What does Mechanical Breakdown Insurance cover?

SP Insurance 

There are a number of insurance companies offering Mechanical Breakdown Insurance in New Zealand, AA, Protecta, Autosure, Provident, Janssen, etc., and some Mechanical Breakdown Insurance are provided by the car dealers themselves, such as Toyota's own Mechanical Breakdown Insurance.

What is Mechanical Breakdown Insurance?

Simply put, Mechanical Breakdown Insurance is a guarantee for automotive machinery and electronic faults. These faults are not covered by car insurance. As we all know, the mechanical repair cost of a car is not cheap in New Zealand, and it’s more expensive for a European car (could cost thousands of dollars).

What are covered?

We use Autosure as an example. Its Mechanical Breakdown Insurance mainly covers engine, fuel system, turbo unit, automatic transmission, manual transmission, electrical, clutch, transfer box, overdrive, prop shaft, suspension, front wheel drive assembly, differential, air conditioning systems, cooling systems, steering etc. Extreme plan, the most comprehensive cover of Autosure includes more parts in addition to above coverage.

What are not covered?

  • All pre-existing conditions, unless vehicle owner have those problems repaired at Autosure authorised repairer and at their own cost.
  • Repairs related to manufacturer’s recall or any component design fault
  • Chassis, panel, paintwork, glass, upholstery and any other cosmetic item
  • Battery, exhaust systems, catalytic converters, tyres, entertainment system, heated sear elements, light bulbs, communication systems, fuel tanks, keys and remotes
  • Costs related to regular service, maintenance, adjustment or tuning
  • Costs arising from the failure of the cambelt
  • Repairs related to contamination, perishing, corrosion, rust, consequential loss or damage, accident damage, fire damage, water damage, theft and other external causes
  • Repairs resulting from incorrect use of fuel, oil, lubricant, coolant or any other fluid
  • Any repairs carried out with Autosure’s approval

Period of coverage, premium, max kilometre and max age of vehicle

Period of coverage generally ranges from 6 months to 48 months. You can choose to purchase the protection for 6 months, 12 months, 24 months, 36 months or 48 months at a time according to your situation. Unused guarantees can be transferred to new buyers when the vehicle is sold.

Premium ranges from a few hundred to thousands. Overall, the premium of Mechanical Breakdown Insurance for Japanese and American cars is lower than that of European cars, and the premium of top luxury cars is undoubtedly the highest.

The most comprehensive product of Autosure is called Extreme. According to the type of vehicles, the maximum age of the covered vehicles is 10-12 years, and the maximum kilometer is 100,000-160,000.b Essential is another product of Autosure that covers less than Extreme. The maximum age of covered vehicle is 12-20 years, and the maximum kilometer is 160,000-250,000.

Autosure also has a product that specifically covers electric vehicles and hybrid vehicles. The maximum age of covered vehicles is 10-16 years, and the maximum kilometer is 120,000-180,000.

Some mechanical insurance companies can cover Uber and taxi use, please contact us for a quote.

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