Geico Mechanical Breakdown Insurance: Review & Cost
Should you add mechanical breakdown insurance to your existing Geico policy? Learn more about this coverage and how it compares to an extended warranty.
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Key Points:
- Mechanical breakdown insurance (MBI) is similar to an extended car warranty in that it covers repair costs related to faulty components or workmanship.
- MBI plans are regulated by state insurance commissions, while extended warranty plans are not.
- Your vehicle must be less than 15 months old to qualify for Geico MBI.
In addition to the standard types of auto insurance, Geico also offers a product called mechanical breakdown insurance (MBI). Geico MBI is available to most customers and can be added to existing policies for a fairly low price. But do you need MBI?
Mechanical breakdown insurance is similar to an extended car warranty in that it helps cover the cost of repairs if your vehicle unexpectedly breaks down. Our review team has taken a close look at the best extended car warranty options on the market, and while an MBI policy isn’t exactly the same as an extended warranty, both provide similar coverage. Read this review to see how MBI policies compare to extended warranties and learn if Geico mechanical breakdown insurance is a good investment.
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What Is Geico Mechanical Breakdown Insurance?
Geico mechanical breakdown insurance is a type of car insurance that covers repairs to certain vehicle parts after they break down due to normal use. MBI policies are one way to protect your wallet against hefty repair costs if your vehicle has faulty mechanical parts or defects in workmanship. In this way, they are similar to car warranties.
Geico is one of the only top insurance companies that offers additional mechanical breakdown coverage for car repairs. Through Geico, mechanical breakdown insurance is available for leased or new vehicles that are less than 15 months old and have less than 15,000 miles on the odometer. Coverage is renewable up to 7 years/100,000 miles. Geico MBI covers all vehicle parts and systems, with a small list of exclusions.
Geico Mechanical Breakdown Insurance Exclusions
Some of the items not included in Geico MBI coverage are:
- Regular maintenance services such as tune-ups, wheel balancing, and suspension alignments
- Maintenance parts like filters, lubricants, coolant, and fluids
- Wear-and-tear parts that deteriorate naturally over time, such as spark plugs, tires, and brake pads, brake shoes, and linings
Only damage that results from normal use is covered. Geico’s MBI policy does not cover intentional damage and damage that results from misuse or improper maintenance. Additionally, it will not cover damage that results from a crash, vandalism, or weather–you will need collision and comprehensive car insurance policies for those incidents.
How to Use Geico MBI
If you need a repair that’s covered under Geico mechanical breakdown insurance, you can take your vehicle to the repair facility of your choice and provide your MBI policy number. Geico will then go about authorizing your MBI claim. If your claim is approved, Geico will pay the repair shop directly, minus a $250 deductible that you will need to pay out of pocket.
Geico Mechanical Breakdown Insurance Cost
Gieco doesn’t list the cost of its mechanical breakdown insurance online. But like any type of car insurance, the cost of Geico mechanical breakdown insurance will vary from person to person. It’s typically an add-on to your car insurance policy, and different factors can affect the cost. Some of these factors include:
- Vehicle make and model
- Vehicle age
- Your age
- Where you live
- Your driving history
Is Geico Mechanical Breakdown Insurance Worth It?
A Geico mechanical breakdown insurance policy may be worth it for some drivers, but not all. If you’re able to lock in a low annual rate, MBI can give you added peace of mind on the road, knowing you’re covered in the event of an unexpected breakdown.
However, much of the coverage offered by an MBI policy is already included with your vehicle’s factory warranty. Typical new car warranty coverage lasts for three years, so you are unlikely to gain any value from an MBI policy until after that time. This means that if you wait until Geico’s 15-month vehicle age cutoff, you’ll be paying for MBI coverage for almost two years before you’ll see any benefit from your investment.
That said, if you’re only paying a low rate per year for the extra insurance coverage, it could be worth the upfront cost to renew your policy long-term. If you keep your policy for the full seven-year coverage term, it will end up costing significantly less overall than a typical extended auto warranty.
Mechanical Breakdown Insurance Vs. Extended Car Warranties
Mechanical breakdown insurance is similar to an extended auto warranty, though they’re not exactly the same. The table below outlines some of the key similarities and differences between what mechanical breakdown insurance covers compared to an extended warranty.
| Geico Mechanical Breakdown Insurance | Extended Car Warranty |
|---|---|
| Covers repairs after certain car parts break down or malfunction | Covers repairs after certain car parts break down or malfunction |
| Does not cover regular maintenance | Does not cover regular maintenance |
| Regulated by state insurance commissioner | Not regulated by state insurance commissioner |
| Coverage must be purchased before vehicles are 15 months old and reach 15,000 miles | Coverage can be purchased at any time |
| Coverage lasts up to 7 years or 100,000 miles | Depending on the provider, coverage can last up to 15 years or 250,000 miles |
| Paid monthly or in a lump sum as part of car insurance premium | Can be paid monthly or in a lump sum as a separate bill |
| $250 deductible | Deductible options between $0 and $200 |
| Typically low yearly rates | Costs $977 yearly on average |
| One coverage level | Multiple levels of coverage |
Geico MBI Vs. Extended Car Warranty: Key Differences
One important difference between mechanical breakdown insurance and extended car warranties is that MBI policies are regulated by the state insurance commissioner. This extra level of security may be a deciding factor for drivers who are on the fence about extended car warranty coverage.
