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      05-14-2018, 04:52 PM   #1
oduli81
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Geico MBI (Mechanical Breakdown Insurance)

I have 2018 F80, not sure if I will be keeping it after 3 years. I found some interesting articles on geico and their MBI. I decided to place the additional coverage for $2.50 a month, its transferable as long as the second owner has geico or will place the car under geico. It covers, engine, transmission, suspension etc.. all major components. No wear and tear items. It's good for 7 year up to 100k. At $2.50 a month, seems like a no brainer. Only catch, your car has to have less then 15k miles and be less then 15months old. Anyone else done this yet??
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      05-14-2018, 04:57 PM   #2
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I have a 2018 and would like some insight on this as well for anyone who's on it. I know Geico is making you commit to the MBI the first 3 years (or however long your BMW coverage lasts) so if you want MBI, you have to double up on paying for warranty from my understanding.
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      05-14-2018, 05:07 PM   #3
oduli81
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Quote:
Originally Posted by SVPREME View Post
I have a 2018 and would like some insight on this as well for anyone who's on it. I know Geico is making you commit to the MBI the first 3 years (or however long your BMW coverage lasts) so if you want MBI, you have to double up on paying for warranty from my understanding.

I did a lot of resersch on this, including reviews from consumer reports, it appears legit. No doubling up, it's fairly straight forward. Even went to other forums, GM forums has a few threads on it, so far positive. Let me know if speak to them, curious to hear your outcome.
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      05-14-2018, 06:44 PM   #4
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It is legit. I remember some years back on M5Board, a member's fuel injector failed on his S85 motor and it hydrolocked. His factory warranty was already expired, but Geico MBI was still active on his policy. They covered a brand new short block from BMW ($25k) no questions asked. He actually paid the difference and upgraded to a Dinan stroker motor lol.
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      05-14-2018, 07:33 PM   #5
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I added MBI when the mileage got close to 15k. It essentially is a cheap way of getting the equivalent of extended warranty after the 4yr/50k-mile, but completely useless before that.

My understanding is MBI is only for new or leased car. So not sure about it being transferable to a 2nd owner.
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      05-14-2018, 09:08 PM   #6
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Quote:
Originally Posted by SuckaGDog View Post
It is legit. I remember some years back on M5Board, a member's fuel injector failed on his S85 motor and it hydrolocked. His factory warranty was already expired, but Geico MBI was still active on his policy. They covered a brand new short block from BMW ($25k) no questions asked. He actually paid the difference and upgraded to a Dinan stroker motor lol.
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      05-14-2018, 09:09 PM   #7
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Quote:
Originally Posted by backagain View Post
I added MBI when the mileage got close to 15k. It essentially is a cheap way of getting the equivalent of extended warranty after the 4yr/50k-mile, but completely useless before that.

My understanding is MBI is only for new or leased car. So not sure about it being transferable to a 2nd owner.
I asked that question, they said as long as the second owner has geico or will insure my car to geico.
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      05-14-2018, 09:41 PM   #8
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Are u telling me 30 dollars a yr for 7 yrs = 210 bucks will cover all mechanical failures of the car for 3 yrs / 50K miles, thats BS and not possible. Read the fine print.
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      05-14-2018, 10:12 PM   #9
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They do pay without much effort and there're much more lenient than the manufacturers' s warranty; you can have a full tune and down pipe and they'll still cover it, even if the dealer denies the repair for some bs.. Only catch is there is a $250 deductible for each repair or only $100 if you still have the manufactures warranty in effect..

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      05-14-2018, 10:16 PM   #10
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Quote:
Originally Posted by boss2k View Post
Are u telling me 30 dollars a yr for 7 yrs = 210 bucks will cover all mechanical failures of the car for 3 yrs / 50K miles, thats BS and not possible. Read the fine print.
In a nut shell yes plus a deductible (250 if I recall). It's actually free money for the gecko. They make you buy it up front as part of a package endorsement (probably added to leases as well that will never see this coverage triggered) on new cars and lock you in for as long as you own it or 7 years whatever comes first. Coverage for most cars would only be triggered in years 5-7 of ownership assuming the standard warrantee is 4 years or so and from 50-100k mikes. The likelihood of a catastrophic engine failure at that point is very, very, small. Additionally the average owner turns over cars less than every 5 years and they have the law of large numbers working for them. Their exposure is maybe 9 months max for their book. The loss ratio on this piece of their business is probably not higher than single digits.
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      05-14-2018, 10:20 PM   #11
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Quote:
Originally Posted by RobbyMack View Post
Quote:
Originally Posted by boss2k View Post
Are u telling me 30 dollars a yr for 7 yrs = 210 bucks will cover all mechanical failures of the car for 3 yrs / 50K miles, thats BS and not possible. Read the fine print.
In a nut shell yes plus a deductible (250 if I recall). It's actually free money for the gecko. They make you buy it up front as part of a package endorsement (probably added to leases as well that will never see this coverage triggered) on new cars and lock you in for as long as you own it or 7 years whatever comes first. Coverage for most cars would only be triggered in years 5-7 of ownership assuming the standard warrantee is 4 years or so and from 50-100k mikes. The likelihood of a catastrophic engine failure at that point is very, very, small. Additionally the average owner turns over cars less than every 5 years and they have the law of large numbers working for them. Their exposure is maybe 9 months max for their book. The loss ratio on this piece of their business is probably not higher than single digits.
1+ You're right, wanted to say all that but I was too lazy to type..
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      05-14-2018, 10:25 PM   #12
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Quote:
Originally Posted by Poochie View Post
They do pay without much effort and there're much more lenient than the manufacturers' s warranty; you can have a full tune and down pipe and they'll still cover it, even if the dealer denies the repair for some bs.. Only catch is there is a $250 deductible for each repair or only $100 if you still have the manufactures warranty in effect..

