Which statement is TRUE regarding Mechanical Breakdown Insurance?

Mechanical Breakdown Insurance is specifically designed to cover the repairs of mechanical failures in a vehicle. The statement indicating that it will not cover the cost of repairs that exceed the value of a vehicle is true based on the principles of insurance. Insurers typically will not pay more for repairs than the actual cash value of the vehicle. This ensures that the coverage is aligned with the principle of indemnification, which aims to restore the policyholder to their pre-loss financial position without providing a profit.

In the context of the other statements, Mechanical Breakdown Insurance is generally focused on mechanical failures rather than routine maintenance (which rules out the first statement regarding oil changes and tire rotations), and it typically does not cover damage caused by deliberate acts like driving into a lake or damage caused during the towing process. Therefore, the only accurate reflection of what Mechanical Breakdown Insurance entails is the limitation on coverage relating to costs that exceed the vehicle's value.