On average, car repair insurance, more accurately known as mechanical breakdown insurance (MBI) or an extended auto warranty, costs between $1,000 and $3,000 for a multi-year contract. However, the final price is highly personalized and depends on your vehicle's age, mileage, your chosen deductible, and the level of coverage. For a more precise idea, you can expect to pay $40 to $150 per month if you opt for a payment plan.
The single biggest factor influencing cost is your vehicle. New cars with factory warranties are cheaper to cover than older, high-mileage cars, which are more prone to expensive repairs. For example, covering a 2023 Toyota Camry will cost significantly less than a 2018 BMW X5 with 80,000 miles.
The type of coverage you select is another major price driver. A basic powertrain plan (covering engine and transmission) is the most affordable, while a bumper-to-bumper plan (also called exclusionary coverage) that includes complex electronics and high-tech features is the most expensive. Here’s a quick breakdown of average annual costs for different coverage levels on a 5-year-old SUV:
| Coverage Type | What It Typically Covers | Estimated Annual Cost |
|---|
| Powertrain | Engine, transmission, drive axles | $400 - $700 |
| Stated Component | Powertrain plus a listed set of parts (e.g., A/C, brakes) | $500 - $900 |
| Exclusionary | Covers everything except a short list of excluded items | $700 - $1,200 |
Finally, your deductible—the amount you pay per repair visit—directly impacts your premium. Choosing a higher deductible, like $200 instead of $100, will lower your overall cost. The best approach is to get quotes from several reputable providers, compare the specific coverage terms (not just the price), and read the contract carefully to understand what is and isn’t covered before making a decision.
