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      02-13-2019, 03:51 PM   #1
peter11
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Geico Mechanical Breakdown Insurance 7yrs/100k $11 per month

I just called up Geico to get a quote for the new x5. While the quote seemed high, they did offer to add on their Mechanical Breakdown Insurance for only an extra $11 per month. The coverage is renewable for 7 years and 100K miles. The deductible is high, $250, the premium is great. It seems to cover everything except maintenance items. If you go in for multiple repairs the deductible is charged multiple times, even for a single repair visit. What I don't know is whether the premium becomes outrageously expensive once you get to year 5 when the manufacturers warranty expires.

Claims require that your dealer (or any licensed repair facility) communicate with Geico once the problem has been diagnosed. Once approved they will pay the repair facility directly, less the deductible.

Does anyone have experience with this product? Sounds way too cheap, especially for an x5. At $11 per month for 72 months that's only $792. Even if it doubles (rates always go up) its still a good deal. I guess the shortcoming is you have no way of knowing how much they might increase it and they certainly could justify increasing it due to claims experience either with your specific car or all BMW's.

Has anyone ever used this or know anything more about it? I believe the extended warranties on x5's are very expensive ($4k-$7k) depending on the options chosen.

Last edited by peter11; 02-13-2019 at 03:52 PM. Reason: typos
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      02-13-2019, 04:30 PM   #2
mynewx5
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We have this coverage with GEICO. It seems like a very good deal with a few important points to note. One, the first four (or so) years you are paying for coverage that you can't use as the BMW factory warranty is in effect. Two, if you leave GEICO at any point you will obviously lose the warranty coverage.

Worst case scenario, you keep GEICO for 3 years and 11 months and then change insurance to another carrier. You are out $517.00 max. Best case scenario you have a covered repair in year four, five or six and save thousands. To me its worth a $517 gamble as we plan to stick with GEICO barring unforeseen circumstances.

If you are the kind of person who likes to shop your auto insurance around and switch companies every few years this is not going to benefit you. If GEICO is competitive in your zip code and you plan to stick with them it can be a great value.
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      02-13-2019, 04:36 PM   #3
peter11
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Quote:
Originally Posted by mynewx5 View Post
We have this coverage with GEICO. It seems like a very good deal with a few important points to note. One, the first four (or so) years you are paying for coverage that you can't use as the BMW factory warranty is in effect. Two, if you leave GEICO at any point you will obviously lose the warranty coverage.

Worst case scenario, you keep GEICO for 3 years and 11 months and then change insurance to another carrier. You are out $517.00 max. Best case scenario you have a covered repair in year four, five or six and save thousands. To me its worth a $517 gamble as we plan to stick with GEICO barring unforeseen circumstances.

If you are the kind of person who likes to shop your auto insurance around and switch companies every few years this is not going to benefit you. If GEICO is competitive in your zip code and you plan to stick with them it can be a great value.

The part about paying for the first four years but getting no coverage I understand. But that's not really any different than buying an extended warranty when a car is new since it does not kick in until year 4. I guess you can put off that warranty purchase, but I imagine that most buy at the time of sale.

I am guessing you have not had this coverage long. Do you know if they charge everyone the same rate ($11 per month) regardless of the type of car? Do you have any sense if they jack up the rates ruthlessly in year 5?
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      02-13-2019, 04:52 PM   #4
mynewx5
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Quote:
Originally Posted by peter11 View Post
The part about paying for the first four years but getting no coverage I understand. But that's not really any different than buying an extended warranty when a car is new since it does not kick in until year 4. I guess you can put off that warranty purchase, but I imagine that most buy at the time of sale.

I am guessing you have not had this coverage long. Do you know if they charge everyone the same rate ($11 per month) regardless of the type of car? Do you have any sense if they jack up the rates ruthlessly in year 5?
Yes, new to GEICO in the past two years so not 100% sure what happens to the premiums in year five. My guess is they stay about the same though. What a bait and switch that would be to charge premiums during the manufacturer warranty period where they have ZERO exposure only to jack them up once the manufacturer warranty expires.

My guess is that GEICO makes enough money off people who drop out before ever having a chance to make a warranty claim in years one to four. That offsets their losses in years five, six and seven to people who stick it out.

