechanical breakdown insurance (MBI) covers the cost of repairs or replacement of selected major vehicle components that fail due to mechanical or electrical faults – not due to accidents, wear and tear or lack of maintenance. It typically includes:

• Engine and transmission
• Electrical systems
• Steering and suspension
• Fuel systems
• Cooling systems
• Braking systems
• Drive axles and differential

MBI is designed to protect you from unexpected repair bills once your manufacturer’s warranty expires. Many policies, including Autosure’s include roadside assistance and other useful additional benefits. Coverage varies by provider, so it’s important to check the specific terms, exclusions, and claim process.