What type of insurance covers losses due to the breakdown of motor vehicles?

• A. Mechanical Breakdown Insurance
• B. Comprehensive insurance
• C. Collision insurance
• D. Property damage insurance

Answer: (A)

Mechanical Breakdown Insurance specifically addresses the costs associated with the failure of essential components of motor vehicles, not covered under standard auto insurance policies. This type of insurance is designed to cover repairs for mechanical failures and breakdowns, which can occur as a result of wear and tear or malfunction of parts over time. It can help alleviate the burden of high repair costs that drivers may face due to mechanical issues that are not related to accidents or external events.

Comprehensive insurance, on the other hand, is primarily focused on covering damages to a vehicle caused by non-collision incidents such as theft, vandalism, or natural disasters. Collision insurance protects against damages resulting directly from accidents, specifically where the vehicle collides with another object or vehicle. Property damage insurance generally pertains to liability coverage for damage caused by the policyholder to someone else's property, rather than covering the policyholder’s own vehicle’s mechanical failures.

This specificity in coverage makes Mechanical Breakdown Insurance the appropriate choice when discussing insurance that covers losses due to the breakdown of motor vehicles.