I just checked and our coverage is $30 for six months. I'm sure it is all based on zip codes. I'm not going to sweat losing $240 in the event I leave GEICO at 48 months. The potential benefits outweigh the risk.
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      Yesterday, 01:53 AM   #5
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I just did an estimate, here is the quote:

The key point will Geico increase price after 4 years?
Anyone had experience?
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      Yesterday, 10:54 AM   #6
geye1970
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250 deductible per repair *item* is a deal breaker, imo
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      Yesterday, 11:57 AM   #7
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Originally Posted by geye1970 View Post
250 deductible per repair *item* is a deal breaker, imo
Meaning?
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      Yesterday, 01:29 PM   #8
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Quote:
Originally Posted by 2019x5User View Post
Meaning?
From OP:
Quote:
If you go in for multiple repairs the deductible is charged multiple times, even for a single repair visit.
1 visit, fix the door handle and the tailgate. That's $500 bucks. Most others charge, one deductible, IIRC.
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      Yesterday, 02:23 PM   #9
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Quote:
Originally Posted by geye1970 View Post
Quote:
Originally Posted by 2019x5User View Post
Meaning?
From OP:
Quote:
If you go in for multiple repairs the deductible is charged multiple times, even for a single repair visit.
1 visit, fix the door handle and the tailgate. That's $500 bucks. Most others charge, one deductible, IIRC.
I see, then why bothers.

Thanks
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      Yesterday, 03:37 PM   #10
peter11
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All insurance products give you the option to choose more or less coverage. Perhaps a door handle and the trunk release is a cheap repair, well under the deductible (and perhaps the BMW extended warranty is the same for charging multiple deductibles in this case). This is more like a major medical policy. Although with a BMW it does not take a lot to get up to $250. I am thinking about electronic issues, Air Conditioning, etc. To buy a policy as comprehensive as this (albeit with a lower deductible) I believe is $5K to $7k (please correct me if I am wrong). While the Geico policy I am guessing is not transferable, at least one need not pay such a large premium for general piece of mind for repairs that can easily cost $1,000 or more. I think my odds of coming out ahead (which is the way I tend to weigh whether a policy is worth it) are pretty good on something like this. Am I interpreting this wrong?
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      Yesterday, 04:01 PM   #11
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The huge selling point is the glass coverage. They don't write much about it, but I had a X6 with MBI coverage and they covered factory OEM glass with only $50 deductible. On another BMW I have, I didn't purchase MBI, and they would only cover aftermarket glass and I had to pay my comprehensive $500 deductible.

This is in Washington State, you're YMMV in your state.
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      Yesterday, 04:44 PM   #12
mynewx5
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Quote:
Originally Posted by peter11 View Post
All insurance products give you the option to choose more or less coverage. Perhaps a door handle and the trunk release is a cheap repair, well under the deductible (and perhaps the BMW extended warranty is the same for charging multiple deductibles in this case). This is more like a major medical policy. Although with a BMW it does not take a lot to get up to $250. I am thinking about electronic issues, Air Conditioning, etc. To buy a policy as comprehensive as this (albeit with a lower deductible) I believe is $5K to $7k (please correct me if I am wrong). While the Geico policy I am guessing is not transferable, at least one need not pay such a large premium for general piece of mind for repairs that can easily cost $1,000 or more. I think my odds of coming out ahead (which is the way I tend to weigh whether a policy is worth it) are pretty good on something like this. Am I interpreting this wrong?
Exactly, you don't get this policy for fear of a door handle breaking. It's all of the electronics in these cars. Can you imagine what a fried iDrive or live cockpit pro screen would cost to replace? Scary!
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      Yesterday, 04:48 PM   #13
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I have this policy on both my cars. You can only buy when car is new. Used to be for life of car. A friend of mine got a new engine for $250 deductible on his subaru. No brainer
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      Yesterday, 04:51 PM   #14
steve090619
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Quote:
Originally Posted by peter11 View Post
Quote:
Originally Posted by mynewx5 View Post
We have this coverage with GEICO. It seems like a very good deal with a few important points to note. One, the first four (or so) years you are paying for coverage that you can't use as the BMW factory warranty is in effect. Two, if you leave GEICO at any point you will obviously lose the warranty coverage.

Worst case scenario, you keep GEICO for 3 years and 11 months and then change insurance to another carrier. You are out $517.00 max. Best case scenario you have a covered repair in year four, five or six and save thousands. To me its worth a $517 gamble as we plan to stick with GEICO barring unforeseen circumstances.

If you are the kind of person who likes to shop your auto insurance around and switch companies every few years this is not going to benefit you. If GEICO is competitive in your zip code and you plan to stick with them it can be a great value.

The part about paying for the first four years but getting no coverage I understand. But that's not really any different than buying an extended warranty when a car is new since it does not kick in until year 4. I guess you can put off that warranty purchase, but I imagine that most buy at the time of sale.

I am guessing you have not had this coverage long. Do you know if they charge everyone the same rate ($11 per month) regardless of the type of car? Do you have any sense if they jack up the rates ruthlessly in year 5?
Quote:
Originally Posted by peter11 View Post
Quote:
Originally Posted by mynewx5 View Post
We have this coverage with GEICO. It seems like a very good deal with a few important points to note. One, the first four (or so) years you are paying for coverage that you can't use as the BMW factory warranty is in effect. Two, if you leave GEICO at any point you will obviously lose the warranty coverage.

Worst case scenario, you keep GEICO for 3 years and 11 months and then change insurance to another carrier. You are out $517.00 max. Best case scenario you have a covered repair in year four, five or six and save thousands. To me its worth a $517 gamble as we plan to stick with GEICO barring unforeseen circumstances.

