Co-authored the book “Future Millionaires’ Guidebook”
13 years writing personal finance content
A former chief copy editor at Bankrate and past managing editor at Macmillan, Kim specializes in writing easy-to-understand, actionable personal finance content.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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Extended car warranties can help pay for vehicle repairs outside the scope of a standard factory car warranty.[1] But if you live in California, you’ll be able to buy this type of policy only from a licensed car dealership.[2]
A mechanical breakdown insurance (MBI) policy can provide similar coverage. This type of policy pays to repair the major systems in your car if it breaks down unexpectedly.
If you’re thinking about getting MBI, here are our top picks for the best companies that offer mechanical breakdown coverage in California.
Quick Facts
Buying an MBI policy is a good idea if you’re planning to keep your vehicle for a long time, you’re worried about paying for expensive car repairs, or your vehicle isn’t reliable.
Mechanical breakdown insurance often costs less than an extended car warranty.
You can buy a stand-alone MBI policy or add it to your auto insurance in some cases.
What is an extended car warranty?
An extended car warranty, also known as a third-party vehicle service contract (VSC), is optional coverage that pays for certain car repairs after your manufacturer’s warranty expires. It covers certain mechanical and electrical components and excludes routine maintenance, wear and tear, pre-existing conditions, and accidents. Vehicle service contracts can be expensive, and the coverage varies by company.
These contracts aren’t the same as car insurance, which most states require and covers accidents, liability, theft, damage from natural disasters, and more. Vehicle service contracts also differ from manufacturer extended warranties, which car makers automatically include when you purchase a new car and some used vehicles.
These factory warranties typically last for a certain number of years or miles and cover certain issues due to a defect or failure.[3]
Get Breakdown Coverage You Can Count On
Find a vehicle service contract that works for you
Best extended car warranty companies in California
Only car dealerships can legally sell extended car warranties in California. If you don’t want to get this type of coverage at a dealership, you can buy mechanical breakdown insurance from a third-party provider. MBI policies pay to repair your vehicle’s major systems, like the transmission and engine, after an unexpected breakdown.
Here are the best mechanical breakdown insurers in California based on coverage options, cost, and customer reviews.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
622
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.7 /10
How drivers feel about Progressive
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
How drivers feel about Progressive
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
Reviews (6,999)
Sheila
Verified Review
Train Your Online Sales & Customer Service Reps Right
Reviewed in Georgia on August 2025
First, the female representative I secured online coverage with failed to send me a temporary password as she promised. I also asked for coverage for uninsured and underinsured motorists, a $250 deductible on comprehensive, and a $1000 deductible on collision. Additionally, I wanted towing, labor, and car rental for at least $40 to $50 per day. I contacted a male customer service representative, and he also failed to send me a temporary password so I could start online tracking of my new policy effective July 11, 2025. I finally got a customer service rep today, named Carmella, who graciously sent me the temporary password and helped me set up an online account. I had to inform her that the documentation they wanted did not arrive in the mail until today, August 11, 2025, and there is no way I can send copies by the August 16th deadline because it takes up to two weeks to get most mail in Albany, GA (it has to go out of state to Jacksonville, FL before they send it here). I advised her that I would send the following documentation: a copy of the closing papers on the house I currently own (which shows there is no mortgage), proof of home insurance from State Farm, and proof of the 2025 taxes from Dougherty County, GA via email after I take photos. I promised her that I would do so prior to the August 16, 2025 deadline so I do not lose any discounts currently included on my auto policy.
Christine
Verified Review
Run from Progressive!
Reviewed in Georgia on August 2025
Horrible, last week the representative told me my insurance would be $69, and the renewal came four days later at $94. I have a 2003 Lincoln that is only liability. We drive less than 11 miles a day!
Christopher
Verified Review
My policy went up nearly $100 after hitting a deer
Reviewed in Georgia on August 2025
I'm not happy with my policy going up about $75 to $90 because I hit a deer in a car that belongs to my mother, which she has since sold. The insurance was in her name and not even through my Progressive policy. Because the deer ran out in front of me and there was nothing I could do to avoid hitting it, it raised my policy almost $100. Extremely unhappy with this situation is an understatement.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
622
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.97
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company
Progressive offers a vehicle protection plan that you can add to your traditional auto policy. You can secure a policy for as low as $12 per month. It covers engine and transmission issues, electronic systems, issues with key fobs, and more. It’s available for cars 2 years old or newer and can last until the car is 8 years old.
If you want a stand-alone option, Progressive also partners with Good Sam to offer mechanical breakdown insurance. This MBI policy comes with travel benefits, which reimburse you for meals, hotels, and rental car expenses.
