Geico MBI (Mechanical Breakdown Insurance)

[gunbunnysoulja]

Anyone here have MBI on their insurance policy? I'm thinking about adding it and was curious if anyone here filed a claim through them before. I was planning on going through Ford ESP but this is so cheap, as it's an extra $6/month for bumper-to-bumper, and good up to 7 years, 100k miles. $250/deductible. Eligible vehicles to add MBI are new cars, less than 15 months old and under 15k miles.

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[daltron]

Yeah, it does look pretty good, I was wondering the same.

 

[gunbunnysoulja]

I'll most likely add it to my policy before I hit 15k miles. The price is the same whether you have 0 miles or 15k miles, so might as well save a few bucks and wait to add it. I verified with Geico the MBI price from 0-15k won't change. The only potential for premium price increases is as the vehicle ages (which was a concern of mine), but they wouldn't tell me what percentage/amount it will go up as I renew the policy across the years. @ $6/month it seems like a steal, so I assume it will probably go up a few dollars a month as it ages.

 

[Zemedici]

I had it on my 15. For the $7/month it cost me it was worth a shot. Although I cannot see it covering many things ford would not for the first 3/36.

 

[gunbunnysoulja]

I had it on my 15. For the $7/month it cost me it was worth a shot. Although I cannot see it covering many things ford would not for the first 3/36.

Agreed.. I personally consider it almost worthless for the 3/36, since you need to utilize factory first... But since my AC system went at 8k miles, and every single AC component needed to be replaced, if it goes at 37k, I'd need something additional haha.. MBI would come in handy then lol

 

[Sheenapple]

@HTX

 

[bscn8c]

A couple of reasons why it is so cheap:

1. MBI is sold by insurance companies, so prices are highly regulated by state to avoid excessive prices. VSC are a product of a dealership or even an admin company that backs the dealership. VSC prices are not regulated by most states, so dealers will usually charge twice the actual value of the contract, then add at least $1000 in markups for extra prifit.

2. Also, it looks to be renewable. My unconfirmed guess would be that the price is so low now since there will be so few MBI claims due to the OEM warranty acting as primary coverage. However, I would assume the price to jump quite a bit as you renew and get closer to the 7 yr/100k mile threshold (since you have a much higher chance of a breakdown as the car gains mileage). I would suggest calling the insurer and asking if that is the case.

At that price, if renewed through the full 7 years, is about $504. That's a fair price for this coverage. But if prices increase over time, it may not be (though still cheaper than a VSC).

 

[gunbunnysoulja]

I would assume the price to jump quite a bit as you renew and get closer to the 7 yr/100k mile threshold (since you have a much higher chance of a breakdown as the car gains mileage). I would suggest calling the insurer and asking if that is the case.

The price will definitely go up as the car ages, but they wouldn't give me an amount or percentage. I said that the MBI is basically useless to me now, and by paying for something I won't use for a few years, I wouldn't want to get locked in by being forced to pay MUCH higher premiums down the road..

If I start the policy @ 15k miles, I drive around 20k miles a year... So after year 1, I'm already at 35k miles. $70 investment will be wasted since year 1 is covered by factory, but anything after that is likely a benefit and could use it as soon as year 2...

With a $250 deductible, I hope that keeps premiums low, since many other policies are either no ded (like ESP) or some 3rd party ones are typically $100.

 

[Herculesx99]

Just got off the phone with Geico. They will not honor the warranty if the vehicle has any after market upgrades that were not installed by the dealer and the engine fails. It was put to me in broad terms. Probably not a good idea to count on MBI to back any tunes or mods

 

[el-guapin]

How much you paid for it? You can cancel the contract. You will get a prorated amount.

 

[Herculesx99]

I was only considering it due to this old thread, which I only just realized is old

 

[Bybcous]

Just got off the phone with Geico. They will not honor the warranty if the vehicle has any after market upgrades that were not installed by the dealer and the engine fails. It was put to me in broad terms. Probably not a good idea to count on MBI to back any tunes or mods

Not to be shady but i got it so after my factory warranty expires i can take it to any shop and they wont know if a tune/etc is on the car.

 

[Herculesx99]

So only the dealers can or will check for a tune?

 

[Bybcous]

So only the dealers can or will check for a tune?

Regular shops wouldnt care what tune I have on the car, they job is to just to fix it and if geico wouldnt know a ford tune from a whoever tune, I can day it was reflashed for a ecu update by ford if I really need too but I dou t it will ever have too.

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