[oduli81]

Originally Posted by trey100

I was on the phone with Geico insuring a new car and as they were reviewing my policy they told me I had this coverage on my M3. I was so confused why I would have warranty insurance when I already have the BMW warranty (my car is leased) so I had them remove it, as small as it was. Now reading this I am regretting it just in case I buy out my car. Seems way too cheap to cover a car with such expensive parts. Especially since I drive 15-17k a year. Is there a mileage cap on it?

7 years or 100k, whichever comes first.

[RobbyMack]

Originally Posted by boss2k

So you are saying for 200 bucks the insurance company is providing extended coverage on a BMW that costs around 3-4k in market, how is the Insurance company making money? Even if u don't file a claim they are making 200 bucks for a risk of thousands of dollars if there is a claim? How is that possible?

The market for those aftermarket extended warrantees you are comparing is totally different. The risk pool is different as is the take rate. That's why they are expense. That being said they are also underwriting at an enormous profit because the actual risk is very low for a catastrophic failure. Basically once you drive a modern car off the lot and it doesn't break on your way home the risk for any type of serious malfunction for the next 100k miles or 7-10 years is essentially near zero. The manufactured risk based in anecdotal evidence in this forum and the internet as a whole creates the market for those aftermarket warrantees. That all being said anyone driving a car like a M3 or other luxury vehicle is better off with a insurance company not geico because their offered limits of insurance and available umbrella are not enough if you have decent income and assets to protect. That liability risk is way more important than some mechanical breakdown insurance.

[mephiska]

Originally Posted by Poochie

You're mixing up the two; MBI or Mechanical Breakdown Insurance is a separate coverage from glass repair.

If you look at your auto policy's 'declaration page'; it's going list 'Comprehensive' - under that you'll see you're deductible for glass coverage. It is possible it might only be only $50 per repair. However, it has absolutely no relation to MBI.

Unless they've recently changed it to add glass to comprehensive, in CA at least I only get the glass coverage if I have MBI. Free chip repairs at Safelite and $50 deductible on windshields but only if done at their preferred shop (again Safelite).

If you want to take it to the dealer or your own shop they tell you that they will only pay "local market rate" for the windshield replacement, and the dealer is usually way above that rate.

[alex2364]

Originally Posted by RobbyMack

The market for those aftermarket extended warrantees you are comparing is totally different. The risk pool is different as is the take rate. That's why they are expense. That being said they are also underwriting at an enormous profit because the actual risk is very low for a catastrophic failure. Basically once you drive a modern car off the lot and it doesn't break on your way home the risk for any type of serious malfunction for the next 100k miles or 7-10 years is essentially near zero. The manufactured risk based in anecdotal evidence in this forum and the internet as a whole creates the market for those aftermarket warrantees. That all being said anyone driving a car like a M3 or other luxury vehicle is better off with a insurance company not geico because their offered limits of insurance and available umbrella are not enough if you have decent income and assets to protect. That liability risk is way more important than some mechanical breakdown insurance.

$1 million liability coverage isn't enough for car insurance? Sorry I'm not a multimillionaire.

[backagain]

Originally Posted by mephiska

Unless they've recently changed it to add glass to comprehensive, in CA at least I only get the glass coverage if I have MBI. Free chip repairs at Safelite and $50 deductible on windshields but only if done at their preferred shop (again Safelite).

If you want to take it to the dealer or your own shop they tell you that they will only pay "local market rate" for the windshield replacement, and the dealer is usually way above that rate.

According to Geico website (https://www.geico.com/claims/glass-claims-guide/), windshield repair is covered under comprehensive, which is also why you only had to pay $50 when the MBI deductible is $250.

[mephiska]

Originally Posted by backagain

According to Geico website (https://www.geico.com/claims/glass-claims-guide/), windshield repair is covered under comprehensive, which is also why you only had to pay $50 when the MBI deductible is $250.

I don't think that's completely correct. The $50 windshield replacement deductible applies if you have both comprehensive AND MBI. If you don't have MBI then the windshield replacement is subject to your comprehensive deductible.

[Nardoom3]

so will insurance cover it if your. motor blows because of a tune?

[krotondo]

I added the MBI at 14.5K on my 17' M3. Nearing 30k miles in only 17 Months, so it'll kick in very soon for me

[mephiska]

Originally Posted by Nardoom3

so will insurance cover it if your. motor blows because of a tune?

