GEICO's Mechanical Breakdown Insurance vs. BMW Warranty Extension

Rando · 08-31-2010, 12:49 AM

GEICO seems to have a nice program called "Mechanical Breakdown Insurance" (MBI):
http://www.geico.com/getaquote/auto/...breakdown-faq/

It's good for 7 years and 100,000 miles, which seems like a win for someone liek me who racks up miles faster than years.

Also, you can get the car repaired anywhere, not just at a BMW dealer. This seems like a nice plus because there are quite a few inept dealers out there, unfortunately.

Has anyone submitted a claim through MBI? Any thoughts or advice on this? Seems like this would save the whole hassle of extended warranty research...

Thanks!

John 070 · 08-31-2010, 04:17 AM

If they don't use OEM parts for accident repairs, but used and aftermarket, it would be surprising to find they would have a different business model for their extended warranty and use more costly OEM parts for repairs. my .02. Everyone wants to try to beat the price of a BMW extended warranty, but sometimes it's just one of those things, like premium fuel. Yes, you pay more, but not so much more that it would ding your wallet. I did the comparison, aftermarket warranties save $500-$700 at most. Not nothing, but at least you have something with the BMW warranty where it becomes part of the vehicle history, not some piece of paper in your glovebox where it's a guessing game on obtaining reimbursement for repairs.

Want to save money? Ask the dealership to discount the BMW warranty. There's $350 saved, and now the gap is $150 to $350 between the aftermarket and the BMW warranty.

Rando · 08-31-2010, 09:24 AM

Well, they allow you to get your car repaired where you choose, so if you go to a BMW dealer, that'll be OEM parts, no?

I'd love to hear from someone who actually has MBI and has tried it, rather than theoretical arguments... (Though I appreciate the points John_070 made.)

Professor///M · 08-31-2010, 10:01 AM

"You get what you pay for"... enough said.

I was able to negotiate down the price of the extended warranty by nearly $1000 at the dealership, so it's always worth sitting down with someone and negotiating.

It's always cost/benefit... High cost of the warranty program vs risk of never using it; versus risk of needing $$$ repairs vs not paying for the warranty up front.

It all depends on which risk you're willing to take. I plan on putting lots of mileage on mine, so I opted for the BMW warranty, and declined the expensive service extension.

Rando · 08-31-2010, 10:19 AM

PAMridge: thank you but you're not really addressing my question... I'm not asking about extending versus not extending...

I'm asking about GEICO's MBI program... It does sound too good to be true.

(And now I will do some Google searches in the hope of finding more info...)

Also hoping someone here will chime in with some real-world experience.

Rando · 08-31-2010, 11:17 AM

Okay, so here is what I've gathered so far, just FYI:

- This covers everything in your car (yes, including the thermostat)
- Wear-and-tear items are of course not included (like tires)
- There is a $250 deductible per issue
- It's good for 7 years/100,000 miles
- You can specify the repair shop of your choice

Not sure yet about OEM parts for repairs...

But so far it's sounding good, and I might actually keep it instead of ponying up for the $3K+ BMW extended warranty.

Sh0cker · 08-31-2010, 11:37 AM

Keep in mind you have to add this option in the first year you own the car. Then you pay until your factory warranty runs out, that is your "purchase price" basically. I added it in the 12th month so I could pay the minimum amount and it comes out less than the dealers'.

I'm doing it but I'm still in the factory warranty so I have no experience with claims.

There is also discussion in THIS THREAD.

John 070 · 09-01-2010, 03:34 AM

Quote:

Originally Posted by Rando

Well, they allow you to get your car repaired where you choose, so if you go to a BMW dealer, that'll be OEM parts, no?

I'd love to hear from someone who actually has MBI and has tried it, rather than theoretical arguments... (Though I appreciate the points John_070 made.)

Asking the BMW dealership to discount the BMW extended warranty is not theoretical. I did, they discounted the warranty, and am covered to 2013.

