Which statement about Mechanical Breakdown Insurance is FALSE?

Mechanical Breakdown Insurance (MBI) is designed to cover the costs incurred for repairs due to mechanical failures outside of vehicle accidents. When evaluating the statements regarding MBI, it's important to understand the standard scope of coverage.

The option stating that towing and roadside assistance are covered once a covered breakdown has occurred is inaccurate because MBI typically does not include provisions for roadside assistance or towing expenses. Most of the time, these services are found in separate policies or are available as add-ons, not within standard MBI coverage.

On the other hand, the other statements reflect common limitations of MBI. For instance, coverage does not extend to wear and tear of replaceable parts or specific components like bodywork, windshield wipers, and the catalytic converter. It also has a limitation on the amount it will cover, stating that it won't pay for repair costs that exceed the vehicle's actual cash value. Therefore, while MBI is beneficial for unexpected mechanical failures, its limitations must be understood thoroughly to avoid any misconceptions about the extent of the protections it offers.