What is breakdown coverage?

Breakdown coverage is insurance that extends or supplements a car's existing warranty, says Progressive Insurance. It serves as a safety net for unexpected mechanical breakdowns, and coverage levels can vary based on a customer's needs and desires, according to MoneySuperMarket.com.

Mechanical breakdown insurance is similar to a vehicle warranty, but it is designed to break up the cost over time instead of charging a lump sum when a vehicle is purchased. This coverage can be used in place of a dealer's extended warranty when a manufacturer warranty expires. Breakdown coverage does not cover maintenance or wear and tear, according to Geico Insurance.