A fail-safe steering system for a vehicle, which prevents movable elements of a backup mechanism from being dragged by motions of an associated one of a steering input section and a steering output section under normal operating conditions of the system, is provided. The fail-safe steering system includes two selectively engageable clutch mechanisms operatively connectable between the steering input section and the backup mechanism and between the backup mechanism and the steering output section. The fail-safe steering system also includes a mechanism for keeping the backup mechanism in the neutral condition during backup mechanism being mechanically separated under normal operating conditions of the system.