GEICO Mechanical Breakdown Insurance Review (2024)

Mechanical breakdown insurance from GEICO is an affordable way to protect against unexpected repair bills—but it comes with some important limits.
Written by R.E. Fulton
Reviewed by Kathleen Flear
GEICO’s mechanical breakdown insurance (MBI) covers repair costs for vehicle components that break down through regular use. MBI is a lot like an extended warranty, but it costs considerably less and comes with tighter limits. 
A typically new car warranty only lasts three years, leaving you with higher repair costs as your vehicle begins to age. That’s why many auto insurance companies offer MBI as an affordable
car insurance
add-on. In this guide, we’ll take a closer look at GEICO’s MBI offering: what it covers, what it doesn’t, how much it costs, and the big question—is it worth it? 

GEICO mechanical breakdown insurance: the basics

Mechanical breakdown insurance
, or MBI, is a type of optional car insurance coverage that you can add to a standard GEICO insurance policy. While most auto insurance deals with accidents or other avoidable perils, MBI is designed to protect you from unexpected repair costs by covering the cost of parts and labor for certain repairs when your vehicle breaks down through normal use
Here’s what you need to know about GEICO MBI coverage: 
  • Who’s eligible: Not every GEICO customer can add MBI to their policy. The covered vehicle must be less than 15 months old,have less than 15,000 miles on the odometer, and have comprehensive and collision coverage. 
  • How long it lasts: When you add MBI to your GEICO policy, that coverage can last seven years or 100,000 miles, whichever comes first. 
  • What you pay: In addition to an annual insurance premium that’s usually between $100 and $150, GEICO’s MBI coverage comes with a $250 deductible which you must pay before any repairs will be covered. 
  • What MBI covers: MBI covers the cost of repairs to your vehicle’s mechanical components—but it won’t cover regular maintenance services, intentional damage, or damage caused by improper maintenance. 
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What does GEICO mechanical breakdown insurance cover?

Let’s break down GEICO’s MBI coverage a little further. Like the
manufacturer’s warranty
on a new car, MBI will cover most of your car’s major mechanical parts. That includes: 
  • Engine
  • Drivetrain 
  • Steering system
  • Cooling system 
  • Suspension 
  • Electrical system
For all of these components, GEICO’s MBI will cover “fair and reasonable charges” for both parts and labor. In the case of a major mechanical failure like a
blown engine
, having MBI could seriously reduce the cost of repairs. And unlike a new car warranty, which typically only covers repairs at the dealership, GEICO’s MBI allows you to choose a repair shop you trust and submit an insurance claim for reimbursement.

What does MBI not cover?

When it comes to MBI, the bigger question is what’s not covered? GEICO’s MBI coverage won’t cover the following exclusions: 
  • Tune-ups
  • Oil changes
  • Wheel balancing
  • Spark plugs
  • Brake pads, brake shoes, and brake linings
  • Coolant and fluids 
  • Tires
  • Lubrication
  • Suspension alignment
  • Any repairs caused by intentional damage, corrosion, misuse, improper maintenance, or an accident or environmental cause
If your vehicle’s damage is covered under your GEICO
collision insurance
or
comprehensive coverage
, it won’t be covered by MBI. Likewise, if your mechanical problems stem from poor maintenance (e.g., your engine died because you failed to change the oil on time), you won’t be able to get coverage. 

How much does GEICO mechanical breakdown insurance cost?

MBI from GEICO is cheap: just $100 to $150 per year on average. That works out to about $8 to $12 per month. 
Keep in mind that the exact cost of MBI will depend on the type of car you own. You’re more likely to pay a higher rate for MBI if your vehicle: 
  • Is large or has higher mileage
  • Gets poor reliability ratings
  • Has high-tech components
For example, a luxury SUV loaded up with tons of driver assistance tech, like the all-new BMW XM, will come with higher MBI costs than a highly reliable sedan like the
Honda Civic

Is GEICO mechanical breakdown insurance worth it?

It depends. The major benefit of MBI is that it allows you to pay a small amount upfront for peace of mind when it comes to unexpected car repairs. It covers a longer period than the average factory warranty and costs a lot less than an extended car warranty or vehicle service contract. 
The downside? If your car doesn’t need any major repairs during the period that MBI covers, you might end up feeling like you threw that money away for no reason. It’s also possible that in some cases your policy won’t cover repairs you expected to be able to submit an MBI claim for. For example, a repair facility could charge a rate that your insurance provider says isn’t “fair and reasonable.” 

Mechanical breakdown coverage vs. extended warranty

If you’re considering buying MBI from GEICO, you might also be looking at
extended warranty plans
. They’re very similar, but with some key differences summarized in the table below. 
GEICO mechanical breakdown insurance (MBI)
Extended warranty
Eligibility
Can only be added to cars less than 15 months old with 15k miles or less
Can be added to a vehicle at almost any point
Coverage options
One MBI plan
Multiple tiers of coverage from different providers
Length of coverage
Maximum limit of 7 years/100,000 miles
Coverage options can extend to 15 years/300,000 miles
Deductible
$250 deductible 
Deductibles range from $0 to $250
Regulation
Regulated by state insurance commissioners
Unregulated
Extra benefits
None
Roadside assistance often included
Cost
$100 to $150 per year
$1,300 to $4,000 per year
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To summarize: GEICO’s MBI comes with a high deductible and no added benefits—but it’s regulated and far cheaper than an extended car warranty. 

The bottom line

If you want an extra layer of protection for your wallet and don’t mind paying a little extra each month to offset the cost of potential major repairs, buying MBI from GEICO is a good idea. However, it’s also worth comparing MBI coverage and costs from other car insurance companies, like
Progressive
, to find the best option for you. 
On the other hand, if you’re trying to
keep insurance costs low
for a new vehicle, you can skip MBI. Keeping collision and comprehensive coverage as a part of  your car insurance policy is much more important than MBI, which should be treated as an optional insurance product.
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