boss2k
That's too good to be true specially from an insurance company like Geico, I have heard horror stories for regular claim payouts for bodywork repairs and top of this kind of coverage, no way. Which other insurance companies provides these type of coverage?
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      05-14-2018, 10:36 PM   #13
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Quote:
Originally Posted by boss2k View Post
Quote:
Originally Posted by Poochie View Post
They do pay without much effort and there're much more lenient than the manufacturers' s warranty; you can have a full tune and down pipe and they'll still cover it, even if the dealer denies the repair for some bs.. Only catch is there is a $250 deductible for each repair or only $100 if you still have the manufactures warranty in effect..

boss2k
That's too good to be true specially from an insurance company like Geico, I have heard horror stories for regular claim payouts for bodywork repairs and top of this kind of coverage, no way. Which other insurance companies provides these type of coverage?
I understand that you're skeptical; all insurance companies sucks, in general, I could personally write a book on my grievances. However, you could Google the subject and you'll see a lot of positive feedback on this particular add on.

How it works is when take the car to the repair shop or dealer, they call the claims department and submit the information. They are then given a one time generated credit card number to cover the repair minus the deductible.

Sorry, but as far as I know, there isn't any other major insurance company that offers this "rider" add on. Maybe someone else could chime in if they know any others..
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      05-14-2018, 11:02 PM   #14
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So you are saying for 200 bucks the insurance company is providing extended coverage on a BMW that costs around 3-4k in market, how is the Insurance company making money? Even if u don't file a claim they are making 200 bucks for a risk of thousands of dollars if there is a claim? How is that possible?
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      05-14-2018, 11:17 PM   #15
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I was on the phone with Geico insuring a new car and as they were reviewing my policy they told me I had this coverage on my M3. I was so confused why I would have warranty insurance when I already have the BMW warranty (my car is leased) so I had them remove it, as small as it was. Now reading this I am regretting it just in case I buy out my car. Seems way too cheap to cover a car with such expensive parts. Especially since I drive 15-17k a year. Is there a mileage cap on it?
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      05-14-2018, 11:32 PM   #16
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Quote:
Originally Posted by boss2k View Post
So you are saying for 200 bucks the insurance company is providing extended coverage on a BMW that costs around 3-4k in market, how is the Insurance company making money? Even if u don't file a claim they are making 200 bucks for a risk of thousands of dollars if there is a claim? How is that possible?
Robby Mack above outlined why it's that cheap..

All cars that have the coverage, the risk pool is spread across everyone, so the cost is subsidize. All I could say it's not a scam but the price the does slightly increase, as the car ages..

Why I love and keep it, even though I still have a factory warranty; they don't sweat the bs the dealers might hesitate to cover because of mods, so it's a back up really.

When Geico first offered it, the coverage was 7 years and Unlimited miles but now they limit it to 7/100k.

*They cover the clutch replacement also, if applicable*

https://www.geico.com/auto-insurance...own-insurance/

https://www.bogleheads.org/forum/viewtopic.php?t=197760

https://www.thetruthaboutinsurance.c...urance-review/

https://www.valuepenguin.com/car-ins...hould-i-get-it
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      05-15-2018, 01:51 AM   #17
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They told me this coverage also covers 50 dollar glass deductible (i.e. if you crack your windshield from a rock) you only pay 50 bucks. I couldn't find that written anywhere and was skeptical. Can anyone confirm?
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      05-15-2018, 02:36 AM   #18
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Quote:
Originally Posted by paliknight View Post
They told me this coverage also covers 50 dollar glass deductible (i.e. if you crack your windshield from a rock) you only pay 50 bucks. I couldn't find that written anywhere and was skeptical. Can anyone confirm?
You're mixing up the two; MBI or Mechanical Breakdown Insurance is a separate coverage from glass repair.

If you look at your auto policy's 'declaration page'; it's going list 'Comprehensive' - under that you'll see your deductible for glass coverage. It is possible it might only be only $50 per repair. However, it has absolutely no relation to MBI.
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      05-15-2018, 08:29 AM   #19
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Wow - I love this forum

I just called Geico and added MBI to my coverage. It costs $50 for 6 months and carries a $250 deductible. The only items not covered are wear and tear (tires, pads, rotors) - unless there are issues with them.

The kicker is - I can take the car to any mechanic and use their estimate.

The blurry line is: will damage caused by aftermarket tunes be covered? If so, then I'm chipping my car!
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      05-15-2018, 09:27 AM   #20
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From what I understand, modifications to the car won't matter. If the mod breaks, they won't cover the mod. If the engine fails DUE to the mod, they will cover the original engine parts.

Also, the premium will slightly increase throughout the policy. It won't stay static at the low price you're getting now. The total cost will probably be ~$1,500 over 7 years which is still worth it in my opinion.

To those being skeptical, keep in mind that Geico insures all types of cars, not just expensive luxury cars. All those reliable Hondas, Toyotas, etc are subsidizing your price.
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      05-15-2018, 09:33 AM   #21
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For $2.50 a month, honestly it's silly to even discuss pricing. You can go under your seat and find change that amount to $2.50 lol. .. I read the entire policy and there doesn't seem to be a catch, besides the 15k miles, new car etc..
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      05-15-2018, 09:36 AM   #22
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It also lowered my glass deductible to $50. I've gotten multiple front windshields replaced from cracks and chips for $50 each using OEM glass.

Last edited by alex2364; 05-15-2018 at 10:02 AM.
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