Can USAA MBI protect your car?

Cristina Avatar By: Cristina | Last updated May 5, 2020

USAA MBI mechanical breakdown insurance woman checking car under the hood car on the road


MBI stands for mechanical breakdown insurance and is a form of vehicle protection that is worthy of your consideration. The duration of an MBI policy is of approximately 7 years or 100,000 miles, whichever comes first. Mechanical breakdown insurance providers usually cover only new vehicles.

While an MBI is quite similar with an extended car warranty, there are some differences between them. One of the most important ones is the fact that an MBI is not so taxing on your wallet because it is part of the car insurance and you can pay for it in monthly installments. Extended car warranties on the other hand usually come with a high upfront cost.

With MBI you can choose where to take your car for repairs, while not all extended car warranties allow you to.

USAA Mechanical Breakdown Insurance – What does it offer?

USAA is short for United Services Automobile Association and it is one of the most reputable insurance companies in the United States. The company was founded almost 100 years ago and offers various types of other services such as: banking, investing, health insurance, life insurance, car insurance and more.

There is a bit of a drawback regarding the USAA and that is the fact that not just everyone can become a member. USAA has a policy of only serving military members and their families, including veterans, cadets, reserve members and so on. So if you are not related in any way to the military, directly or through a family member, you are not eligible for USAA’s services.

What kind of coverage does USAA offer?

USAA doesn’t call its policies “MBI policies”, but rather “extended car warranties”, because they also cover vehicles that are not new. The company divides its available plans in 2 major categories: manufacturer wrap protection and comprehensive protection.

Manufacturer wrap protection is suited for cars that still have 30 days (1,000 miles) or more left on their manufacturer’s warranty. Once that warranty expires, the USAA one starts.

This type of protection offers a similar coverage to powertrain warranties and it is available for both diesel and gasoline cars. Only the basic powertrain components are covered. The engine, transmission, drive axle, are NOT covered.

Comprehensive protection is the other available option and in order to be eligible for this plan your car has to be up to 10 years old and to have up to 115,000 miles on the meter.

Unlike the manufacturer wrap protection, this policy covers almost your entire car, being similar to your manufacturer’s warranty.

USAA offers a 60-day money back guarantee with both these plans.

Other benefits included with USAA

USAA comes with some very attractive benefits. One of them is the fact that there is no down payment you have to pay to enroll.

Another advantage is the fact that there is no deductible charged either.

USAA offers 24/7 roadside assistance and unlimited rental car reimbursement. The latter is a very big deal, as rental car reimbursement is usually offered for only 5 to 7 days.

Another great benefit included with USAA is the deployment deferment feature, which allows you to put your warranty on hold until you get back home.

You can pay for your USAA warranty in up to 18 monthly installments.

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