Mechanical Breakdown Insurance (MBI)

When you buy your new car, the last thing you want to think about is the fact that it might break down.

The reality is that as technology advances and vehicles become more complex, there are more electrical and mechanical components that can fail. And as your car gets older, the breakdown risk also increases.

That’s why a Mechanical Breakdown Insurance (MBI) policy can really make a difference. MBI covers you, potentially saving you hundreds – if not thousands – of dollars, and reducing the associated stress.

MBI example: Tim gets stuck in Tauranga

Tim uses Fenda to buy a Honda Civic that was first registered in 2004. It has 210,000 km on the clock and he wants Standard Cover Mechanical Breakdown Insurance for 36 months because he travels a lot. This policy costs $1,199. The cost is added to his car loan repayments at the same interest rate as his loan.

Tim drives from Wellington to Tauranga for a wedding one weekend. Unfortunately, his car won’t start to get him back home Sunday. He calls the number in the Provident policy document and they organise for his car to be towed. He has to stay in Tauranga for two nights and can get reimbursed for his accommodation up to $500 (subject to his claim being accepted). Once his $100 excess is deducted, the cost to fix the electronic control unit (ECU) is covered and he heads home on Tuesday.

Example only. See details of what Mechanical Breakdown Insurance covers you for in the policy document.

The boxes below show the details and pricing of Provident’s MBI policy. If you decide to purchase this policy, you do so with the understanding that you have read and understood the policy that you are buying. Please review all the details and policy conditions in the MBI policy document.

POLICY COVERAGE

Mechanical Breakdown Insurance (MBI): Coverage in the event of an unforeseen mechanical or electrical breakdown.

Qualifying vehicles

STANDARD
Maximum Age Limit: 16 years
Maximum Kilometers: 225,000

TURBO / DIESEL
Maximum Age Limit: 16 years
Maximum Kilometers: 225,000

EURO
Maximum Age Limit: 16 years
Maximum Kilometers: 225,000

Claim limit

Claim limits are based upon the age and mileage of the vehicle at time of policy purchase and not at the time of claim.

STANDARD
Up to 125,000 km: $7,000
Up to 175,000 km: $4,000
Up to 225,000 km: $3,000

TURBO / DIESEL
Up to 125,000 km: $7,000
Up to 175,000 km:
$4,000
Up to 225,000 km:
$3,000

EURO
Up to 125,000 km: $7,000
Up to 175,000 km:
$4,000
Up to 225,000 km:
$3,000

Premium pricing

STANDARD
12 month cover: $799
24 month cover: $899
36 month cover: $1199

TURBO / DIESEL
12 month cover: $999
24 month cover: $1219
36 month cover: $1549

EURO
12 month cover: $1019
24 month cover: $1299
36 month cover: $1599

Excess

STANDARD
Excess: $100

TURBO / DIESEL
Excess: $250

EURO
Excess: $350

KEY INFORMATION

Mechanical Breakdown Insurance (MBI)

Special Allowances

Up to $500 per claim for any one of the following options: rental car hire, or accommodation or vehicle reparation in the event that your vehicle breaks down more than 120 km from your home and the time taken to repair your vehicle exceeds 24 hours. These allowances are detailed on page 2 of the MBI policy document.

As stated on pages 4-5 of the policy document, this insurance does not cover:

  • If the vehicle has been purchased privately, repairs or replacement of components where failure occurs within 60 days of the start date of the Registration Certificate. This exclusion does not apply if a full pre-purchase inspection report is provided to us and it meets the following requirements. The report must have:
  • Been completed prior to the vehicle purchase; and
  • Been completed no more than 21 days prior to the policy start date; and
  • Included an engine compression check.
  • No cover will be provided on any pre-existing faults or defects identified in the report or any consequential damage caused by those pre-existing faults or defects, unless those pre-existing faults or defects were correctly repaired or replaced prior to the policy start date. Receipts must be provided if requested detailing the repairer, work completed and any associated costs.
  • If the vehicle has been modified from the manufacturer’s original specification.
  • If the vehicle will be used as a courier, taxi/carrying fare paying passengers, rental, delivery, driver/tuition vehicle.
  • If the vehicle is excluded as per our list of excluded vehicles. These can be viewed on page 3 of the MBI policy document.
  • If the vehicle has 8 cylinders or more.

Exclusions

A list of Excluded Vehicles, vehicle use and components are stated on page 3, General Exclusions are stated on page 4-5, and General Conditions are stated on pages 10-12 of the MBI policy document.

Roadside Assistance

This policy entitles you to NZRA Roadside Assistance 7 days a week / 24 hours per day. The benefits of this cover are shown on pages 6-8 of the MBI policy document.

Vehicle servicing

A condition of this policy is that your vehicle is serviced in accordance with the Servicing Requirements stated on page 9 of the MBI policy document.

Claims procedure

In the event of a claim, please follow the Claims Process stated on page 14 of the MBI policy document.

Cooling off period

You can cancel this Policy within 5 working days after the date on which you purchased the Policy. Please review full details about the cooling off period on page 1 of the MBI policy document.

Fenda insurance products

Mechanical Breakdown Insurance (MBI)
Covers you in the event of a mechanical or electrical vehicle failure.

Credit Contract Indemnity Insurance (CCI)
Covers your loan repayments if you are unable to due to unforeseen circumstances.

Guaranteed Asset Protection Insurance (GAP)
Covers the shortfall between what you owe a finance company and what is paid out by your insurer.

Comprehensive Motor Vehicle Insurance (MVI)
Covers your vehicle for accident, fire and theft.