Kruz · 09-01-2010, 01:18 PM

John 070....I see your savings, but what was your actual cost for the BMW warranty and which one did you get...? Gold, Platinum, etc.

xquizitdjx · 09-08-2010, 03:23 PM

I just bought a 07 WITH 50K miles and doing research on what extended coverage to get. I hope we get more to chime in.

E92-Lighting · 09-08-2010, 04:01 PM

maybe no one tried their service yet

RaPiDneSs · 09-08-2010, 06:24 PM

same here still waiting on some more advice...i just bought an e90 with 40k.. my dealer offeres extended for 2500k i think ill try to see if they lower it

Drivaar · 09-17-2010, 10:24 AM

But do you want to pay $3,500 for the BMW extended warranty on a car that is probably worth around $20,000 now???

Chriztofor · 09-17-2010, 10:40 AM

Quote:

Originally Posted by E92-Lighting

maybe no one tried their service yet

Bingo, and that is why they offer the warranty. PROFIT.

luv135i · 09-17-2010, 12:02 PM

Theres a lot of people that have used it and are happy with results, just not here on the forum. Search the internet. Theres a lot of reviews out there.

Rando · 09-18-2010, 09:18 AM

Hi folks,

So I called GEICO and got the full scoop on the MBI.

It really sounds very good... so good that I'm going to go with it. (Makes me suspicious! Will have to wait until a repair to know if there is some weird catch.) I suppose they can offer it at such a good price because they have a much higher volume to spread the risk across than any individual car manufacturer. (Just like health insurance is cheaper and better when you are in a big company versus being an individual.)

Plusses

+ It covers EVERYTHING (except wear-and-tear items), including navigation systems, lights, radio, etc! That's a big catch on many manufacturer extended warranties...

+ You can specify your body shop of choice, even a dealer. You just pay the first $250 and GEICO pays the rest.

+ They will use OEM parts, or if you prefer an aftermarket part, they will do that too

+ They will pay up to $25/day for a loaner if you need one due to parts being shipped, or a delay on GEICO's part.

+ It's good for 7 years/100,000 miles

+ Cost is WAAAAAAAAAY lower than a BMW extended warranty.

Minuses:

- $250 deductible per unrelated incident (so if your engine and brakes both fail, that's $500 deducted)

- You must add it to the car within its first 15,000 miles.

- You must be the first owner of the car.

All in all, a slam dunk, especially versus the insulting dealer warranties of like $3,500 on a car that is probably worth $20K in the first place, as Drivaar said.

This should help clarify for folks who have GEICO.

Chriztofor · 09-18-2010, 10:42 AM

Quote:

Originally Posted by User Name

Keep in mind you have to add this option in the first year you own the car. Then you pay until your factory warranty runs out, that is your "purchase price" basically. I added it in the 12th month so I could pay the minimum amount and it comes out less than the dealers'.

I'm doing it but I'm still in the factory warranty so I have no experience with claims.

There is also discussion in THIS THREAD.

So it is not a TRUE 7 year 100,000 mile warranty.

John 070 · 09-18-2010, 11:39 AM

Quote:

Originally Posted by Rando

Hi folks,

So I called GEICO and got the full scoop on the MBI.

It really sounds very good... so good that I'm going to go with it. (Makes me suspicious! Will have to wait until a repair to know if there is some weird catch.) I suppose they can offer it at such a good price because they have a much higher volume to spread the risk across than any individual car manufacturer. (Just like health insurance is cheaper and better when you are in a big company versus being an individual.)

Plusses

+ It covers EVERYTHING (except wear-and-tear items), including navigation systems, lights, radio, etc! That's a big catch on many manufacturer extended warranties...

+ You can specify your body shop of choice, even a dealer. You just pay the first $250 and GEICO pays the rest.

+ They will use OEM parts, or if you prefer an aftermarket part, they will do that too

+ They will pay up to $25/day for a loaner if you need one due to parts being shipped, or a delay on GEICO's part.

+ It's good for 7 years/100,000 miles

+ Cost is WAAAAAAAAAY lower than a BMW extended warranty.

