Geico MBI vs EXtend warranty
07-01-2015, 08:07 PM
#1
Member
Thread Starter
Geico MBI vs EXtend warranty
Currently only have 1800 miles on my 2015 CLS, after three months of ownership, so this is for research. But I do plan on keeping the car 5 years or longer. I read much about the expensive repairs on these cars. I am worried about warranty coverage for the car if it needs repairs. I did not opt to take any from dealership. But I am a Geico policy holder and it is only $6.00 a month for mechanical breakdowns insurance coverage. I can wait until the 15 month or 15,00 miles before I have to opt in to coverage. Two points I like the most I can keep it until the car reaches 7 years or 100,000 miles. And the fact that you don't have to pay upfront for coverage in case I do not keep the car. Looking for any thoughs pro or con or if anyone has experience with Geico MBI.
03-26-2016, 12:02 PM
#2
Member
I am also looking at this option and have till Mar '17 to decide.
As this product has been around for some time, I am wondering why none here (or for that matter many other forums) haven't shared their experience when this reaches the "usable time period" i.e. past the expiration of factory warranty.
Another concern I have is regarding the cost. One thing is for sure that you are not going to pay the initial premium for all 7 years...thus relying on initial premium to calculate the total cost of the coverage is erroneous. At one place I was told, premium may jump as much as 40-50% for 5th-7th year...time when this contract becomes a liability for the issuer [Some long term user, please verify]. If true, the cost comparison with other options is difficult at a time when you need to commit to this option.
As this product has been around for some time, I am wondering why none here (or for that matter many other forums) haven't shared their experience when this reaches the "usable time period" i.e. past the expiration of factory warranty.
Another concern I have is regarding the cost. One thing is for sure that you are not going to pay the initial premium for all 7 years...thus relying on initial premium to calculate the total cost of the coverage is erroneous. At one place I was told, premium may jump as much as 40-50% for 5th-7th year...time when this contract becomes a liability for the issuer [Some long term user, please verify]. If true, the cost comparison with other options is difficult at a time when you need to commit to this option.
Last edited by TheSpooky; 03-29-2016 at 07:36 AM.
03-26-2016, 12:16 PM
#4
I own an auto glass business. From first hand experience, GEICO is one of the hardest companies to get to pay a claim (only second to Progressive).
Be sure to carefully read (maybe with a lawyer!) the terms of this policy. There will be loopholes that will allow them to weasel out of paying for anything meaningful.
Be sure to carefully read (maybe with a lawyer!) the terms of this policy. There will be loopholes that will allow them to weasel out of paying for anything meaningful.
03-26-2016, 02:26 PM
#5
Member
Actually for me it is ~ 15$/month to start with...but...it doesn't stay at this price for the rest of 6 years. How much will it go up (Per CS Rep at GEICO...it depends on how the model performs going forward...if lots of issues...than it will go up a lot (may be)...)... so the real cost of this coverage remains elusive...
03-28-2016, 11:35 PM
#6
Member
Thread Starter
Actually for me it is ~ 15$/month to start with...but...it doesn't stay at this price for the rest of 6 years. How much will it go up (Per CS Rep at GEICO...it depends on how the model performs going forward...if lots of issues...than it will go up a lot (may be)...)... so the real cost of this coverage remains elusive...
Add for only $63.40 per 6 months.
That is $10.56 a month, now say no increase for the first year. I've paid 126.80 at 27 month and can keep that policy for another 48 months. Even with a 10% increase for the next six months renewal, I'd only be at $69.96 or 139.92 a year. There is no way in the next few year my premium will increase so dramatically to exceed what most extended warranty cost on these cars.. Geico has been my insurance company for years. We've filed for a total lost and four other claim for vehicle damages. I have never had an issue with them covering my claim's promptly and to my satisfaction and my premium are still going down yearly. My MB with full coverage 300/100/300 is only $506/6 mo. I only see the $250 deductible per claim adding to my cost. With there low cost premium and the type of car I have and cost of repair for this car this coverage is worth much more than I will pay. And if I do decide to trade the car I will only have paid for the time I had the car, maybe a few hundred bucks verse $3k or $4k. in a upfront extended warranty.
Last edited by longslim; 03-28-2016 at 11:37 PM.
04-21-2016, 02:52 PM
#7
That is a concern, but I can't see my premium escalation being that great. I have until July 5 to get the coverage started and only have 7975 miles on my car. If I add it today this was GEICO quote: Mechanical Breakdown Insurance ?
Add for only $63.40 per 6 months.
That is $10.56 a month, now say no increase for the first year. I've paid 126.80 at 27 month and can keep that policy for another 48 months. Even with a 10% increase for the next six months renewal, I'd only be at $69.96 or 139.92 a year. There is no way in the next few year my premium will increase so dramatically to exceed what most extended warranty cost on these cars.. Geico has been my insurance company for years. We've filed for a total lost and four other claim for vehicle damages. I have never had an issue with them covering my claim's promptly and to my satisfaction and my premium are still going down yearly. My MB with full coverage 300/100/300 is only $506/6 mo. I only see the $250 deductible per claim adding to my cost. With there low cost premium and the type of car I have and cost of repair for this car this coverage is worth much more than I will pay. And if I do decide to trade the car I will only have paid for the time I had the car, maybe a few hundred bucks verse $3k or $4k. in a upfront extended warranty.
Add for only $63.40 per 6 months.
That is $10.56 a month, now say no increase for the first year. I've paid 126.80 at 27 month and can keep that policy for another 48 months. Even with a 10% increase for the next six months renewal, I'd only be at $69.96 or 139.92 a year. There is no way in the next few year my premium will increase so dramatically to exceed what most extended warranty cost on these cars.. Geico has been my insurance company for years. We've filed for a total lost and four other claim for vehicle damages. I have never had an issue with them covering my claim's promptly and to my satisfaction and my premium are still going down yearly. My MB with full coverage 300/100/300 is only $506/6 mo. I only see the $250 deductible per claim adding to my cost. With there low cost premium and the type of car I have and cost of repair for this car this coverage is worth much more than I will pay. And if I do decide to trade the car I will only have paid for the time I had the car, maybe a few hundred bucks verse $3k or $4k. in a upfront extended warranty.
