Is GEICO’s Mechanical Breakdown Insurance Worth It?
Last Updated on October 11, 2021
GEICO offers mechanical breakdown insurance (MBI) to cover certain vehicle repair costs.
If your new vehicle breaks down, then mechanical breakdown insurance covers certain costs related to that breakdown. As with all insurance, GEICO’s mechanical breakdown insurance may or may not be worth it, depending on your insurance needs and risk tolerance.
Is GEICO’s mechanical breakdown insurance worth it? Should you add GEICO’s mechanical breakdown insurance to your policy? Keep reading to discover everything you need to know about GEICO’s mechanical breakdown insurance and how it works.
Table of Contents:
- How Does GEICO’s Mechanical Breakdown Insurance Work?
- What Does GEICO’s Mechanical Breakdown Insurance Cover?
- GEICO Mechanical Breakdown Insurance Versus Extended Warranties
- Who Qualifies for GEICO Mechanical Breakdown Insurance?
- GEICO MBI Reviews: What Do Customers Have to Say?
- How Much Does GEICO’s Mechanical Breakdown Insurance Cost?
- Is GEICO’s MBI Worth It?
How Does GEICO’s Mechanical Breakdown Insurance Work?
To determine if GEICO’s mechanical breakdown insurance is worth it, you need to know how it works.
GEICO offers MBI to most customers. You can add it to your existing car insurance policy. If you already have a full coverage car insurance policy with GEICO, then you may consider adding GEICO’s MBI for added coverage and peace of mind.
MBI compensates drivers for repairing vehicle parts when parts break down from standard use. If parts of your vehicle break down because of poor workmanship or defective parts, then MBI could cover the cost of repairing or replacing these components.
In other words, MBI functions similar to a warranty or extended warranty. If your car is no longer covered by its warranty, or if you did not purchase an extended warranty, then you may consider purchasing GEICO’s MBI coverage.
However, if you already have a warranty or an extended warranty, then there’s little incentive to purchase GEICO’s mechanical breakdown insurance: you’re already covered against manufacturer’s defects and similar issues.
What Does GEICO’s Mechanical Breakdown Insurance Cover?
According to GEICO.com, GEICO’s mechanical breakdown insurance is designed to cover the following:
- The cost of repairing all mechanical parts of your vehicle (except for damage related to maintenance issues and wear and tear)
You pay a $250 deductible on all covered losses, and GEICO covers the remaining repair costs linked to the issue.
GEICO Mechanical Breakdown Insurance Versus Extended Warranties
People typically buy mechanical breakdown insurance because they like the idea of an extended warranty without actually buying an extended warranty.
Many drivers also buy GEICO’s mechanical breakdown insurance after their vehicle’s warranty has expired. If you want to stay protected against manufacturer’s defects and similar issues after the warranty expires, then mechanical breakdown insurance may be the right choice.
GEICO’s mechanical breakdown insurance has several advantages over extended warranties, including:
- Covers all parts and systems (not just the specific list of items covered by dealer warranties)
- Saves you money because you only pay a small premium increase each policy period (instead of a lump sum for an extended warranty upfront)
- Allows you to repair your car wherever you like (instead of forcing you to use the dealership or an approved mechanic)
As GEICO.com explains, “it’s no contest” when debating between mechanical breakdown insurance and an extended warranty. For most drivers, mechanical breakdown insurance offers better coverage.
Who Qualifies for GEICO Mechanical Breakdown Insurance?
GEICO’s mechanical breakdown insurance is not available on all vehicles. You must have a newer vehicle with fewer than a specific number of miles to qualify for GEICO’s MBI coverage.
To qualify for GEICO’s MBI coverage, your car must meet the following requirement:
- MBI is available on new or leased cars that are less than 15 months old and have fewer than 15,000 miles
Once your vehicle has qualified for MBI and you’ve added it to your policy, you can renew MBI for up to seven years or 100,000 miles (whichever comes first).
In some cases, GEICO may decline to offer mechanical breakdown insurance on higher-end vehicles or unique vehicles with higher repair costs (like a Tesla), even if your vehicle would normally qualify. If your vehicle is too expensive to cover with mechanical breakdown insurance, then GEICO may decline the coverage.