Minuses:

- $250 deductible per unrelated incident (so if your engine and brakes both fail, that's $500 deducted)

- You must add it to the car within its first 15,000 miles.

- You must be the first owner of the car.

All in all, a slam dunk, especially versus the insulting dealer warranties of like $3,500 on a car that is probably worth $20K in the first place, as Drivaar said.

This should help clarify for folks who have GEICO.

BMW extended warranty is negotiable as far as the price goes, I don't know it's as if all these warranty comparisons assume it's not.

GEICO is just one of those things, it seems to teach people that you don't have to pay for what you get. You can get the same and pay less. Really? They don't use OEM for their repairs in accidents, WTF would they want to use OEM in mechanical repairs? They actually specify used parts as well on their estimates....on a 2k10 BMW no less (friend's experience).

Nowadays, who wants to pay for something today, that doesn't take effect until 4 years from now? And a $250 deductible? That's nonsense. And even BMW doesn't require you anymore, to be the original owner when they sell their extended warranties.

Obviously, I went BMW Gold. I like that any dealership can read my key and see that I'm covered. I could have saved about $200 by going with a 3rd party (due to the negotiated price of the BMW) but I'd rather pay $200 more I guess.

But such is life--those who are not risk-averse (go 3rd party) are potentially going to save $$$. And on something like a Toyota or Honda where the warranty never is used, non risk-averse people will save huge. But BMWs break....

hl0m4n · 09-18-2010, 01:08 PM

imo don't be fooled with all these warranty extensions bs. 100,000 miles if maintained correctly is 200% no problem to get to without problems.

all warren buffet cares about is cash and being an insurance company, pay out the least amount. so what does he do with your cash? invest it and make more

.

i think people way overthink extended warranties. i mean the 7 years really doesn't matter but if you should without a problem make it to 100k miles no problem with proper maintanence. its all mental

.

Rando · 09-18-2010, 01:18 PM

John_070: What did you pay for the BMW extension? I'm curious... You keep hinting that it was very little, but it would have to be far below $3,600 or even $3,200 for it to make sense on a $20K car, in my opinion.

Also, GEICO does give you the option of OEM parts... I do agree that pretty much all insurance companies will try to slip in non-OEM, so it's probably best to check the repair parts list. But they do state that they will cover OEM parts.

Unfortunately for me, my last car I had the BMW extended warranty and they stiff me because a headlight SENSOR was malfunctioning, and apparently that subsystem was not covered by the extended warranty. Same with the radio -- not covered.

The MBI from GEICO does make you pay from before 15,000 miles, but the premium is very low, so it doesn't add up to a whole lot.

Just making sure the facts are out there... I will certainly report back after I have a claim, so people know whether GEICO actually delivers on the promises.

I also agree with hl0m4n that probably no major issues will come up. But with the N54, I am not so sure...

hl0m4n · 09-18-2010, 01:42 PM

n54 or n55 there should be no issues. 100k miles for todays car is nothing, it just made it to its teens. after 100k miles you are really in the dark but thats when your extended warranty expires anway.

and plus the only major thing on the n54 is the fuel pump which bmw already has the extended warranty for i believe it was 120k miles.

when i had my 07 335i i drove the hell out of it, maintained it very well, and at 46k miles was still on my original fuel pump no problems, etc.

trust me extended maintainence is all hype and just an extra way to make money. all a mind game. treat the car good and it will treat you back.

Rando · 09-18-2010, 01:53 PM

hl0m4n: I mostly agree, except I had a number of engine malfunctions... some due to HPFP and some due to other issues... (And HPFP is not a worry due to the warranty extension by BMW.)

But I do agree the maintenance extension is all hype.

And I do agree that if you treat the car well, it's likely to treat you well back. I know I haven't revved the 335i nearly as much as my old 330i because it just doesn't need it! The 330i I would rev to redline pretty often... 335i is great and pretty much done with whatever you needed from it by 5000 rpm anyway.

