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What Can DCU Save You?

Mechanical Breakdown Insurance

Avoid out-of-pocket costs for your vehicle repairs



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Mechanical Breakdown Insurance

Mechanical Breakdown Insurance

  • Coverage available on both new and used vehicles
  • Competitive pricing
  • Plans include 24-hour emergency roadside service and rental car allowance
  • Three plans available – all with nationwide protection
  • No deductible on covered parts and labor.
  • 30 day "Free Look"

"Always Happy"

Open quote We have been members for years and have always have had great services! Close quote

— PFS, Centerville, MA

What is Mechanical Breakdown Insurance?

If you will be keeping your car for a while, Mechanical Breakdown Insurance is a good deal. Sold through the credit union, it is fairly priced for new and used car coverage. This cost is about half what a dealer would charge you for a typical extended warranty. And Mechanical Breakdown Insurance usually lets you go to your repair shop, where dealer warranties limit work to specific dealerships.

DCU is making MBI available to our members, here are some of the features:

  • You can buy coverage on both new and used vehicles.
  • Competitive pricing compared to plans offered by many auto dealers.
  • All MBI plans also include 24-hour emergency roadside service and rental car allowance.
  • 3 plans to choose from – Easy Street, Main Street, and First Street.
  • Nationwide protection.
  • Complete line of coverage designed to keep your vehicle on the road.
  • No deductible on covered parts and labor.
  • 30 day "Free Look" – cancel for any reason within the first 30 days and get a full refund.

Extended warranty versus Mechanical Breakdown Insurance

A warranty is the first layer of mechanical breakdown coverage on any new vehicle. The coverage is provided at no cost to the buyer by the manufacturer. A warranty has a specific term expressed in months or miles and usually protects the entire vehicle against defect in workmanship and material. This is known as "bumper to bumper" protection.

An extended warranty – also known as a service contract – can cost you in the thousands and most consumers collect very little of that. It extends the mechanical breakdown protection beyond the basic warranty term, and applies to specific assemblies contained within the vehicle. A good example is the powertrain warranty. In this case, only the powertrain (engine, drive axle, transmission) is protected for an additional length of time or miles such as 6 years or 60,000 miles. These cost extra and are sold separately.

Mechanical Breakdown Insurance is a true insurance product. Like personal auto or homeowners insurance, the MBI creates a direct relationship between the vehicle owner and the insurance company. MBI coverages and premiums are regulated by state insurance departments.

Another warranty is known as a vehicle service contract and is a written agreement between the vehicle buyer and the dealership. This contract is often mistakenly called an extended warranty. The dealer becomes responsible for providing mechanical breakdown coverage or reimbursement to the vehicle owner. Most service contracts are restrictive and conditional. The dealer is allowed to set the actual price of the contract at whatever level he chooses.

Coverage Plans

This provides basic information on each plan.

Best – Easy Street

Offers factory-type coverage

  • Components Covered – Because so many components are covered, it is not possible to list everything. Instead, this shows a small number of parts that are not covered: oil, brake shoes, belts, hoses, tires, tune-up items, filters, a/c coolants, exhaust and emission parts, sound reproduction, cosmetic and body parts, glass and paint.

Better – Main Street

Offers all items included in the First Street plan plus the following:

  • Air Conditioning – Compressor, evaporator, accumulator and condenser, if factory installed.
  • Steering – Power steering pump, steering gear housing and its internal parts and rack and pinion assembly.
  • Brakes – Master cylinder, ABS master cylinder, vacuum booster, wheel cylinders, disc brake calipers, hydraulic lines, and fittings.
  • Cooling – Radiator, fan clutch, water pump, cooling fan motor.
  • Engine – Compressor, evaporator, accumulator and condenser, if factory installed.
  • Fuel Delivery – Fuel pump, fuel tank, fuel injectors, metal fuel lines, fuel sending unit.
  • Front Suspension – Upper/lower control arms, upper/lower ball joints, steering knuckle, wheel bearings, control arm shaft, and bushings. Coverage available only for vehicles under 85,000 miles at contract purchase.
  • Electrical – Battery, voltage regulator, alternator, wiper motors and module, window motors, cooling fan motor, electric fuel pump, ignition module and coils, engine operation computer, distributor, starter, starter solenoid, seat motors, door lock actuators, manually operated switches for above-listed parts.
  • Automatic Transmission – Chain, drum assembly, solenoids, bushings, accumulator, clutches, bands, servos, parking pawl, speedometer gear, transmission cooler, pistons.