GEICO MBI Reviews: What Do Customers Have to Say?
GEICO is America’s second-largest auto insurance company, trailing only State Farm. Thousands of GEICO customers across the country have left reviews for the company’s mechanical breakdown insurance.
First, GEICO has an A.M. Best financial strength score of A++. Only 5% of home and auto insurance companies in the United States earn a rating this high. That means GEICO is in a strong position to cover its liabilities and pay out insurance claims without issue.
GEICO also has an A+ rating from the Better Business Bureau. While other insurance companies are flooded with BBB complaints, GEICO has a surprisingly good BBB score.
Meanwhile, J.D. Power ranked GEICO 871 out of 1,000 for overall customer satisfaction in its 2020 survey. J.D. Power surveys policyholders across the United States who have recently made a claim, then ranks insurers based on this feedback. GEICO’s score of 871 is just under the industry average of 872, which means GEICO has average claims satisfaction compared to competing insurers.
Generally, customers are happy with GEICO’s MBI coverage and how it works. Here are some of the positive experiences shared on GEICO.com:
- One customer likes not having to pay so much out of pocket for major mechanical repairs (just pay a $250 deductible, and GEICO covers the rest)
- One reviewer likes that GEICO’s experts talk to the mechanic to make sure the repair is being completed correctly; after all, it’s in GEICO’s best interest to repair the vehicle correctly the first time (because GEICO’s mechanical breakdown insurance continues to cover the vehicle after the claim)
- Other customers like the fact that GEICO’s MBI covers the vehicle even after the factory warranty has expired; while vehicles come with a limited warranty by default, drivers cannot claim compensation from their dealership or automaker for mechanical breakdowns after this warranty expires
- Some customers like the peace of mind provided by mechanical breakdown insurance; in exchange for a few extra dollars per month, drivers know their mechanical breakdowns are covered
- Other customers like the peace of mind of mechanical breakdown insurance, providing peace of mind while being cheaper than an after-market warranty from the automaker
For all of these reasons, GEICO’s MBI is well-reviewed by customers online.
How Much Does GEICO’s Mechanical Breakdown Insurance Cost?
The cost of GEICO’s mechanical breakdown insurance varies based on the car you drive, your annual mileage, and the age of your vehicle.
Typically, however, GEICO’s mechanical breakdown insurance will add only a few dollars per month to your policy.
Drivers report paying anywhere from $75 to $200 per year for GEICO’s mechanical breakdown insurance, for example, or around $6 to $17 per month.
Is GEICO’s MBI Worth It?
To determine if GEICO’s mechanical breakdown insurance is worth it, you need to consider the cost of the policy, the cost of repairing your vehicle, and your risk tolerance, among other factors.
Let’s say you can buy GEICO’s mechanical breakdown insurance for $100 per year.
You have a new vehicle but the warranty has expired. Generally, mechanical breakdowns do not occur on new vehicles. Statistically, you’re unlikely to experience a mechanical breakdown within the first few years of owning a vehicle.
However, mechanical breakdowns can be expensive when they do happen. A blown transmission, for example, could cost anywhere from $2,000 to $3,500 to repair.
If you need to make a mechanical breakdown insurance claim, you pay a $250 deductible first. Then, GEICO covers the remaining repair costs.
If you spend $100 per year on MBI over seven years, then you’ve spent a total of $700. If you experience a mechanical breakdown that cost over $950 to repair ($700 plus your $250 deductible) during that time period, then your MBI was worth it.
Of course, even if you don’t make a claim during that time period, MBI may be worth it for peace of mind. Many drivers are willing to pay a few extra dollars per month for the reassurance of avoiding costly repair bills.
Final Word on GEICO’s Mechanical Breakdown Insurance
GEICO’s mechanical breakdown insurance may be worth it depending on your vehicle, your risk tolerance, and the price GEICO offers you. If you’re the type of person who likes to buy an extended warranty for added peace of mind, then GEICO’s MBI offers similar coverage at a cheaper price.
Contact GEICO to request a mechanical breakdown insurance quote today to determine if it’s worth it for you.