Pros
Coverage until the car is 8 years old
Covers minor dents and stolen or damaged keys
Zero deductible for minor dents and key replacements
Cons
Progressive has low auto claims satisfaction ratings from J.D. Power
Low Trustpilot rating
Good Sam policies not available for bundling with Progressive policies
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.2 /10
3.9
A solid optionBased on 12,084 verified guest reviews and ratings
How drivers feel about GEICO
Customers appreciate the reliability and customer service but find the rates to be high and increase frequently, even without claims or accidents. The app has improved, but some find the claims process lacking.
AI-generated from the text of verified reviews collected by Insurify
Best For
Teen drivers
Cheap rates
Accident forgiveness
How drivers feel about GEICO
Customers appreciate the reliability and customer service but find the rates to be high and increase frequently, even without claims or accidents. The app has improved, but some find the claims process lacking.
AI-generated from the text of verified reviews collected by Insurify
Best For
Teen drivers
Cheap rates
Accident forgiveness
Reviews (6,458)
Steven
Verified Review
I have no loyalty to insurance companies.
Reviewed in Missouri on August 2025
They stayed pretty stable price-wise, but I'm dropping them for a much better deal.
Keith
Verified Review
Crappie
Reviewed in New Jersey on August 2025
I'm unhappy that my rate went from $1,138 to $1,800 in just 6 months.
Mark
Verified Review
Needed help on the road and they were fast to help!
Reviewed in South Carolina on August 2025
Their app is great! They are quick to respond when needed.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
637
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.59
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
With GEICO, you can add mechanical breakdown insurance to your auto policy as long as your car is newer than 15 months old and has less than 15,000 miles. GEICO’s MBI plans cover all vehicle parts and systems with a few policy exceptions. After you’ve purchased it, you can renew MBI coverage for up to seven years or 100,000 miles.
Pros
Affordable coverage
Covers all parts and systems
AM Best financial strength rating of A++ (Superior)
Cons
Sets strict requirements for car’s age, mileage, and ownership
Offers just one deductible option
Lower customer satisfaction ratings from J.D. Power
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.5 /10
3.7
A solid optionBased on 554 verified guest reviews and ratings
How drivers feel about Mercury
Drivers appreciate the attentive customer service and claim handling but dislike the consistent rate increases and lack of transparency in pricing. Some also found the company to be lacking in empathy and flexibility.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Rideshare drivers
Numerous discounts
How drivers feel about Mercury
Drivers appreciate the attentive customer service and claim handling but dislike the consistent rate increases and lack of transparency in pricing. Some also found the company to be lacking in empathy and flexibility.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Rideshare drivers
Numerous discounts
Reviews (292)
Lawrence
Verified Review
Beware Homeowners
Reviewed in Georgia on June 2025
Sad company charging a 5% deductible for wind and hail damage, especially if the home is older than 5 years.
Scherrie
Verified Review
Rates
Reviewed in California on May 2025
Increased rates every half year.
Diana
Verified Review
Outrageous Premium Escalation
Reviewed in Florida on May 2025
To get my business, they promised a rate of $104 per month. Oops! Somebody made a calculation error; it was actually $127 per month. This amount has escalated every three months for the last 29 months. The June 2025 renewal rate is $256 per month. All this even though I have retired and for the last 18 months drive less than 25 miles per week. Add this to the fact that I have no tickets, no DUI, and filed no claims with any insurance company in more than 10 years.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
596
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.95
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A
Why we picked this company
Some providers cover only new vehicles, but Mercury Insurance offers mechanical breakdown insurance for new and pre-owned cars. Mercury’s MBI policy even comes with several benefits at no extra charge, including 24-hour roadside assistance, trip interruption coverage, and transferable coverage.
Pros
Offers coverage for new and pre-owned vehicles
Includes roadside assistance and trip interruption coverage
Allows you to choose your repair facility
Cons
Low claims satisfaction ratings from J.D. Power
Doesn’t cover damage from wear and tear
Higher-than-average score on the National Association of Insurance Commissioners (NAIC) Complaint Index
Our editorial team analyzed companies that sell mechanical breakdown insurance in California to assess which offer the best prices, coverage options, customer service, and savings to drivers. We prioritized competitive costs, customer service reviews, discounts, and specialty or supplemental coverages.
Why California drivers should consider an extended warranty
California’s long commutes, steep roads, and summer heat can really take a toll on your vehicle. Add in some of the highest labor and repair costs in the country, and it’s easy to see why mechanical breakdown insurance can be a smart move.
MBI helps cover major repairs when your car’s warranty expires and can prevent surprise bills. It’s especially useful if you drive often or plan to keep your car for years. On the flip side, if your vehicle is new, leased, or still under a manufacturer’s warranty, you might not need MBI just yet.