08-31-2010, 12:49 AM	#1
Rando Lieutenant 52 Rep 487 Posts Drives: BMW Join Date: Mar 2007 Location: CA iTrader: (0)	GEICO's Mechanical Breakdown Insurance vs. BMW Warranty Extension GEICO seems to have a nice program called "Mechanical Breakdown Insurance" (MBI): http://www.geico.com/getaquote/auto/...breakdown-faq/ It's good for 7 years and 100,000 miles, which seems like a win for someone liek me who racks up miles faster than years. Also, you can get the car repaired anywhere, not just at a BMW dealer. This seems like a nice plus because there are quite a few inept dealers out there, unfortunately. Has anyone submitted a claim through MBI? Any thoughts or advice on this? Seems like this would save the whole hassle of extended warranty research... Thanks!
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08-31-2010, 04:17 AM	#2
John 070 Lieutenant General 1705 Rep 14,829 Posts Drives: 335i cpe Join Date: Oct 2006 Location: ZSP/ZPP/ZCW iTrader: (0)	If they don't use OEM parts for accident repairs, but used and aftermarket, it would be surprising to find they would have a different business model for their extended warranty and use more costly OEM parts for repairs. my .02. Everyone wants to try to beat the price of a BMW extended warranty, but sometimes it's just one of those things, like premium fuel. Yes, you pay more, but not so much more that it would ding your wallet. I did the comparison, aftermarket warranties save $500-$700 at most. Not nothing, but at least you have something with the BMW warranty where it becomes part of the vehicle history, not some piece of paper in your glovebox where it's a guessing game on obtaining reimbursement for repairs. Want to save money? Ask the dealership to discount the BMW warranty. There's $350 saved, and now the gap is $150 to $350 between the aftermarket and the BMW warranty.
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08-31-2010, 09:24 AM	#3
Rando Lieutenant 52 Rep 487 Posts Drives: BMW Join Date: Mar 2007 Location: CA iTrader: (0)	Well, they allow you to get your car repaired where you choose, so if you go to a BMW dealer, that'll be OEM parts, no? I'd love to hear from someone who actually has MBI and has tried it, rather than theoretical arguments... (Though I appreciate the points John_070 made.)
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08-31-2010, 10:01 AM	#4
Professor///M Brigadier General 819 Rep 3,341 Posts Drives: 2022 M3, 2022 X5 40i; Join Date: May 2007 Location: Northeast iTrader: (5) Garage List 2022 BMW M3 Comp. [0.00] 2016 BMW X5 35i [10.00]	"You get what you pay for"... enough said. I was able to negotiate down the price of the extended warranty by nearly $1000 at the dealership, so it's always worth sitting down with someone and negotiating. It's always cost/benefit... High cost of the warranty program vs risk of never using it; versus risk of needing $$$ repairs vs not paying for the warranty up front. It all depends on which risk you're willing to take. I plan on putting lots of mileage on mine, so I opted for the BMW warranty, and declined the expensive service extension.
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08-31-2010, 10:19 AM	#5
Rando Lieutenant 52 Rep 487 Posts Drives: BMW Join Date: Mar 2007 Location: CA iTrader: (0)	PAMridge: thank you but you're not really addressing my question... I'm not asking about extending versus not extending... I'm asking about GEICO's MBI program... It does sound too good to be true. (And now I will do some Google searches in the hope of finding more info...) Also hoping someone here will chime in with some real-world experience.
	Appreciate 0 Quote

