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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Sep 7, 2021

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The Truth in a Nutshell

  • GEICO Mechanical Breakdown Insurance is only available if your car has less than 100,000 miles and must be started before your car has more than 15,000 miles
  • Wear and tear and damages from an accident are not covered
  • Adding the coverage can cost as little as $30 a year

Insurers are constantly looking for ways to make more money by offering additional coverage options. Enter GEICO Mechanical Breakdown Insurance or MBI for short.

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.

What does liability car insurance cover? With liability only, nothing on your vehicle will be covered in the event of an accident or damages.

But how much is GEICO Mechanical Breakdown coverage? If you’re interested in buying GEICO car insurance, it’s important to know what you’re signing up for.

Enter your ZIP code above to get a free insurance quote today that includes mechanical breakdown insurance.

What’s covered under GEICO Mechanical Breakdown Insurance?

What is GEICO Mechanical Breakdown Insurance?

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.

GEICO MBI covers items like transmission problems, bad brakes, or even electrical repairs. However, it does not cover items deemed wear and tear, such as tire problems, oil changes, or tune-ups. It also doesn’t cover damages from an accident.

Note: If you have a regular warranty and Mechanical Breakdown Insurance from GEICO, 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.

If you need to file a GEICO MBI claim, there is a specific process to follow for things to go smoothly.

Steps for Filing an MBI claim with GEICO
Report your MBI claim by calling (800) 443-7411
A claim examiner will call you within 24 hours to explain the process, keep you informed throughout the repair process, and ensure that your vehicle is properly repaired
Take your vehicle to the repair facility of your choice. You will need to give the repair shop your GEICO policy number and have them call GEICO with an estimate before they begin to fix your vehicle.
A claims examiner will determine if they need to inspect your car before repairs begin, usually within 24 hours.
GEICO pays the repair shop for the approved repairs, and you also pay your $250 deductible directly to the repair facility.
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It’s important to note that if you have repairs done before contacting GEICO, your claim may not be approved. It’s best to follow the process for fewer headaches.

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How much does GEICO Mechanical Breakdown Insurance Cost?

Generally, the cost to add GEICO MBI isn’t that high. Adding MBI from Geico will cost you about $30 a year for most cars.

It’s also important to note that some higher-end cars won’t be able to add this coverage due to repair costs being so high. Speak with an agent to determine if your car is eligible.

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.

What other kinds of auto insurance coverage are available from GEICO?

GEICO offers most of the coverages offered by all major auto insurance providers, including liability coverage (bodily injury and property damage liability), collision coverage, and comprehensive coverage. You can also add the following types of coverage to your auto insurance policy:

  • Medical payments coverage
  • Personal injury protection
  • Uninsured/underinsured motorist coverage
  • Rental car reimbursement coverage
  • Roadside assistance
  • GAP insurance

GEICO also offers a wide range of other insurance products, and you might receive a multi-policy discount for bundling GEICO auto insurance with a homeowners insurance policy, life insurance policy, motorcycle insurance policy, rideshare insurance policy, etc.

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What auto insurance discounts are available from GEICO?

In addition to the multi-policy discount, GEICO offers the following discounts for auto insurance:

  • Military discount
  • Good student discount
  • Use of seat belts discount
  • Defensive driving discount
  • Federal employee discount
  • New vehicle discount
  • Multi-vehicle discount
  • Anti-lock brakes discount

This is just a selection of GEICO’s discounts. Make sure to speak to a GEICO insurance agent about what discounts you might be eligible for.

How do you contact GEICO?

You can reach a GEICO customer service agent by calling the company’s customer service line at (800) 207-7847. Keep in mind that if you’re a GEICO customer, you have online access to many policy service options through the company’s website and the GEICO mobile app.

What’s the difference between GEICO Mechanical Breakdown Insurance vs an extended warranty?

GEICO mechanical insurance 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 rate 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.

According to the Consumer Financial Protection Bureau, if you don’t have auto insurance in place when you buy your new car, a deal can force you to purchase their much more expensive insurance.

It will be much cheaper to have your own insurance with add-ons like MBI, 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 coverage, 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.

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Is GEICO mechanical breakdown insurance worth it?

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.

What’s the bottom line?

The price of adding mechanical breakdown insurance varies based on the type of car you drive, and you must own the vehicle outright to qualify for MBI. Your mileage limit is determined at the time of renewal.

Be sure to get an auto insurance quote from multiple companies and speak to an independent insurance agent (or two) to ensure your coverage is adequate and you aren’t paying too much on your auto insurance premiums for things you don’t really need.

To compare quotes and find a policy with mechanical breakdown insurance, enter your ZIP code now.

References:

  1. https://www.consumerfinance.gov/ask-cfpb/what-is-force-placed-insurance-en-827/