If you are the kind of person who likes to shop your auto insurance around and switch companies every few years this is not going to benefit you. If GEICO is competitive in your zip code and you plan to stick with them it can be a great value.

The part about paying for the first four years but getting no coverage I understand. But that's not really any different than buying an extended warranty when a car is new since it does not kick in until year 4. I guess you can put off that warranty purchase, but I imagine that most buy at the time of sale.

I am guessing you have not had this coverage long. Do you know if they charge everyone the same rate ($11 per month) regardless of the type of car? Do you have any sense if they jack up the rates ruthlessly in year 5?
Are you sure $11 a month. I pay $26 for year on my 540
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      Yesterday, 04:56 PM   #15
peter11
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Quote:
Originally Posted by onesixeight View Post
The huge selling point is the glass coverage. They don't write much about it, but I had a X6 with MBI coverage and they covered factory OEM glass with only $50 deductible. On another BMW I have, I didn't purchase MBI, and they would only cover aftermarket glass and I had to pay my comprehensive $500 deductible.

This is in Washington State, you're YMMV in your state.
I neglected to mention that what I was quoted did also have that $50 deductible for glass. I don't know about the OEM part, but getting a chip in the glass that turns into a crack is pretty easy. Glass seems soft these days.
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      Yesterday, 05:00 PM   #16
peter11
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Quote:
Originally Posted by steve090619 View Post
Are you sure $11 a month. I pay $26 for year on my 540
I am sure that's what they quoted me. Perhaps it is a % of the policy cost or that they anticipate more expense with the X5? As I mentioned the policy itself (without the mechanical breakdown policy) seems high ($787 for 6 months). I do carry excess liability coverage and I have a perfect driving record too. My tesla Model 3 was $563 for six months (again withtout mechanical breakdown policy).
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      Yesterday, 05:17 PM   #17
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I prefer to separate my auto-insurance from any warranties.

This is a great example. When I obtain a new vehicle, I want to be sure that I have warranty for X years at X cost. I don't want to worry about rising fees and/or cancellations.

Progressive also offers GAP-insurance so you might think it's a good idea to skip that when you are purchasing/leasing at your dealer. But again, what happens if it gets more expensive or worse, they stop offering it? Who will provide you with that coverage then? Do you want to be bound to your current insurance just to keep this coverage (for example, GEICO didn't offer GAP-insurance).

I prefer taking care of these things when I take delivery and not having to worry about it later as long as I keep the car.
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      Yesterday, 06:06 PM   #18
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Quote:
Originally Posted by peter11 View Post
Quote:
Originally Posted by onesixeight View Post
The huge selling point is the glass coverage. They don't write much about it, but I had a X6 with MBI coverage and they covered factory OEM glass with only $50 deductible. On another BMW I have, I didn't purchase MBI, and they would only cover aftermarket glass and I had to pay my comprehensive $500 deductible.

This is in Washington State, you're YMMV in your state.
I neglected to mention that what I was quoted did also have that $50 deductible for glass. I don't know about the OEM part, but getting a chip in the glass that turns into a crack is pretty easy. Glass seems soft these days.
Quote:
Originally Posted by peter11 View Post
Quote:
Originally Posted by onesixeight View Post
The huge selling point is the glass coverage. They don't write much about it, but I had a X6 with MBI coverage and they covered factory OEM glass with only $50 deductible. On another BMW I have, I didn't purchase MBI, and they would only cover aftermarket glass and I had to pay my comprehensive $500 deductible.

This is in Washington State, you're YMMV in your state.
I neglected to mention that what I was quoted did also have that $50 deductible for glass. I don't know about the OEM part, but getting a chip in the glass that turns into a crack is pretty easy. Glass seems soft these days.
Glass should be covered in collision part of policy. I have zero deductible glass coverage
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      Today, 02:29 AM   #19
onesixeight
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Quote:
Originally Posted by steve090619 View Post
Glass should be covered in collision part of policy. I have zero deductible glass coverage
https://www.geico.com/claims/glass-claims-guide/

It should be covered under comprehensive, not collision. See link above.
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      Today, 07:46 PM   #20
steve090619
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Quote:
Originally Posted by onesixeight View Post
Quote:
Originally Posted by steve090619 View Post
Glass should be covered in collision part of policy. I have zero deductible glass coverage
https://www.geico.com/claims/glass-claims-guide/

It should be covered under comprehensive, not collision. See link above.
Quote:
Originally Posted by onesixeight View Post
Quote:
Originally Posted by steve090619 View Post
Glass should be covered in collision part of policy. I have zero deductible glass coverage
https://www.geico.com/claims/glass-claims-guide/

It should be covered under comprehensive, not collision. See link above.
Wherever it is, it's part if your coverage. Why pay for that in mechanical breakdown coverage?
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