Geico Mechanical Breakdown Insurance Review
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As the name implies, this is an additional option on your Geico car insurance policy that will pay…wait for it…for your car’s mechanical breakdowns.
Pretty no-nonsense name, eh?
Who Qualifies for Geico Mechanical Breakdown Insurance?
However, not every Geico insurance customer can purchase this coverage when they sign up. There are a few requirements to be met.
MBI is only available for any new or leased vehicle that is both less than 15 months old and has less than 15,000 miles on it.
Once you purchase the coverage however, it can be renewed under subsequent policy terms for up to seven years or 100,000 miles, whichever comes first. It is similar to a warranty in this respect.
How Does Geico MBI Work?
Similar to the physical damage coverage portion of your auto policy, which is necessary if you lease or finance your ride, you are responsible for a $250 insurance deductible for all insurance claims tied to mechanical breakdown.
The rest of the cost is covered by Geico once the deductible is satisfied.
Note: If you have a regular warranty and Geico MBI, the MBI is secondary coverage to the warranty.
This means you would only collect from Geico if your existing warranty does not cover the complete cost of your repairs AND the $250 deductible is met.
Better Than an Extended Warranty?
You betcha! Geico MBI includes coverage for all parts and systems on your vehicle. A quick review of the fine print on your dealership extended warranty will show that only specific items are covered and exclusions exist.
Also, the dealership warranty is going to cost much more upfront money. They are usually looking for a lump sum of cash to get the warranty in place.
With Geico MBI, you are going to spread the cost for this valuable coverage over your policy term, just like how your regular insurance premium is paid.
Tip: The same goes for loan/lease GAP insurance on a new vehicle. You are much better off purchasing this coverage from your auto insurer than financing it with your car.
It will be much cheaper, and you won’t have to pay it for the life of your loan, which is not necessary unless you paid WAY TOO MUCH for your car.
Also, with Geico MBI, you won’t be stuck taking your car to the dealership for repairs. You are free to visit a mechanic of your choice, which is how it works for any covered auto insurance claim.
Final Word on Geico MBI
Bells and whistles, such as accident forgiveness and new car replacement, can be great “bonus” additions to an insurance policy, but should certainly not be the deciding factor on which company you ultimately purchase coverage from.
Insurers add these options because they know they’re going to make money on it. The odds of totaling your new car or having an uncovered mechanical breakdown are slim, which is one way insurers make money.
Read more: Geico home insurance review.