Why Should I Consider Mechanical Breakdown Coverage?

October 26, 2018
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I’d like to start by telling you a quick story that involves my son. Kenny and I went to a car dealership a while back because he needed to buy a car and saw a used 2003 Nissan Sentra that he was interested in. Being the protective father, I went with him to assist in working with the sales agent and the finance guy. Though the story of our dealings with the sales agent is interesting, I’ll just say that we were given a fair price for the car and were passed along to the finance guy.

During the process of setting up the financing of the car, the agent asked Kenny if he wanted mechanical breakdown coverage on the car. He really pushed hard for the sale despite the fact that I told him that my agency sells the exact same product. Needless to say, we didn’t purchase the coverage through the dealer.

The next day at the agency, we ran a quote through Mercury’s mechanical breakdown coverage program and came up with a price of $495.00 for a two year policy. The dealership quoted us $1500 for the exact same policy, a markup of over 300%.

So what is mechanical breakdown coverage? Simply put, it protects your vehicle beyond the manufacturer’s warranty. Big ticket items are expensive. For instance, a repair to the air conditioning system on an American car averages $1,648 and a European car averages $2,149. A repair on a vehicle’s transmission on an American car averages $5,482 and on a European vehicle, the cost averages $8,875. And most vehicles break down after the initial 36,000 miles which is usually covered by the manufacturer.

So why should you consider purchasing a Mercury mechanical breakdown policy from us?

  • As aforementioned, the dealership will mark the price up an average of 300%
  • Repairs can be done at any licensed U.S. or Canadian repair facility
  • There is no limit on the number of claims up to the maximum liability
  • Your out-of-pocket expense is limited to your deductible
  • Mercury pays for fluids, filters, taxes, and diagnostic fees for covered repairs
  • All claims are handled by Mercury, not a third party administrator (TPA)
  • 60 day free look
  • Transferable one time for a small fee if you sell the car to a private party

Key Considerations

  • The risk of unexpected breakdowns and repair costs increase over time
  • The ability to transfer coverage to a private party may increase the resale value of the vehicle along with increasing the chance of making the sale
  • Finally, the electronic systems and technology in newer cars greatly increases repair costs
  • Other coverage benefits include 24-hour roadside assistance, rental vehicle assistance, tire protection, and trip interruption protection

Please feel free to call us at 760-893-8055 for more information on Mercury’s Mechanical Breakdown coverage.

--Ken May