Introduction:

GEICO, one of the top insurance providers in the United States, offers a variety of insurance policies to protect you and your vehicle. Among these policies is the Mechanical Breakdown Insurance (MBI), which covers the repair costs for mechanical issues that occur after your manufacturer’s warranty has expired. In this article, we’ll discuss the ins and outs of GEICO’s MBI policy to help you determine if it’s right for you.

What is Mechanical Breakdown Insurance?

Mechanical Breakdown Insurance (MBI) is a policy dedicated to covering repair costs for parts that fail or wear out over time. These can include engines, transmissions, electrical systems, air conditioning units, and more. Unlike standard auto insurance that only handles collisions, MBI addresses issues that arise from everyday usage and normal wear and tear of your vehicle.

Benefits of GEICO’s Mechanical Breakdown Insurance:

1. Comprehensive Coverage: GEICO’s MBI covers major components like engine parts, transmission systems, suspension systems, air conditioning units, and electrical components. This comprehensive coverage protects you from unplanned repair costs when your vehicle experiences mechanical issues.

2. Cost Savings: The cost of MBI premiums is often significantly lower than paying for large repairs out-of-pocket or opting for extended warranties.

3. No Mileage Limitations: Unlike many extended warranty programs that limit coverage based on mileage, GEICO’s MBI continues to cover your vehicle regardless of how many miles you’ve driven.

4. Transferable Policy: If you decide to sell your car while it still benefits from MBI coverage, the policy can be transferred to the new owner, potentially increasing resale value.

5. Option to Renew: As long as your vehicle meets eligibility requirements, you may renew your MBI policy with GEICO up to 7 years or 100,000 miles.

Limitations of GEICO’s Mechanical Breakdown Insurance:

1. Eligibility: MBI is available only for new vehicles or used vehicles still under their original manufacturer’s warranty. Vehicles more than 15 months old or with more than 15,000 miles are not eligible for GEICO’s MBI.

2. Deductibles: For each repair claim, you are required to pay a $250 deductible before the coverage kicks in.

3. Exclusions: GEICO’s MBI does not cover routine maintenance, wear and tear items like brake pads and tires, or damage caused by accidents or incidents that are covered under auto insurance policies.

4. Policy Cancellation: Filing multiple claims in a short period may lead GEICO to cancel your MBI policy without the option to renew it.

Conclusion:

GEICO Mechanical Breakdown Insurance offers comprehensive protection for your vehicle’s mechanical components at an affordable price. The policy can save you money on repairs and potentially increase your car’s resale value. However, it’s essential to consider eligibility restrictions, deductibles, and exclusions before deciding if MBI is the right fit for your needs.