Good – First Street

Coverage on your car's drive train.

  • Engine – Crankshaft and bearings, oil pump, pistons, rings, connecting rods and bearings, timing gears, chain/belt, camshaft, bearings, push rods, rocker arms/shaft, hydraulic lifters, intake and exhaust valves, and springs. Engine blocks covered if mechanical failure was caused by above-listed parts.
  • Standard Transmission – Internal transmission parts consisting of gears, input and output shafts, bearings, overdrive housing. Transmission case if malfunction was caused by the above listed parts.
  • Automatic Transmission – Internal transmission parts consisting of gears, input and output shafts, bearings, front pump, planetary assembly, sprags, governor assembly, valve body, torque converter, transmission case.
  • Drive Axle Assembly

    • 2-Wheel Drive – Drive shaft, ring/pinion gears, pinion bearings, side carrier bearings, carrier assembly, thrust washers, axle, axle bearings, universal joints, CV joints (except if boot was damaged or missing), drive axle housing.
    • 4-wheel / All-Wheel Drive – Drive shaft, differential and CV joints, transfer case parts listed on contract (except if boot was damaged or missing).
  • Fuel Delivery – Fuel pump, fuel tank, fuel injectors, metal fuel lines, fuel sending unit.
  • Cooling – Water Pump – Limited to 50% parts and labor.
  • Electrical – Alternator, Starter and Voltage Regulator – Limited to 50% parts and labor.


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Does DCU Easy street mechanical breakdown coverage covers repairs both in US and Canada?

Asked by: mindtree
Mechanical Breakdown Insurance provides coverage only in the United States.
Answered by: DCU Staff
Date published: 2013-10-23

Does the MBI cover car battery replacement cost?

My car battery needs a replacement. Is it covered under the MBI east street plan?
Asked by: abchav
MBI Easy Street covers roadside assistance which includes battery jumpstart, but not battery replacement. For full coverage details please call the coverage provider directly at 800/808-0828.
Answered by: DCU Staff
Date published: 2015-03-28

Can the insurance company refuse to pay for a covered repair because of the age of my car?

I own a 2002 Infinity with 38000 miles. I've always taken my car in to the dealer for routine service and maintenance.They always seem to find something wrong as well as the maintenance and recommend the item be repaired or replaced. Believing what the service writer says, I would agree because the repairs were covered by my MBI. Now I need a major engine repair but the insurance co. says NO, because all the prior repairs has cost them more than the car is worth. I think the dealer has been selling "wolf tickets", creating un-necessary repairs since the insurance company would pay. I still have three years to go before the policy expires.
Asked by: Playa
Please refer to your Service Agreement for complete details or contact the MBI service provider directly at 800-808-0828.
Answered by: DCU Staff
Date published: 2014-02-15

Is labor covered with MBI?

In many cases, labor costs adds to the bulk of the cost of a service. Is labor covered in MBI?
Asked by: Veera
All agreements provide for the reasonable and customary payment of labor.
Answered by: DCU Staff
Date published: 2016-02-11

Vehicle eligibility

I have a 2009 Cadillac XLR with 31k miles on it. What level of MBI would it qualify for if i refinanced the car with dcu? My other credit union tells me 8 model years for easy street plan.
Asked by: GregG
Please get in touch with our Loan Team at 508-263-6700 option 3, weekdays 8am-9pm ET or Saturdays 9am-3pm, for further help in determining which program you could use for the vehicle in question.
Answered by: DCU Staff
Date published: 2017-05-06
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How Get Mechanical Breakdown Insurance

Please consult with one of our loan representatives to discuss the Mechanical Breakdown Insurance program in more detail. Or, call us at 508.263.6700 or 800.328.8797.