Mechanical breakdown insurance (MBI) covers costly mechanical and electrical failures your car insurance does not. Compare MBI providers, coverage levels and costs for New Zealand vehicles.
The leading provider of mechanical breakdown insurance in NZ. Assurant (formerly Protecta) is well-known among dealers and drivers alike - get a quote below.
Understanding MBI and why it matters for New Zealand vehicle owners.
Mechanical breakdown insurance (MBI) is a policy that covers the cost of repairing or replacing mechanical and electrical components in your vehicle when they fail due to breakdown or defect. It is sometimes referred to as an extended warranty, mechanical warranty, or vehicle protection plan.
MBI fills a gap that standard car insurance does not cover. Your car insurance protects against accidents, theft, fire and weather damage. MBI protects against the vehicle itself breaking down - engine failures, transmission problems, electrical faults and other mechanical issues that occur through normal use.
MBI is especially common for used imported vehicles in New Zealand. With a large proportion of the NZ vehicle fleet being Japanese imports, many vehicles arrive without a transferable manufacturer's warranty. MBI provides peace of mind for owners of these vehicles.
For general information about insurance products in New Zealand, see the Financial Markets Authority (FMA) insurance guide.
Key fact: A single major mechanical repair in New Zealand can cost $3,000 - $15,000 or more. Transmission rebuilds typically run $3,000 - $7,000, engine replacements $5,000 - $15,000+, and turbocharger replacements $2,500 - $6,000. MBI helps protect against these unexpected costs. The Motor Trade Association (MTA) provides guidance on vehicle repairs and fair pricing.
These two products cover entirely different risks and work best together.
| Feature | Mechanical Breakdown Insurance | Car Insurance |
|---|---|---|
| Engine failure | ✓ Covered | ✗ Not covered |
| Transmission breakdown | ✓ Covered | ✗ Not covered |
| Electrical faults | ✓ Covered | ✗ Not covered |
| Accident damage | ✗ Not covered | ✓ Covered |
| Theft | ✗ Not covered | ✓ Covered |
| Weather / natural disaster | ✗ Not covered | ✓ Covered |
| Turbocharger failure | ✓ Covered | ✗ Not covered |
| Air conditioning system | ✓ Most plans | ✗ Not covered |
| Third-party liability | ✗ Not covered | ✓ Covered |
| Windscreen / glass | ✗ Not covered | ✓ Covered (comp) |
| Brake pads / tyres | ✗ Wear-and-tear excluded | ✗ Not covered |
Note: MBI and car insurance complement each other. Neither product replaces the other. Most vehicle owners carry both.
The MBI claims process from breakdown to repair.
Your vehicle experiences a mechanical or electrical failure during normal use.
Call your MBI provider's claims line. Most require you to call before authorising repairs.
Take your vehicle to an approved repairer or MTA-approved workshop for diagnosis.
The MBI provider assesses the claim against your policy terms and authorises the repair.
The repairer completes the work. The provider pays the repairer directly or reimburses you, minus your excess.
Age and mileage limits that determine whether your vehicle qualifies for MBI.
Most MBI providers cover vehicles up to 10 - 12 years old at the policy start date. Some providers extend this to 15 years for certain makes. Vehicles over 15 years old are generally ineligible for new MBI policies.
Typical entry limits are 150,000 - 200,000 km at the time of policy purchase. Some providers accept vehicles up to 250,000 km at a higher premium. Policies may also cap total mileage during the cover period.
A documented service history is usually required. Some providers require a pre-purchase inspection. Vehicles without service records may be declined or offered limited cover only.
The vehicle must be in good mechanical condition at the policy start date. Pre-existing faults and known issues are excluded. Some providers require a mechanical inspection before cover begins.
Both NZ-new and imported vehicles (commonly Japanese imports) are eligible. However, some grey-import models with limited parts availability may attract higher premiums or restricted cover.
Significantly modified vehicles - including engine swaps, performance chips, aftermarket turbo kits and lowered suspension - may be excluded or subject to specific conditions.
Coverage varies by plan level. Here is what is typically included at each tier.
Covers the core drivetrain components - engine, transmission and differential. The most affordable MBI option for basic protection.
Covers virtually all mechanical and electrical components. Often includes towing, rental car allowance and consequential damage. The most complete MBI protection.
Covers a defined list of mechanical and electrical components. Wider than powertrain but not as broad as comprehensive. A balance of cost and protection.
The most frequently claimed components and typical repair costs.
| Component | Typical Repair Cost | Common Causes |
|---|---|---|
| Automatic transmission | $3,000 - $7,000 | Wear, overheating, fluid degradation |
| Engine (major) | $5,000 - $15,000+ | Timing chain/belt failure, oil starvation, head gasket |
| Turbocharger | $2,500 - $6,000 | Oil feed issues, bearing wear, carbon buildup |
| ECU / engine computer | $1,500 - $4,000 | Water ingress, electrical failure, age |
| Air conditioning compressor | $1,000 - $2,500 | Compressor failure, refrigerant leak |
| Power steering | $800 - $2,500 | Pump failure, rack wear, fluid leak |
| Fuel injection system | $1,000 - $3,000 | Injector failure, pump failure |
| CVT transmission | $4,000 - $8,000 | Belt/chain wear, overheating (common in NZ Nissan/Subaru) |
| Differential | $1,500 - $4,000 | Bearing failure, seal leak, gear wear |
| Hybrid battery pack | $3,000 - $8,000 | Cell degradation, age (select MBI plans only) |
Disclaimer: Repair costs are indicative estimates based on NZ market rates as at March 2026. Actual costs depend on vehicle make, model, parts availability and workshop rates.
