Cover for the repair bills that arrive after the warranty ends.
Mechanical breakdown insurance pays for engine, gearbox and electrical failures that ordinary car insurance does not, and includes roadside assistance. Autoworld arranges cover through a New Zealand insurance partner and can quote it at your next service.
Why it exists
A modern engine, transmission or control unit can cost more to replace than a used car is worth, and most of those failures happen after the factory warranty has run out. Mechanical breakdown insurance, sometimes called engine breakdown insurance, covers that gap. It is not compulsory, but for an owner who relies on one car and does not want a surprise bill, it is worth understanding.
Autoworld does not underwrite insurance. We work with a New Zealand-owned, licensed insurer whose policies are accepted at our workshop and at approved workshops around the country, and we can arrange a quote while your car is in for a service.
What the cover does
- Pays for mechanical and electrical repairs that general car insurance does not touch, such as engine, gearbox, cooling and electronic control faults
- Covers both new and used vehicles, including most Japanese and European makes
- Includes 24-hour roadside assistance for jump starts, flat tyres, minor roadside repairs and recovery
- Contributes towards towing and a rental car while the vehicle is repaired
- Follows the vehicle, not the driver, so anyone who drives it is covered under the policy terms
Roadside assistance
Every policy includes roadside assistance available around the clock. The roadside team can handle minor repairs at the kerb, technical advice over the phone, battery jump starts, fitting a spare and recovery to a workshop if the car cannot be driven.
Keeping the policy valid
This is the part we explain carefully, because it is where claims get declined. The vehicle must be serviced within three months or five thousand kilometres of the policy starting, and then at least every twelve months or ten thousand kilometres. Each service we carry out is recorded against your vehicle so the history is there when you need it. Wear items, consumables and faults that existed before the start date are excluded, and there is a short stand-down before the first claim can be made.
How a claim works
If something fails, the car comes to us or to any approved workshop. We diagnose the fault, describe the symptoms and prepare an estimate on the insurer’s claim form. The insurer’s claims team assesses it and gives the workshop the go-ahead, keeping you informed along the way. When the repair is complete you pay the excess to the workshop and the insurer settles the balance under the policy terms. Where a courtesy car is not available, the policy may contribute to a rental.
Choosing a plan
Two plan levels are offered, with the cover limit per claim depending on the plan and how far the vehicle has travelled. A single owner-driver car on moderate mileage is usually well served by the standard plan. Multiple vehicles can be covered, with pricing considered individually, and premiums can be paid weekly, fortnightly, monthly or annually.
How to get cover
Ask about mechanical breakdown insurance at your next service, or call 022 3900 587. We confirm the vehicle is eligible, arrange a quote with our insurance partner and make sure you have the full policy documents to read before you commit. Terms and conditions apply.
Common questions
How is this different from my comprehensive car insurance?
Comprehensive insurance covers damage from outside the car: accidents, theft, vandalism and natural events. Mechanical breakdown insurance covers the parts inside it, such as the engine, transmission and electrical systems, when they fail through a fault rather than ordinary wear.
Do I have to keep servicing the car?
Yes, and this is the condition people most often trip over. The vehicle must be serviced within the first three months or five thousand kilometres of the policy starting, whichever comes first, and then at least every twelve months or ten thousand kilometres. Miss a service and the policy can be invalidated. We log every service we do so your record is ready if you claim.
Can I claim straight away?
There is a stand-down period of twenty-one days after the policy starts before claims can be made. Roadside assistance requests inside that window are considered case by case.
What is not covered?
General wear and tear and consumables such as tyres, wiper blades, brake pads and oil changes, and any fault that existed before the policy started. The policy wording lists the exclusions in full and we will go through it with you.
What if I change my mind?
The policy has a seven-day free-look period. Read the terms and conditions, and if you decide not to continue, tell the insurer in writing within seven days of receiving the documents. Cancelling a twelve-month contract after that attracts a cancellation fee set out in the policy.
Which cars are accepted?
Most vehicles registered in New Zealand from the early 2000s onward with moderate mileage are eligible, which covers the great majority of Japanese and European cars we see. If your car sits just outside the criteria, ask and the insurer will consider it individually.