Still little known, mechanical breakdown cover is slowly making its way onto the insurance market. Although only 6% of used vehicles are covered (according to L'Argus de l'assurance), this protection against mechanical, electrical and electronic breakdowns is beginning to make its way into the minds of motorists. And with good reason: in a context of exploding repair costs after a vehicle breakdown, taking out a dedicated insurance policy is becoming more cost-effective every year... Especially as companies are offering simpler, more transparent and more financially attractive packages, such as the Meka mechanical breakdown cover offered by Parachut.
Motor vehicle breakdown: repair costs soar
The higher the cost of a claim, the more attractive the protection offered by an insurance policy. The mechanical breakdown sector is no exception to this inexorable logic: against a backdrop of exponentially rising repair costs, mechanical breakdown cover becomes "an offer you can't refuse".
Indeed, while the total number of breakdowns remains stable, the cost of repairs is skyrocketing. In 2021, in Europe, the average cost (excluding VAT) of repairing a car after a breakdown will be €600, an increase of €21 compared to 2020 (CarGarantie study reported by L'Argus). In France, in 2023, for vehicles between 7 and 9 years old, the average estimate will be around €1,250, including all additional costs such as diagnostics.
Considering that a breakdown can occur at any time in the engine, fuel system, electronics, multimedia equipment or transmission... and potentially several times a year. Ultimately, this adds up to a hefty bill for drivers.
You don't have to look too far to find an explanation for this rise in vehicle breakdown costs: the increase in workshop fees due to the rise in raw material prices and transport costs is a sufficient explanation. And it's a cause for concern, because there's no reason to expect the cost of breakdowns to go down any time soon.
Mechanical breakdown cover: a (welcome) extension of the manufacturer's warranty
This upward trend is prompting insurance companies to offer products dedicated to this particular case of vehicle breakdown, such as Parachut with Meka.
Mechanical breakdown cover is an extension of the manufacturer's warranty, which is compulsory for all new vehicles (including those with electric motors) for a minimum period of two years. It allows the insurer to cover the cost of repairing and restoring the vehicle after a breakdown.
This cover is not compulsory and is not automatically included in the vast majority of insurance policies. It is therefore taken out on the initiative of the motorist who wishes to protect himself against the risk of his vehicle breaking down... and to avoid breaking his piggy bank in order to benefit from a repair.
The cost of the Meka breakdown cover more than covers the cost of repairs
If we take a closer look at the mechanical breakdown cover market, one thing becomes clear: the landscape is dominated by simple, accessible offers that aim above all to provide motorists with comprehensive protection.
For example, Parachut's Meka insurance package offers comprehensive coverage for vehicles with less than 10 horsepower from €29.99 per month. It covers mechanical, electronic, electrical and hydraulic breakdowns, as well as problems with multimedia devices and batteries in electric vehicles. It covers repairs up to €5,000 for a used car and €15,000 for a new car. Even tires are included in the policy, whereas they are usually excluded from coverage (up to €150).
If you compare the Meka insurance premium with the average cost of a repair and all the additional costs (close to €600), and take into account the likelihood of a vehicle breakdown several times a year, you'll understand how cost-effective such coverage can be.
And that's without considering another dimension: peace of mind. Because a breakdown is never just a breakdown: it's also a complex situation from which you have to extricate yourself, at the cost of a good dose of stress and additional expenses - towing the vehicle to the nearest garage, getting home after the accident, having another car at your disposal for the duration of the repairs. All these situations are covered by Meka's 0 km mobility assistance service, which guarantees the driver's peace of mind. And peace of mind is priceless!