Is Geico Mechanical Breakdown Insurance Worth It? Understanding the Pros and Cons

Geico mechanical breakdown insurance (MBI) provides an affordable way to protect yourself from major repair costs after your factory warranty expires. But is it truly worth the investment compared to other extended coverage options?

This comprehensive guide examines the key benefits and potential drawbacks of Geico MBI to help you decide if it’s the right choice for your vehicle.

What is Geico Mechanical Breakdown Insurance?

Geico MBI functions similarly to an extended car warranty in that it covers repairs due to mechanical defects or faulty workmanship. This is different than standard Geico auto insurance which only handles collision damage and comprehensive claims like theft or vandalism.

With MBI, you pay an additional premium and Geico will pay for certain repairs needed due to mechanical failure during normal driving once your manufacturer’s warranty runs out.

Here’s an overview of how Geico MBI works:

• Covers vehicles under 15 months old and 15,000 miles
• Acts as secondary coverage to your factory warranty
• Can be renewed annually for up to 7 years or 100,000 miles
• $250 deductible per covered repair visit
• Must be pre-approved before you have work done

What Does Geico MBI Cover?

Geico MBI provides comprehensive coverage for nearly all mechanical and electrical components in your vehicle. Apart from some wear-and-tear exclusions, it functions similarly to a new car warranty.

Covered parts and systems include:

• Engine
• Transmission
• Drive axle
• Steering
• Suspension
• Brakes (excluding pads and shoes)
• Electrical components
• Air conditioning
• Audio/entertainment

Geico MBI explicitly does NOT cover:

• Regular maintenance like oil changes, filters, etc.
• Tires
• Batteries
• Normal wear parts like brake pads, wiper blades, etc
• Damage from accidents or environmental factors
• Damage from misuse or improper maintenance

So while very comprehensive, you’ll still pay out of pocket for routine upkeep and minor repairs. Major mechanical failures are where Geico MBI provides value.

How Much Does Geico MBI Cost?

Reported rates for Geico MBI are generally between $100-$150 per year depending on your vehicle. However, prices can vary significantly based on factors like:

• Vehicle make, model, age and mileage
• Your driving and claims history
• Your Geico auto policy discounts
• Where you live

You’ll need to get a direct quote from Geico to see exact MBI pricing for your situation. Be prepared to provide your VIN.

The $250 deductible per visit also impacts the true out-of-pocket cost if you need to use the coverage. While affordable upfront, you’ll pay the first $250 for each repair before Geico coverage kicks in.

Pros of Geico Mechanical Breakdown Insurance

There are some advantages that make Geico MBI an appealing choice over other extended warranty options:

Affordable Premiums

Annual rates from $100-$150 make budgeting simple and predictable. Much cheaper than most third-party extended warranties.

Comprehensive Repair Coverage

Geico MBI covers nearly all major mechanical components. Provides extensive protection like a new car warranty.

Reputable Provider

As an insurance product from a leading national brand, Geico MBI provides peace of mind. Backed by a trusted company.

Easy Add-on to Existing Policy

Convenient to add MBI when you have a Geico auto policy. Deal with one company for multiple protections.

Transferable to New Owners

Remaining MBI coverage can transfer to a new owner if you sell your vehicle. Adds resale value.

Official Insurance Benefits

Regulated as an insurance product for added consumer protection and oversight.

For drivers already insured through Geico, MBI offers an affordable way to hedge against big repair bills down the road.

Potential Drawbacks of Geico MBI

However, there are also some limitations to consider with Geico mechanical breakdown insurance:

Strict Eligibility Rules

Geico MBI can only be purchased for newer cars under 15 months and 15,000 miles. Older used vehicles do not qualify.

Unable to Renew After Term Expires

Coverage ends after 7 years or 100,000 miles. No option to renew or extend with Geico MBI.

Limited Coverage Options

Geico only offers one standard MBI plan. No choices for higher or lower levels of protection.

High $250 Deductible

You pay out-of-pocket for the first $250 of every covered repair which adds up.