Different vehicles and ownership stages call for different MBI approaches.
Where you buy your MBI can affect price, coverage and your rights.
| Feature | Dealer-Offered MBI | Standalone MBI |
|---|---|---|
| When purchased | At the point of vehicle sale | Any time (subject to eligibility) |
| Pricing | Often marked up; may be bundled into finance | Generally more competitive |
| Cooling-off period | Varies - check the policy | Typically 10 - 14 days |
| Choice of repairer | May require dealer's own workshop | Usually any MTA-approved workshop |
| Finance add-on | Can be rolled into vehicle finance (adds interest) | Paid separately |
| Comparison shopping | Limited - pressure to decide at the time | Full ability to compare options |
| Cover terms | Varies widely between dealers | Standardised product terms |
Tip: If a dealer offers MBI at the point of sale, you are not obligated to accept it on the spot. Take the policy wording home, compare it with standalone options, and make a decision within the cooling-off period. The Consumer NZ website has guidance on your rights when purchasing dealer add-on products. The MBIE also regulates fair trading practices.
Compare MBI providers operating in New Zealand.
Assurant (rebranded from Protecta Insurance in January 2025) is one of New Zealand's largest MBI providers. They offer a range of mechanical breakdown plans from powertrain through to comprehensive, covering vehicles up to 15 years old or 250,000 km. Plans include towing, rental car allowance and roadside assistance. Available through dealer networks and directly.
MWS has been providing mechanical warranties in New Zealand for over 30 years. They offer tiered cover levels including their top Platinum plan which covers most mechanical and electrical components. Claims are paid directly to the repairer.
Many NZ car dealers offer MBI through partnerships with warranty providers such as Autosure, MotorSure, and other underwriters. These products are typically offered at the point of vehicle purchase and may be bundled into vehicle finance.
How MBI is regulated and what protections exist for consumers.
Indicative annual premiums by vehicle type and age.
Disclaimer: These figures are indicative estimates based on publicly available pricing as at March 2026. Actual premiums depend on vehicle make, model, age, mileage, condition and provider. European and turbocharged vehicles typically attract higher premiums due to more expensive parts and repair costs.
What to look for and watch out for when purchasing MBI in New Zealand.
Do not rely on a summary. Read the complete policy document to understand exactly which components are covered and which are excluded. Pay particular attention to the exclusions list.
Some MBI policies cap individual claims at the vehicle's market value or a fixed amount. Others have per-component limits. Make sure the limits are high enough to cover a major repair on your vehicle.
MBI excess amounts vary from $100 to $500+. A higher excess lowers the premium but means you pay more out of pocket per claim. Consider what you can comfortably afford.
Dealer-offered MBI may be convenient but can be more expensive, especially when rolled into vehicle finance. Always compare with standalone providers before deciding.
Most MBI providers require proof of regular servicing per the manufacturer's schedule. Missing service records can void your coverage. Keep receipts and logbooks.
Some MBI policies restrict you to specific repair networks. Others allow any MTA-approved workshop. Understand where you can get repairs done before you need them.
Clutch plates, brake pads, tyres, batteries and wiper blades are almost always excluded as wear-and-tear items. Some policies also exclude seals and gaskets unless they fail catastrophically.
MBI policies typically have a cooling-off period of 10 - 14 days. Use this time to review the policy wording carefully. If it does not meet your expectations, cancel within this period for a full refund.
Items and situations that MBI typically does not cover.
Brake pads, clutch plates, tyres, wiper blades, batteries, light bulbs, filters and belts. These are considered consumable items that wear out through normal use.
Any mechanical or electrical fault that existed or was developing before the policy start date. Some providers require a pre-purchase inspection to establish baseline condition.
Failures caused by neglected servicing, incorrect fluids, or not following the manufacturer's maintenance schedule. Keeping service records is essential.
Failures related to non-standard modifications including engine chips, aftermarket turbo kits, suspension modifications and non-approved accessories.
Damage from accidents, flooding, overheating due to continued driving, racing or off-road use. These fall under car insurance, not MBI.
Oil changes, filter replacements, spark plugs, fluid top-ups and scheduled maintenance items. MBI covers breakdowns, not regular upkeep.
Paint, panels, trim, upholstery, glass and body rust. MBI covers mechanical and electrical components only.
Some basic MBI plans exclude consequential damage - for example, engine damage caused by a failed water pump. Comprehensive plans are more likely to include this.
Use the provider comparison above to find the right MBI cover for your vehicle. Compare multiple NZ providers on coverage, eligibility and cost.