Your car can be running perfectly on Monday and stranded on the side of the road by Friday. That is the uncomfortable reality of vehicle ownership in South Africa, where repair costs for major components have climbed sharply in recent years. A seized engine can cost anywhere from R30,000 to R80,000 to repair or replace. A gearbox rebuild rarely comes in under R20,000. When something goes wrong inside the vehicle rather than outside of it, most drivers discover too late that their standard car insurance does not cover it.
Mechanical Breakdown Insurance (MBI) is a monthly insurance policy that pays for the repair or replacement of a vehicle’s key mechanical and electrical components when they fail unexpectedly due to a fault, not an accident. It is not a replacement for comprehensive car insurance. It is the cover that fills the gap left by your car insurance.
This guide explains what MBI covers, what it excludes, how it compares to regular car insurance and a manufacturer’s warranty, and what to look for when choosing a policy in South Africa.
How does Mechanical Breakdown Insurance work?
When a mechanical or electrical fault brings your vehicle to a stop, MBI steps in to cover the cost of repairs. The process works like this:
| 1 |
Your vehicle breaks down Due to an unexpected mechanical or electrical fault, unrelated to a collision or accident. |
| 2 |
You contact your insurer before authorising any repairs With Bloom, this means calling MotoTech on +27 (0) 10 020-2566 during office hours. No claim can be processed for work already done without prior authorisation. |
| 3 |
The insurer assesses the claim If approved, repairs are authorised at an approved workshop. |
| 4 |
Repairs are carried out By the authorised repairer. |
| 5 |
The insurer pays the workshop directly Up to the applicable per-component benefit limit. You pay no excess on approved claims. |
MBI is structured as a monthly premium, not a lump-sum payment. This keeps the cover accessible regardless of the vehicle’s age or condition at the time of purchase.
A 60-day waiting period applies from your cover start date, which means three full premium payments must be made before any claim will be accepted. This is standard practice across the South African MBI market. There is no cumulative limit on the total value of claims you can make across the life of your policy. Only the individual per-component benefit limits apply, and you can claim multiple times.
What does Mechanical Breakdown Insurance cover?
MBI covers the sudden, unexpected failure of a vehicle’s mechanical and electrical components. The specific components and benefit limits depend on the option you choose. Bloom’s MBI covers 22 component categories across all four options.
Core mechanical components
The engine is the component MBI was designed around. It is the most commonly repaired major component in any vehicle, and repair costs can be severe. Bloom covers engine failure up to R50,000 on the Kyalami Premium option and up to R20,000 on the Killarney Essential option, with the Zwartkops Enhanced option and the Phakisa Reliable option at R40,000 and R30,000 respectively.
Beyond the engine, the cover extends to:
| Gearbox: R40,000 down to R17,500 depending on option |
| Differential and Front Wheel Drive Unit: R35,000 down to R15,000 |
| Transfer Case: R35,000 down to R15,000 |
| Clutch and Flywheel: R9,000 down to R4,000 |
| Drive Shafts and Propulsion System: R9,000 down to R4,000 |
| Forced Induction System (turbocharger): R10,000 down to R5,000 |
Electrical and electronic systems
Modern vehicles rely heavily on electronics, and failures in these systems can be just as disruptive as mechanical faults. Bloom covers:
| Electrical Components: R9,000 down to R4,000 |
| Electronic Ignition: R9,000 down to R4,000 |
| Management System: R10,000 down to R5,000 |
| Sensors and Sender Units: R9,000 down to R4,000 |
| Alarms and Immobilisers: R4,000 down to R2,000 |
| Audiovisual, Communication and Navigation Systems: R4,000 down to R2,000 |
| Central Locking and Transponder Keys: R4,000 down to R2,000 |
Comfort, safety and chassis systems
| Cooling System: R9,000 down to R4,000 |
| Air Conditioner: R9,000 down to R4,000 |
| Braking System: R9,000 down to R4,000 |
| Steering System: R9,000 down to R4,000 |
| Suspension: R9,000 down to R4,000 |
| Wheel Bearings: R9,000 down to R4,000 |
| Pulleys: R9,000 down to R4,000 |
Extensions of cover
All four Bloom options include a set of extensions that go beyond the component repair itself. These only apply if your primary claim has been approved, but they can make a significant practical difference when a breakdown happens at the wrong time or far from home.
You are permitted to claim for more than one extension at a time, provided the primary claim is approved.
