What is typically the policy term for a used car under a mechanical breakdown policy?

The typical policy term for a used car under a mechanical breakdown policy is 12,000 miles or 12 months. This duration is standard as it aligns with providing a reasonable protection period for the vehicle significantly more than a new car warranty. The intent of a mechanical breakdown policy is to cover unexpected repair costs that may arise based on the age and usage of the vehicle.

Under this policy term, both the mileage and time frame are designed to strike a balance, offering adequate coverage without extending to excessive limits that may not be as financially viable for insurers. It is important to note that higher mileage or longer terms are often associated with vehicles that have a higher probability of needing repairs, which could lead to increased risk and costs for the insurance provider.

The other options offer either shorter or longer terms that do not align with typical industry standards for a used vehicle. Thus, selecting 12,000 miles or 12 months accurately reflects the common practice observed in the market.