If you’re buying a used car in New Zealand, you’ve probably heard of mechanical breakdown insurance (MBI). But what exactly is it, and do you need it? In this blog, we’ll break down what mechanical insurance covers, who it’s for, and why it’s one of the smartest investments for used car owners in NZ.
🛠 What Is Mechanical Breakdown Insurance?
Mechanical breakdown insurance (MBI) is a special type designed to cover the cost of repairs caused by sudden mechanical or electrical failures. It is particularly beneficial for used cars or vehicles no longer under factory warranty.
With repair costs often running into thousands of NZD, MBI helps car owners manage these risks and drive with confidence.
👥 Who Should Consider Mechanical Breakdown Insurance?
MBI is ideal for:
1. Used car owners – Most used vehicles, especially older models, are at higher risk of mechanical failure.
2. Long-term vehicle users – Planning to keep your car for several years? MBI can offer extended protection and peace of mind beyond the factory warranty.
🔍 Key Features of Mechanical Insurance in NZ
1. Coverage Scope
Most policies cover major systems such as the engine, transmission, brakes, cooling system, electrical systems, and air conditioning.
2. Policy Terms
Policies can range from 1 to 3 years, depending on the provider and vehicle condition.
3. Eligibility Criteria
Typically, the car must be under a certain age (e.g., under 20 years) and mileage limit (e.g., 250,000 km) to qualify.
4. Claim Limits and Excess
Some policies may include claim limits per component (e.g., $5,000) or an excess fee. It’s important to review these terms before purchasing.
5. Available Only Through Dealers
In most cases, mechanical insurance must be purchased at the time of buying a car, and only through registered car dealers.
6. Extra Services
Some plans also include 24/7 roadside assistance, towing services, or emergency breakdown support across New Zealand.
💡 Why Mechanical Insurance Is Worth It for NZ Used Car Owners
✅ Protect Against Expensive Repairs
Repairing major components like engines and transmissions can cost thousands. MBI covers these high-cost repairs and shields you from surprise expenses.
✅ Extend Protection After Factory Warranty Ends
Most used cars are out of warranty. Mechanical insurance fills this gap, offering coverage that can extend your car’s lifespan and value.
✅ Lower Unexpected Financial Stress
Even well-maintained vehicles can suffer from unexpected failures. With MBI, a covered repair that might cost $2,000 could be resolved with just a small excess fee — less than $150.
✅ Increase Vehicle Resale Value
Selling a car that comes with active mechanical coverage? It’s a huge plus for buyers, making your car easier to sell and more desirable on the used market.
✅ Flexible Coverage & Component Protection
MBI offers flexible coverage options based on your needs. For example, MIG CARS’ partnered policies typically offer $5,000 per part coverage—enough to cover most major repairs.
✅ NZ-Wide Repair Network
Mechanical insurance is accepted nationwide—you’re not limited to your purchase location. Most insurers partner with trusted, certified workshops, so you get professional repairs anywhere in New Zealand.
🎁 Bonus: Free 3-Year Mechanical Warranty at MIG CARS
At MIG CARS, most of our used cars for sale come with free 3-year mechanical breakdown insurance to protect our clients. Diesel and European models are given 1-year mechanical breakdown insurance. This warranty includes extensive coverage and access to trusted repair networks across New Zealand. So whether you're based in Christchurch, Auckland, or anywhere in New Zealand, you’ll enjoy complete peace of mind long after your purchase.
Visit our Christchurch yards or browse our stock online. We also offer video viewings and nationwide delivery—making it easier than ever to buy with confidence, wherever you are in NZ.