What an extended warranty covers
Extended vehicle warranties vary with each provider and plan, but they usually cover major systems. Some of these policies extend the manufacturer’s bumper-to-bumper warranty or offer add-on services like roadside assistance and tire coverage.
In California, you can buy extended warranties only from licensed car dealerships. If you want to work with a different type of company, you may purchase mechanical breakdown insurance. MBI policies usually cover a vehicle’s:
Air conditioning
Brakes
Drivetrain
Electrical systems
Engine
Exhaust
Fuel system
Starters
Steering
Suspension
Extended car warranty laws in California
California has some of the toughest rules in the country when it comes to extended car warranties. In this state, only licensed dealerships can sell traditional vehicle service contracts (VSCs), which are similar to extended warranties.
If you’re looking for this type of coverage outside of a dealership, you can buy mechanical breakdown insurance (MBI). Companies that sell MBI policies must be an insurance company or partner with one.
The California Department of Insurance reviews all MBI plans and policies to ensure coverage is solid, the companies are financially sound, and the terms are fair and easy to understand. It also sets rate limits for MBI policies. With VSCs, dealerships can charge whatever they want for a plan, but they’re often willing to negotiate.
If you buy a VSC plan from a dealership, you get a 30-day free look period, which lets you cancel for a full refund if you change your mind. After that period, you can still cancel and get a prorated refund.[2]
How much does an extended car warranty cost in California?
The cost of mechanical breakdown protection varies with each insurer, policy, and vehicle. Generally, drivers with older or high-mileage vehicles pay higher rates.
For example, you could take out an MBI policy with Endurance for a 2025 Ford F-150 truck with 2,500 miles. You could either pay $105 per month for 24 months or save a bit and pay the entire $2,282 up front. Coverage lasts six years, and the deductible would be $100.
Meanwhile, an MBI policy for the same vehicle would cost $8 per month when added to an existing GEICO car insurance policy. The deductible would be $250.
The terms of your policy also affect your costs. Choosing a higher deductible leads to lower premiums, and lower deductibles come with higher premiums. Additionally, the longer your coverage term is, the more you’ll pay over the lifetime of your policy.
Find a Vehicle Service Contract That Works for You
Customize a plan and get covered in 60 seconds
How to choose the right warranty plan in California
Here’s what to check when comparing mechanical breakdown insurance policies in California:
Compare waiting periods and claim processes
Some insurers make you wait longer before coverage kicks in or require you to jump through more hoops during the claims process. Look for a plan that balances speed with simplicity.
Review cancellation terms and refund eligibility
Find out about the cancellation process and whether you’ll get a partial refund if you change your mind.
Look at exclusions and fine print
Don’t just focus on what a policy covers. Take a close look at what an MBI policy doesn’t include. Coverages can vary by company.
Consider bundling with other coverages
If you already have roadside assistance or extended warranty coverage, bundling mechanical breakdown insurance could save you money or fill in coverage gaps.
Extended car warranties in California FAQs
Below is more information if you still have questions about extended car warranties in California.
What is the best extended car warranty company in California?
Progressive offers the best mechanical breakdown insurance in California. It has its own vehicle protection plan and partners with Good Sam to offer a stand-alone policy so you can choose which option works best for your car. GEICO and Mercury Insurance also offer good MBI policies in California.
Why is CarShield not available in California?
Since California allows only dealerships to sell extended car warranties, CarShield doesn’t have a license to sell them in California. The company also doesn’t offer mechanical breakdown insurance, so CarShield may refer you to a licensed insurer if you contact the company looking for this type of coverage.
Why are extended car warranties not available in California?
California has strict insurance and warranty regulations. You can buy an extended car warranty (also known as a VSC) in California only at a licensed car dealership. If you don’t want to work with a dealership or you want to compare options, you can purchase a similar product called mechanical breakdown insurance (MBI).
Is it worth paying for an extended warranty on a car?
It can be worthwhile to buy mechanical breakdown insurance if you can’t afford expensive car repairs, your manufacturer warranty has expired, your car has a lot of tech, or if your car is unreliable.
Ca.gov. "Guide to Automobile Service Contracts, Extended Warranties and Other Repair Agreements."
Consumer Financial Protection Bureau. "What are the differences between a manufacturer’s warranty and an extended vehicle warranty or service contract?."
Kim Porter
Kim Porter is a writer and editor who's been creating personal finance content since 2010. Before transitioning to full-time freelance writing in 2018, Kim was the chief copy editor at Bankrate, a managing editor at Macmillan, and co-author of the personal finance book "Future Millionaires' Guidebook." Her work has appeared in AARP's print magazine and on sites such as U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, and more. Kim loves to bake and exercise in her free time, and she plans to run a half marathon on each continent.
Kim has been a contributor at Insurify since October 2022.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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