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Mechanical Breakdown Protection

  • What is the difference between Mechanical Breakdown Protection and various warranties?
  • Mechanical Breakdown Protection through Holyoke Credit Union
  • Easy Street, Main Street, or First Street Coverage
  • How to obtain Mechanical Breakdown Protection

Mechanical Breakdown Protection – often referred to as MBP – is a wise choice for many of our members, but may not be for everyone. The information presented here can help you decide if Mechanical Breakdown Protection is right for you.

First, consider the fact that most major repairs occur after the manufacturer's warranty expires and, if you are like most Holyoke Credit Union members, you are keeping your cars longer, while repair costs continue to rise. In order to avoid out-of-pocket costs for these repairs, some sort of extended coverage is a necessity!

The big question is how long you anticipate owning your car. If the car you've just purchased is new, take a close look at its factory warranty before making a decision on more coverage. If you plan on keeping the car for a long time, or if you will be putting a lot of miles on your car after the factory warranty expires, Mechanical Breakdown Protection may be a good investment.

What is the difference between Mechanical Breakdown Protection and various warranties?

Mechanical Breakdown Protection is a true insurance product. Like personal auto or homeowners insurance, Mechanical Breakdown Protection creates a direct relationship between the vehicle owner and the insurance company. Mechanical Breakdown Protection coverages and premiums are regulated by state insurance departments.

A warranty is the first layer of mechanical breakdown coverage on any new vehicle. The coverage is provided at no cost to the buyer by the manufacturer. A warranty has a specific term expressed in months or miles and usually protects the entire vehicle against defects in workmanship and material. This is known as "bumper-to-bumper" protection.

An extended warranty – also known as a service contract – can cost you thousands of dollars and most consumers collect very little on this type of investment. It extends the mechanical breakdown protection beyond the basic warranty term and applies to specific assemblies contained within the vehicle. A good example is the powertrain warranty. In this case, only the powertrain (engine, drive axle, transmission) is protected for an additional length of time or miles, such as six years or 60,000 miles. These extended warranties cost extra and are sold separately.

Another type of warranty is known as a vehicle service contract and is a written agreement between the vehicle buyer and the dealership. The contract is often mistakenly called an extended warranty. The dealer becomes responsible for providing mechanical breakdown coverage or reimbursement to the vehicle owner. Most service contracts are restrictive and conditional. The dealer is allowed to set the actual price of the contract at whatever level he chooses.

Mechanical Breakdown Protection through Holyoke Credit Union

If you will be keeping your car for quite a few years, Mechanical Breakdown Protection is a good idea . . . and a good deal. Holyoke Credit Union offers Mechanical Breakdown Protection to its members and provides fairly-priced polices for both new and used cars. This cost is about half what a dealer would charge you for a typical extended warranty. Another benefit is that Mechanical Breakdown Protection usually allows you to take your car to your repair shop, where dealer warranties limit work to specific dealerships.

Available only to our members, Holyoke Credit Union Mechanical Breakdown Protection offers the following:

  • You can purchase coverage for both new and used vehicles
  • Competitive pricing compared to plans offered by many auto dealers
  • All MBI plans also include 24-hour emergency roadside service and rental car allowance
  • Three plans to choose from – Easy Street, Main Street, and First Street
  • Nationwide protection
  • Comprehensive coverage designed to keep your vehicle on the road
  • No deductible on covered parts and labor
  • 60-day "Free Look" allows you to cancel for any reason within the first 60 days and receive a full refund

Easy Street, Main Street, or First Street Coverage*

Components Covered – Because so many components are covered, it is not possible to list everything. Instead, here are a small number of items that are not covered: oil, brake shoes, belts, hoses, tires, tune-up items, filters, a/c coolants, exhaust and emission parts, sound reproduction, cosmetic and body parts, glass and paint.

Air Conditioning

Compressor, evaporator, accumulator, and condenser if factory installed.


Power steering pump, steering gear housing and its internal parts, rack and pinion assembly.


Master cylinder, ABS master cylinder, vacuum booster, wheel cylinders, disc brake calipers, hydraulic lines, fittings.


Radiator, fan clutch, water pump, cooling fan motor.


Timing chain, belt tensioner and guides, intake manifold, head gaskets, valve lash adjusters, pickup screen and tube, valve guides, valve spring locks and retainers, harmonic balancer.

Fuel Delivery

Fuel pump, fuel tank, fuel injectors, metal fuel lines, fuel sending unit.

Front Suspension ♦

Upper/lower control arms, upper/lower ball joints, steering knuckle, wheel bearings, control arm shaft, and bushings.  ♦ Vehicles under 85,000 miles at contract purchase.


Battery, voltage regulator, alternator, wiper motors and module, window motors, cooling fan motor, electric fuel pump, ignition module and coils, engine operation computer, distributor, starter, starter solenoid, seat motors, door lock actuators, manually operated switches for above listed parts.

Automatic Transmission

Chain, drum assembly, solenoids, bushings, accumulator, clutches, bands, servos, parking pawl, speedometer gear, transmission cooler, pistons.


Crankshaft and bearings, oil pump, pistons, rings, connecting rods and bearings, timing gears, chain/belt, camshaft, bearings, push rods, rocker arms/shaft, hydraulic lifters, intake and exhaust valves, springs. Engine blocks covered if mechanical failure was caused by above listed parts.

Standard Transmission

Internal transmission parts consisting of gears, input and output shafts, bearings, overdrive housing. Transmission case if malfunction was caused by the above listed parts.

Automatic Transmission

Internal transmission parts consisting of gears, input and output shafts, bearings, front pump, planetary assembly, sprags, governor assembly, valve body, torque convertor, transmission case.

Drive Axle Assembly

  • 2-Wheel Drive:
  • Drive shaft, ring/pinion gears, pinion bearings, side carrier bearings, carrier assembly, thrust washers, axle, axle bearings, universal joints, CV joints (except if boot was damaged or missing), drive axle housing.
  • 4-Wheel/All-Wheel Drive:
  • Drive shaft, differential and CV joints, transfer case parts listed on contract (except if boot was damaged or missing).


Water Pump – limited to 50% parts and labor.


Alternator, Starter and Voltage Regulator – limited to 50% parts and labor.

*This information provides a basic overview of each plan.

How to obtain Mechanical Breakdown Protection

Please consult with one of our loan representatives to discuss the Mechanical Breakdown Protection program in more detail. Or, call us at (413) 532-7007.

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