08-31-2010, 11:17 AM	#6
Rando Lieutenant 52 Rep 487 Posts Drives: BMW Join Date: Mar 2007 Location: CA iTrader: (0)	Okay, so here is what I've gathered so far, just FYI: - This covers everything in your car (yes, including the thermostat) - Wear-and-tear items are of course not included (like tires) - There is a $250 deductible per issue - It's good for 7 years/100,000 miles - You can specify the repair shop of your choice Not sure yet about OEM parts for repairs... But so far it's sounding good, and I might actually keep it instead of ponying up for the $3K+ BMW extended warranty.
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08-31-2010, 11:37 AM	#7
Sh0cker n00b 5 Rep 178 Posts Drives: 335i Join Date: Jul 2008 Location: NJ iTrader: (9)	Keep in mind you have to add this option in the first year you own the car. Then you pay until your factory warranty runs out, that is your "purchase price" basically. I added it in the 12th month so I could pay the minimum amount and it comes out less than the dealers'. I'm doing it but I'm still in the factory warranty so I have no experience with claims. There is also discussion in THIS THREAD. __________________ His: 08 E92 335i (sold), 99 Corolla beater car Hers: 09 Tiguan Previous: 09 e93 328i, 04 WRX, 07 S40, 03 E46 330xi, 04 F4i, 04 EX250
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09-01-2010, 01:18 PM	#9
Kruz Major 22 Rep 1,083 Posts Drives: 2021 M2C 6MT Join Date: Jun 2007 Location: Chicagoland iTrader: (4) Garage List My garage spot [0.00] 07/07 BMW 335xi [8.50] 2001 Honda CBR600F4i [0.00] 2007 Husqvarna SM610 [0.00] 2004 Chevy Tahoe Z71 [0.00] 2005 Harley Davidso ... [0.00] 2007.9 335xi [6.50]	John 070....I see your savings, but what was your actual cost for the BMW warranty and which one did you get...? Gold, Platinum, etc. __________________ 2021 BMW M2 Competition, BSM, Exec Pkg, 6MT GONE:07/07 E90 335xi SG Black Dakota\|Alum\|ZSP\|2AB\|ZPP\|ZCW\|Nav\|CA\|6FL\|PDC\| Blacklines\|3M Summers: 235/40/18 265/35/18 Hankook Ventus V12 on VMR 701s A/S: 225/40/18 255/35/18 Pirelli PZero Nero M+S on OEM 162s
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09-08-2010, 03:23 PM	#10
xquizitdjx Private First Class 14 Rep 112 Posts Drives: 335i Join Date: Sep 2010 Location: Central Florida iTrader: (0)	I just bought a 07 WITH 50K miles and doing research on what extended coverage to get. I hope we get more to chime in.
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09-08-2010, 04:01 PM	#11
E92-Lighting 860 Rep 35,253 Posts Drives: Next Generation LED Lighting Join Date: May 2008 Location: Walnut iTrader: (324)	maybe no one tried their service yet
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09-08-2010, 06:24 PM	#12
RaPiDneSs Private First Class 4 Rep 153 Posts Drives: E90 328i Join Date: Aug 2010 Location: Stockton, CA iTrader: (0)	same here still waiting on some more advice...i just bought an e90 with 40k.. my dealer offeres extended for 2500k i think ill try to see if they lower it
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09-17-2010, 10:24 AM	#13
Drivaar Lieutenant 73 Rep 463 Posts Drives: BMW Join Date: Aug 2010 Location: Earth iTrader: (0)	But do you want to pay $3,500 for the BMW extended warranty on a car that is probably worth around $20,000 now???
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09-17-2010, 12:02 PM	#15
luv135i Major 60 Rep 1,073 Posts Drives: White Join Date: Nov 2009 Location: GA iTrader: (0)	Theres a lot of people that have used it and are happy with results, just not here on the forum. Search the internet. Theres a lot of reviews out there.
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09-18-2010, 09:18 AM	#16
Rando Lieutenant 52 Rep 487 Posts Drives: BMW Join Date: Mar 2007 Location: CA iTrader: (0)	Hi folks, So I called GEICO and got the full scoop on the MBI. It really sounds very good... so good that I'm going to go with it. (Makes me suspicious! Will have to wait until a repair to know if there is some weird catch.) I suppose they can offer it at such a good price because they have a much higher volume to spread the risk across than any individual car manufacturer. (Just like health insurance is cheaper and better when you are in a big company versus being an individual.) Plusses + It covers EVERYTHING (except wear-and-tear items), including navigation systems, lights, radio, etc! That's a big catch on many manufacturer extended warranties... + You can specify your body shop of choice, even a dealer. You just pay the first $250 and GEICO pays the rest. + They will use OEM parts, or if you prefer an aftermarket part, they will do that too + They will pay up to $25/day for a loaner if you need one due to parts being shipped, or a delay on GEICO's part. + It's good for 7 years/100,000 miles + Cost is WAAAAAAAAAY lower than a BMW extended warranty. Minuses: - $250 deductible per unrelated incident (so if your engine and brakes both fail, that's $500 deducted) - You must add it to the car within its first 15,000 miles. - You must be the first owner of the car. All in all, a slam dunk, especially versus the insulting dealer warranties of like $3,500 on a car that is probably worth $20K in the first place, as Drivaar said. This should help clarify for folks who have GEICO.
	Appreciate 0 Quote

