Mechanical Breakdown Insurance

[Dagny]

Am just off the phone with a Geico insurance agent to see how much it would cost to add a Gladiator to my existing policy. Was delighted to discover that I could get "Mechanical Breakdown Insurance" for $94 annual.

My biggest hesitation with the Gladiator has been Jeep's poor reputation for quality. I keep my vehicles for a long while (am original owner of my 2004 Honda Element) and have had Honda and Mazdas for the past 30 years. So I've been thinking about an extended warranty and this Geico add-on sounds like it may be a wise option.

Any fellow forum members have thoughts -- or experience -- in regard to how this mechanical breakdown insurance compares to an extended warranty? Of course, there probably is variance among extended warranties....

https://www.geico.com/auto-insurance/mechanical-breakdown-insurance/

From Geico's website: "MBI is available for new or leased cars that are less than 15 months old and with less than 15,000 miles. Once you've purchased MBI, you can renew it for up to seven years or 100,000 miles (whichever comes first). After a $250 deductible on a covered loss, car repairs to all mechanical parts of the car (except for maintenance and wear and tear*) are covered."

Would really appreciate others perspectives.

Thanks.

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[Dagny]

The Geico website fine print on the exclusion for "wear and tear" (will have to research what constitutes "misuse"):

*MBI Exclusions

Exclusions to this policy include regular maintenance services such as tune-ups, suspension alignment, wheel balancing, filters, lubrication, coolant and fluids, spark plugs, brake pads and linings, brake shoes, and tires.

Also, breakdown repairs made necessary by intentional damage, corrosion, misuse, or improper maintenance are not covered. Mechanical Breakdown Insurance coverage is in excess of coverage provided by your manufacturer's warranty. Read the policy amendment for the complete terms and conditions of this coverage.

 

[Renegade]

I think we have towing as part of the Jeep Wave and factory warranty. I'm not sure what the period is though. I still have towing on my insurance policy. It's cheap.

 

[CivilJeep]

Here's the issue I have with MBI; I'm now locked into my auto insurance carrier, or I lose my service contract. I routinely shop to make sure I'm getting a good deal on auto insurance. However, if I purchase MBI, I either can't leave if they raise rates, or lose my mechanical coverage if I do. And yes, it is $94 yearly now, but do you think it will still be that same cost when its 4, 5 or 7 years old? It won't, and you will not be able to leave Geico if you want MBI coverage. Also, if you offload the Gladiator in the first few years while it's still under the 5yr/60k mile powertrain warranty, you've paid those annual rates without benefit. For me, I'll take the MOPAR coverage that is prorated and not contingent upon my insurance carrier.

 

[Dagny]

I've always had towing insurance (though have rarely needed it with the Honda and Mazdas).

What makes this "Mechanical Breakdown" insurance notable is that it covers the mechanical problems not covered by Jeep's warranty. It's not towing insurance.

 

[Dagny]

All good points to consider, thanks for raising them.

I've been with Geico for 31 years so switching appears not to be in my DNA.

On average, I keep my vehicles over ten years and that is the plan with the Gladiator. Helps, a lot, that I walk-bike-motorcycle to work.

I need to study MOPAR coverage more closely. Have not yet done a side-by-side.

Thanks again for your input!

 

[Dagny]

Thanks to a kind soul here, for comparison purposes I was directed to MOPAR's optional factory plans. For the interest of others, below is the link to the plan (7 year/100k miles/$200 deductible) apparently most comparable to Geico's mechanical breakdown insurance (7 year/100k/$250 ded.). I have further research to do to determine if this is an apples-to-apples or apples-to-oranges comparison.

The MOPAR plan would cost $1795

The Geico plan would cost $94 a year


https://www.factoryplans.com/assets/cms/files/NewMaxCare2014.pdf


MOPAR-Covered

Engine & Emissions
Transmission
Driveline
Steering
Air Conditioning
Engine Cooling And Fuel System
Electrical/Expanded Electrical
Front/Rear Suspension
Brakes/Anti-lock Brakes
Instrumentation
Power Group
Luxury Group
Body Mechanisms
Manual Interior Mechanisms
Safety And Security


MOPAR plan includes:

• Heated Seats and Steering Wheels • Power Liftgate Motors
• Power Sliding Door Motors
• Navigation Systems
• Factory-installed Remote Start Systems • In-Vehicle Wireless Charging Stations
• Backup Assist Cameras and much more!

NOT COVERED BY MOPAR -- UNDER OUR MAXIMUM CARES PLANS

• Maintenance Services and items used in such services
• Catalytic Converter and Particulate Filter • Glass, Plastic Lenses and Light Bulbs
• Body and Paint items (including Soft Trim) • Snowplows, Winches and Trailer Hitches
• Wear items (such as Tires, Manual Clutch Assembly, Brake Pads, Shoes, Rotors, Drums, Belts and Wipers)

 

[Dagny]

The GEICO pitch, from its website:

"Why not just get an extended warranty, you wonder? You could—if you want to pay more for less protection. GEICO's Mechanical Breakdown Insurance (MBI) provides better coverage at a cheaper price than the typical dealer extended warranty. GEICO's MBI coverage:

• Includes all parts and systems not just the specific list of items covered by most dealer warranties.
• Saves you money, charging only a small premium per each policy period, instead of a large lump-sum payment up front.
• Lets you get your car repaired wherever you like.

 

[SelfmodJT]

I just got off the phone with geico myself. I think i will go with the plan. You have to add the MBI by 15 month and 15k miles. I think it will be well worth the investment at the 15th month of ownership. They said the rate is locked in at a % of your premium. So as long as you dont get points or accidents, the premuium should remain the same.

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