MBI policies also tend to cost less than extended warranties. However, they don’t provide coverage for older, used cars. With Geico, mechanical breakdown insurance must be purchased while your manufacturer’s warranty is probably still in effect.
Even taking this into account, an MBI policy is likely to be cheaper than an extended car warranty in the long run. However, Geico mechanical breakdown insurance comes with a higher deductible than most extended car warranties. If your vehicle experiences a number of inexpensive breakdowns, your policy may end up not covering many repairs.
Keep in mind that as vehicles age, the likelihood of an unexpected breakdown increases. So while an MBI policy from Geico may be a better choice for newer vehicles, an extended car warranty will likely be more beneficial for an older, higher-mileage car that’s prone to needing major repairs.
Geico Mechanical Breakdown Insurance: Our Take
Geico is one of the only major car insurance companies to offer MBI. MBI can be a good option for new car owners who want affordable coverage for peace of mind on the road.
However, if your vehicle is older than 15 months, it’s already too late to purchase Geico mechanical breakdown insurance. For vehicle protection similar to a Geico MBI policy, you could consider an extended car warranty. As with insurance, the best way to find the right price and the right policy for your needs is to shop around and compare providers.
Recommended Alternatives
Two companies we highly recommend are Endurance and Carchex. After rating and reviewing dozens of extended warranty companies, these two stood out from the pack for their high-quality coverage and outstanding customer service.
Endurance: Best Overall
Endurance warranties come with some of the most comprehensive coverage options in the industry. In addition to standard powertrain warranty and bumper-to-bumper warranty options, Endurance provides all customers with extensive benefits including:
- Rental car reimbursement
- 24/7 roadside assistance
- Trip interruption coverage
- One year of Endurance Elite Benefits
The Endurance Elite Benefits program includes total loss protection, identity theft services, key fob and tire replacements, and a collision discount, among other benefits. You can renew your membership for an additional charge after the first year.
Overall, we rated the provider 4.6 out of 5.0 stars in our Endurance warranty review. We gave it high marks for reliability, coverage plans, pricing, transparency, and customer experience. Learn more by reading the full review, and click below to get a free, personalized quote to see how much an Endurance warranty would cost for your vehicle.
Carchex: Best Industry Reputation
Carchex has one of the best reputations among extended car warranty providers. It has been endorsed by industry leaders such as Kelley Blue Book, Carfax, and Edmunds.com. Like Endurance, a range of Carchex vehicle service contracts are available for new and used vehicles. Carchex also provides additional useful benefits such as:
- 24/7 roadside assistance
- Towing reimbursement
- Rental car reimbursement
- Trip interruption coverage
Carchex is accredited by the Better Business Bureau (BBB), has an A+ BBB rating, and scored 4.4 out of 5.0 stars in our Carchex review.
See for yourself how much a Carchex plan would cost by reaching out for a free, no-obligation quote.
Geico Mechanical Breakdown Insurance: FAQ
Below are some frequently asked questions about Geico mechanical breakdown insurance:
What is mechanical breakdown insurance coverage?
Mechanical breakdown insurance, or MBI, is an insurance product that protects you from repair costs related to mechanical failure. MBI does not cover damage from accidents, lack of routine maintenance, or misuse. This specialized type of car insurance is similar to an extended warranty.
Does Progressive offer mechanical breakdown insurance like Geico?
No, Progressive does not offer MBI. Geico is one of the few major auto insurers that features MBI options.
What is the difference between a mechanical breakdown and wear and tear?
A mechanical breakdown is caused by faulty workmanship or a defective vehicle component. Wear and tear is caused by normal use over time.
How We Rate Car Warranty Companies
Our review team extensively researches extended car warranty providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:
- Reliability: Warranty providers that earn strong ratings from the Better Business Bureau (BBB), work with reliable partners and administrators, and have a long history in the warranty industry score well in this category.
- Coverage Plans: We take a close look at the coverage plans available through each provider, including how many are offered, maximum term limits, plan exclusions, and more. We also evaluate the added benefits companies include with their warranty plans, such as roadside assistance and trip interruption benefits.
- Pricing: Our team performs a secret shopper analysis for a variety of vehicles and coverage plans to get a sense of a provider’s average costs. We see how each company’s pricing, deductible options, and discount opportunities compare to competitors when determining this score.
- Transparency: We evaluate the availability and transparency of each company’s contracts, as well as whether each provider offers a money-back guarantee.
- Customer Experience: We consider customer reviews and complaints from sites like the BBB and Trustpilot. Our team also reaches out to customer service reps during our secret shopper analysis to get a sense of the customer experience with each company.
