california mechanical breakdown insurance: myths, facts, and smarter control over car repairs

California classifies mechanical breakdown insurance (MBI) as true insurance, not a dealer warranty. It helps pay for sudden mechanical failures after factory coverage - but never maintenance, wear items, or neglect. Documentation matters.

Myths and facts

• It equals an extended warranty. In California it's regulated insurance with clear claim and refund rights.
• Only new cars qualify. Many used cars are eligible; insurers set mileage and age limits.
• Everything is covered. Wear items, preexisting conditions, and poor maintenance are common exclusions.
• You can't choose your shop. Usually you can; labor-rate caps may still apply.

A quick pause. Keep records and receipts.

How it really plays out

A water pump fails on I-5; the driver calls MBI, chooses their shop, and approval arrives the same day - deductible applied, insurer pays the rest.

What to examine first, calmly

• Coverage style: named components or exclusionary.
• Deductible: per visit or per repair.
• Labor caps and diagnostic time.
• Parts allowance: OEM vs aftermarket.
• Transfer, cancellation, and refund terms.