What Mechanical Breakdown Insurance does NOT cover
Being clear about exclusions is part of making a good decision. MBI is designed for sudden, unexpected failures. It is not designed to cover costs that arise from predictable wear, neglect, or routine servicing.
| Routine maintenanceOil changes, filter replacements, spark plugs and scheduled services are running costs, not insured events. |
| Gradual wear and tearBrake pads that wear down over time, tyres that lose tread, clutch wear from normal use and wiper blades are all excluded. MBI responds to failure, not gradual deterioration. |
| Damage caused by poor maintenanceIf a breakdown is directly caused by a lack of servicing, for example, an engine that seizes because oil changes were overdue, the claim is unlikely to be approved. |
| Intentional damageNo MBI policy covers deliberate harm to a vehicle. |
| Incorrect use of the vehicleUsing a standard passenger car in conditions it was not built for may affect claims related to resulting damage. |
| Breakdowns within the waiting periodBloom’s 60-day waiting period means any breakdown in the first two months of the policy is not covered. |
| Claims within 1,500km of a previous claimA breakdown that occurs within 1,500 kilometres of a previously reported claim may not be covered. Full details are in the policy terms and conditions. |
If you are uncertain about a specific exclusion, Bloom’s team is available on +27 (0) 87 688-2500 or at customer.services@bloom.insure.
MBI vs regular car insurance: what is the difference?
This is the question most people have when they first hear about MBI, and the short answer is: they cover completely different risks.
If your gearbox fails while you are driving and there is no collision involved, a standard car insurance claim will be declined. The insurer will rightly point out that mechanical failure is not what your car insurance covers. This is the exact scenario for which MBI exists.
The two products work well together. Bloom’s MBI even includes an Insurance Excess Payment extension of up to R1,500, which can contribute to the excess on a separate car insurance claim if both products are in play at the same time.
MBI vs a manufacturer’s warranty: when does MBI take over?
Most new vehicles sold in South Africa come with a manufacturer’s warranty covering mechanical defects for a set period, typically three years or up to a specific kilometre limit, whichever comes first. Toyota, for example, offers a 3-year/100,000km warranty on new vehicles. Once that period ends, any mechanical failure is the owner’s sole responsibility.
This is the moment most drivers start thinking about MBI.
The key difference between a manufacturer’s warranty and an MBI policy is in who can access it. Manufacturer warranties are tied to the vehicle’s age and mileage. Once you are outside the covered period, you are no longer covered. Bloom’s MBI has no age or mileage restrictions. Whether your car is two years old or twelve, whether it has 30,000km on the clock or 200,000km, you can still take out cover.
This matters particularly for South Africans buying used or older vehicles, where a manufacturer warranty has long since expired. MBI is often the only structured protection available for the powertrain and electrical systems on these vehicles.
How to choose the right MBI policy in South Africa
Not all MBI policies are the same, and it is worth understanding what separates a strong policy from a basic one before you commit.
What to compare
| Component categories coveredSome policies cover 8 to 10 components. Bloom covers 22 across all options, for both vehicles and motorcycles. |
| Per-component benefit limitsA policy with a R5,000 engine limit will leave you significantly short of the cost of a real engine repair. The benefit limit is the ceiling the insurer will pay. |
| Excess payableMany MBI policies charge an excess when you claim. Bloom charges no excess on approved claims, which means your full benefit limit is available to you. |
| Cumulative claims limitSome policies cap the total value of claims over a year or the policy’s life. Bloom has no cumulative limit. |
| Extensions of coverTowing, mobility, accommodation and instalment protection matter when a breakdown happens at the wrong time. Check whether these are included or cost extra. |
| Age and mileage restrictionsIf a policy restricts cover to vehicles under a certain age or kilometre reading, it is not a practical option for anyone driving an older car. |
Bloom’s four options
All four Bloom options cover 22 component categories, include the full set of extensions, charge no excess on approved claims, carry no vehicle restrictions and carry no cumulative claims limit. The difference between them is the per-component benefit level.
Frequently asked questions
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Keep your vehicle protected Mechanical failure does not give you a warning, and it does not wait for a convenient moment. Bloom’s MBI covers vehicles and motorcycles of any age or mileage, across 22 component categories, with no excess on approved claims and no cumulative claims limit. |
To speak with our team directly, call +27 (0) 87 688-2500 or email customer.services@bloom.insure. Office hours are Monday to Thursday 08:00 to 16:30 and Friday 08:00 to 16:00.
Bloom Financial Services (Pty) Ltd is an authorised financial services provider (FSP 50140). Underwritten by New National Assurance Company Limited. Terms and conditions apply. This article is intended as a general guide and does not constitute financial advice. Please refer to the full policy terms and conditions for complete details of cover, exclusions and benefit limits.
