GEICO & USAA Extended Car Warranty

[MatthewDavid]

I just had my mind blown by Geico. I was calling to get a quote on another car and they dropped this previously unheard of item on me:

They offer as an option a bumper-to-bumper 7-year / 100k miles mechanical and electrical warranty for an additional amount as part of your premium. It wasn't a significant cost, either. Per year, I believe the quote was around $20. I think you need to get it within 15 months or 15k miles from purchase (for Geico at least)

I'm waiting for the fine print to read about it, but here's the web link:

http://www.geico.com/getaquote/auto/...own-insurance/

It looks like USAA offers something too:

https://www.usaa.com/inet/pages/exte...rogram_details

Maybe you guys already knew this, but if not, there you go.

[jcaptain]

I actually have the GEICO mechanical breakdown policy in effect. You need to sign up as the original owner of the vehicle during the first 15 months or 15,000 miles. It costs me $38 every six months. I have to pay for this even though I am under the factory warranty now - but, hopefully, it will be well worth it.

By the way, there is a $250.00 deductible on this policy but it does appear to be pretty extensive.

[MatthewDavid]

Originally Posted by jcaptain

I actually have the GEICO mechanical breakdown policy in effect. You need to sign up as the original owner of the vehicle during the first 15 months or 15,000 miles. It costs me $38 every six months. I have to pay for this even though I am under the factory warranty now - but, hopefully, it will be well worth it.

By the way, there is a $250.00 deductible on this policy but it does appear to be pretty extensive.

Sounds like it'll definitely be worth it. Over 7 years, assuming no change in the premium, that's $504 vs. several thousand dollars for other options.

[jcaptain]

Originally Posted by MatthewDavid

Sounds like it'll definitely be worth it. Over 7 years, assuming no change in the premium, that's $504 vs. several thousand dollars for other options.

I have a feeling the premium might increase slightly over the 7 years, but it should still (hopefully) be worthwhile.

[Merlosso]

Mechanical Breakdown Insurance from GEICO is not a warranty, it's insurance. It's an important and significant difference. A warranty lists everything that is covered. Insurance lists what is not covered. That was the big selling point for me. The exclusion list with GEICO is very, very short. If you have a problem and it's not on that short list, it's covered, as opposed to a warranty where work always needs to be approved.

I have had MBI on all of my new cars with GEICO. Its cheap, I pay for it as I go, it adds nothing to the purchase price of the car, I dont pay interest on it, and when I sell the car I just drop the coverage.

[MatthewDavid]

Originally Posted by Merlosso

Mechanical Breakdown Insurance from GEICO is not a warranty, it's insurance. It's an important and significant difference. A warranty lists everything that is covered. Insurance lists what is not covered. That was the big selling point for me. The exclusion list with GEICO is very, very short. If you have a problem and it's not on that short list, it's covered, as opposed to a warranty where work always needs to be approved.

I have had MBI on all of my new cars with GEICO. Its cheap, I pay for it as I go, it adds nothing to the purchase price of the car, I dont pay interest on it, and when I sell the car I just drop the coverage.

Even better! Thanks for the clarification.

I wonder what happens if your engine has a rod bearing failure and a piston comes out the side of the block...

[Merlosso]

Originally Posted by MatthewDavid

Even better! Thanks for the clarification.

I wonder what happens if your engine has a rod bearing failure and a piston comes out the side of the block...

If the car is still under the factory warranty, then BMW should cover it. But if they give you the run-around then file a claim. You'll pay your $250 deductible and it will get fixed. If GEICO believes it should be covered by warranty they'll go after BMW and if they win, you get your deductible back.

Another thing, these claims are like comp claims. Filing one does not affect your premium. I made absolutely sure of that.