09-18-2010, 01:08 PM	#19
hl0m4n Major General 2159 Rep 5,623 Posts Drives: BMW Join Date: Nov 2006 Location: NY iTrader: (58)	imo don't be fooled with all these warranty extensions bs. 100,000 miles if maintained correctly is 200% no problem to get to without problems. all warren buffet cares about is cash and being an insurance company, pay out the least amount. so what does he do with your cash? invest it and make more . i think people way overthink extended warranties. i mean the 7 years really doesn't matter but if you should without a problem make it to 100k miles no problem with proper maintanence. its all mental . __________________ Cars: 07 335i ► 08 328i ► 11 328xi ► 13 M3 ► 17 M4 ► 14 M6
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09-18-2010, 01:18 PM	#20
Rando Lieutenant 52 Rep 487 Posts Drives: BMW Join Date: Mar 2007 Location: CA iTrader: (0)	John_070: What did you pay for the BMW extension? I'm curious... You keep hinting that it was very little, but it would have to be far below $3,600 or even $3,200 for it to make sense on a $20K car, in my opinion. Also, GEICO does give you the option of OEM parts... I do agree that pretty much all insurance companies will try to slip in non-OEM, so it's probably best to check the repair parts list. But they do state that they will cover OEM parts. Unfortunately for me, my last car I had the BMW extended warranty and they stiff me because a headlight SENSOR was malfunctioning, and apparently that subsystem was not covered by the extended warranty. Same with the radio -- not covered. The MBI from GEICO does make you pay from before 15,000 miles, but the premium is very low, so it doesn't add up to a whole lot. Just making sure the facts are out there... I will certainly report back after I have a claim, so people know whether GEICO actually delivers on the promises. I also agree with hl0m4n that probably no major issues will come up. But with the N54, I am not so sure...
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09-18-2010, 01:42 PM	#21
hl0m4n Major General 2159 Rep 5,623 Posts Drives: BMW Join Date: Nov 2006 Location: NY iTrader: (58)	n54 or n55 there should be no issues. 100k miles for todays car is nothing, it just made it to its teens. after 100k miles you are really in the dark but thats when your extended warranty expires anway. and plus the only major thing on the n54 is the fuel pump which bmw already has the extended warranty for i believe it was 120k miles. when i had my 07 335i i drove the hell out of it, maintained it very well, and at 46k miles was still on my original fuel pump no problems, etc. trust me extended maintainence is all hype and just an extra way to make money. all a mind game. treat the car good and it will treat you back. __________________ Cars: 07 335i ► 08 328i ► 11 328xi ► 13 M3 ► 17 M4 ► 14 M6
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09-18-2010, 01:53 PM	#22
Rando Lieutenant 52 Rep 487 Posts Drives: BMW Join Date: Mar 2007 Location: CA iTrader: (0)	hl0m4n: I mostly agree, except I had a number of engine malfunctions... some due to HPFP and some due to other issues... (And HPFP is not a worry due to the warranty extension by BMW.) But I do agree the maintenance extension is all hype. And I do agree that if you treat the car well, it's likely to treat you well back. I know I haven't revved the 335i nearly as much as my old 330i because it just doesn't need it! The 330i I would rev to redline pretty often... 335i is great and pretty much done with whatever you needed from it by 5000 rpm anyway.
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