Must Use Geico Repair Shops

Geico requires you to take your car to an authorized repair facility in their network or repairs may not be covered.

Not Available in All States

Geico MBI is not offered in some states like California and Oklahoma. Coverage depends on your location.

Repair Pre-Approvals

You must get every repair pre-approved by Geico before work begins, which can cause delays.

While the cost is low, there are some drawbacks like usage limits and restrictions to consider before choosing Geico MBI protection.

Is Geico MBI Worth the Investment?

Whether Geico mechanical breakdown insurance is “worth it” depends heavily on your individual situation:

Your Vehicle’s Reliability

Research typical repair costs and common issues for your make/model. Does it have expensive transmission problems at higher mileage?

Your Repair Budget

How much could you afford to pay out-of-pocket if faced with a $1,500 transmission rebuild? Peace of mind has value.

Your Mechanical Aptitude

Will you DIY maintenance and minor repairs? MBI won’t cover these so less value if you handle basic work.

Your Geico Policy Status

Already insured with Geico? MBI makes sense as an add-on. Using another insurer? You may have better options.

Your Vehicle’s Age

The older your vehicle, the less useful Geico MBI becomes based on the limits. Best for newer cars.

Your Intended Ownership Length

If you plan to own the car beyond 7 years/100K miles, MBI coverage will expire before other extended warranty choices.

For those with newer cars and existing Geico insurance, MBI provides affordable extended protection. But for older paid-off vehicles, third-party coverage may be the better route.

Alternatives to Geico Mechanical Breakdown Insurance

You have a few options beyond Geico MBI for extended mechanical coverage:

Other Insurer MBI Plans

A small number of companies like Progressive offer similar mechanical breakdown policies. But they have the same limits as Geico’s coverage.

Manufacturer Extended Warranties

The dealer may offer a factory-backed extended repair warranty beyond the initial included coverage. But these expensive plans typically fall short of third-parties.

Third-Party Extended Warranties

Reputable providers like Endurance and CarShield offer longer terms, more choices, and better deductibles. The best alternative to Geico MBI for comprehensive protection.

Third-party warranties let you get coverage for vehicles outside Geico MBI’s strict age and mileage limits. And providers like Endurance offer plans that extend beyond 7 years or 100,000 miles.

Are Third-Party Extended Warranties Better than Geico MBI?

Third-party extended warranties generally provide more flexibility and better protection than Geico MBI or other mechanical breakdown insurance policies.

Here are some of the advantages of third-party extended warranties:

• Vehicle age/mileage limits – Coverage available for both newer and older vehicles with higher mileage
• Longer terms – Some plans extend coverage up to 15 years or 200,000+ miles
• Plan options – Multiple tiers of coverage from basic powertrain to bumper-to-bumper
• Lower deductibles – $0, $50 or $100 deductible options keep more money in your pocket
• Additional benefits – Perks like roadside assistance, rental cars, and trip interruption
• Reputable providers – Leading third-party warranty companies have strong industry standing

While a bit more expensive upfront, the longer terms, lower deductibles, and added benefits of third-party warranties make them a better investment compared to limited mechanical breakdown insurance overall.

The Bottom Line: Who is Geico MBI Best Suited For?

Geico MBI offers great value for these specific situations:

• You already have Geico auto insurance – Easy to add on MBI to current policy
• You purchased a new or newer used car – Meets age/mileage eligibility requirements
• You plan to keep the car less than 8 years – MBI terms will cover entire ownership period
• You have savings to afford the $250 deductible per repair – Keeps premium costs low
• You drive a reliable model with no known expensive issues – Reduces chance of needing major repairs

However, for older paid-off vehicles, drivers wanting lower deductibles, and those planning long-term ownership, a third-party extended warranty likely provides better protection.

While not right for everyone, Geico MBI serves a purpose for budget-conscious drivers wanting basic extended coverage from their existing auto insurance provider. Just be sure to read the fine print to avoid any surprises.