just purchased a new car and said no to the extended warranty...when i called up GEICO to add the car to my insurance, they mentioned adding MBI for ~$8/month, has a $250 deductible, and it's renewable up to 7 years or 100k miles

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

i said no, but asked how long i have to decide (3 months or 30k miles from purchase date)...over the lifetime (more likely the 7 years), it'll cost about $700...about $250-300 of that will overlap the manufacturer's warranty (though i was told the MBI covers more, but i haven't verified it)

just wanted to see how y'all feel about it...worth it? waste of money? it's a break-even option if i ever have a single repair that cost $950 after the deductible...but i don't expect to have that any time soon

8/25/2014 3:34:46 PM

most of your repair bills are going to be for maintenance and wear and tear, items that are excluded from this

Quote :

"*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."

maybe i've just had good luck with cars, but I've never had to do any more than regular maintenance over the first 100k miles

IMO it's not worth it

8/25/2014 3:43:21 PM

Quote :

"maybe i've just had good luck with cars, but I've never had to do any more than regular maintenance over the first 100k miles"

same for me

8/25/2014 4:02:08 PM

Insure what you can't afford to chance.

Statistically, you are going to lose money. That's why insurance (to include warranties) is a business, not a charity.

8/25/2014 4:32:13 PM

^ I dunno...I do pretty good on my health insurance

8/25/2014 4:39:55 PM

That's because health insurance isn't really insurance. But that is a thread derailer

8/25/2014 4:44:30 PM

^^ is it subsidized by, say, your employer?

8/25/2014 4:49:14 PM

Haha, even if my health insurance wasn't subsidized by my employer I'm still way, way ahead of the game there. $60k+ in surgeries over the last 6 years

quagmire02, I would maybe consider MBI if I were purchasing a used car. A brand new one? Not a chance.

8/26/2014 9:18:51 AM

Not gonna lie, I would take it at $8/mo and I generally work on my own vehicles. I'd say it depends what kind of new car it is and pricing really. $45k BMW? Of course. $17k Honda? Borderline for me personally. Any premature bearing failure, CV joints, catastrophic transmission/engine failure covered for essentially $750/7 yrs even with deductible isn't much price to pay even when excluding normal maintenance items. I'd just make sure to follow the terms shown pretty closely especially when it comes to "normal maintenance" and keeping those records handy. My company buys non-fleet commercial vehicles for company use and it's amazing how many of these new cars experience bearing or transmission failures in the first 50-75k, and I'm talking Ford/GMC/Honda trucks/SUVs/cars across the board.
One other thing, I see you said the term ends in 7yrs, is there a mileage limit as well?

8/26/2014 10:33:16 AM