Mechanical breakdown insurance protects vehicle owners against large repair bills by covering certain mechanical problems.
Breakdown protection doesn’t mean free repairs. You’ll probably pay a certain amount for every trip to the mechanic, whether that’s a set fee or a percentage of the repair bill. And breakdown insurance is no substitute for good car care. It typically won’t cover repairs caused by abuse or improper maintenance.
Policies vary widely from insurer to insurer and may have different names, such as “vehicle protection plan.” Breakdown insurance can sometimes be transferred if the car is sold, but this depends on the insurer.