That would probably fall under misuse.

*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.

[shiv.nandak]

I had this on my F82 before trading it in. I imagine many people get this and trade in the car even before warranty expires.

[Nardoom3]

will the insurance look for tunes?

[Zayzel]

Trying to understand where you're getting $2.50/month? I called Geico and they told me specifically that MBI is not offered as a standalone option. Are people buying actual comprehensive and collision auto insurance and adding on the MBI? I have good coverage already with my auto insurance and only wanted to add MBI, but apparently GEICO says NOPE

Originally Posted by oduli81

I have 2018 F80, not sure if I will be keeping it after 3 years. I found some interesting articles on geico and their MBI. I decided to place the additional coverage for $2.50 a month, its transferable as long as the second owner has geico or will place the car under geico. It covers, engine, transmission, suspension etc.. all major components. No wear and tear items. It's good for 7 year up to 100k. At $2.50 a month, seems like a no brainer. Only catch, your car has to have less then 15k miles and be less then 15months old. Anyone else done this yet??

[NoMoreAudi]

Insurance companies exist to make profit and nothing else. Keep in mind that a requirement (if it is one) of switching insurance over to them can be costly. Covering a single car with no multi-policy discount is like buying a can of soda at 7-11 instead of in bulk at Costco. High premiums will augment the true cost of the MBI. When it comes to numbers, insurance companies are king. Look at their profits and lobbying power. I'd be careful on switching carriers just to get "cheap" insurance for extra coverage that may not be necessary.

This plan seems very similar to a protection plan/extended coverage plan a finance manager sells when buying a car. The difference is that Geico is a large company and can sell it cheaper.

Kicker: If it's a new program, you (consumer) may be able to benefit from it. They have no baseline of numbers and no idea if they will lose or make money. You can potentially come out on top at Geico's expense.

[F80 ZCP]

You have to have the insurance coverage with Geico in order to get the MBI. It is not a standalone product.

[RobbyMack]

Originally Posted by alex2364

$1 million liability coverage isn't enough for car insurance? Sorry I'm not a multimillionaire.

For you it could be. Everyones situation is different. I'm generally risk averse so I tend to err on the high side mostly because it's so cheap to continue to add layers of coverage above the primary limit. Living situation (own/rent/married), other properties, investments, kids, income, risk tolerance level, all go into it. Their is also the total insurance package to consider, home, scheduled jewelry, life, etc which is why engaging a insurance professional is generally better than the buy by phone or internet options who struggle to offer customized solutions for clients. If you fit their model it's great and I do get the allure of those for their ease of use. I'm biased though. I own a commercial agency.

[trey100]

Originally Posted by RobbyMack

The market for those aftermarket extended warrantees you are comparing is totally different. The risk pool is different as is the take rate. That's why they are expense. That being said they are also underwriting at an enormous profit because the actual risk is very low for a catastrophic failure. Basically once you drive a modern car off the lot and it doesn't break on your way home the risk for any type of serious malfunction for the next 100k miles or 7-10 years is essentially near zero. The manufactured risk based in anecdotal evidence in this forum and the internet as a whole creates the market for those aftermarket warrantees. That all being said anyone driving a car like a M3 or other luxury vehicle is better off with a insurance company not geico because their offered limits of insurance and available umbrella are not enough if you have decent income and assets to protect. That liability risk is way more important than some mechanical breakdown insurance.

But there's a lot more that can break on a car before 100k Miles. One NAV/electronics failure could be expensive, or any other minor components. Just seems like $30/year is so low, I just assumed it wouldn't cover anything. Lesson learned it seems!

[RobbyMack]

Originally Posted by trey100

But there's a lot more that can break on a car before 100k Miles. One NAV/electronics failure could be expensive, or any other minor components. Just seems like $30/year is so low, I just assumed it wouldn't cover anything. Lesson learned it seems!

I wouldn't assume electronics would be covered under mechanical breakdown without reading the policy language.

[paliknight]

Originally Posted by Poochie

You're mixing up the two; MBI or Mechanical Breakdown Insurance is a separate coverage from glass repair.

If you look at your auto policy's 'declaration page'; it's going list 'Comprehensive' - under that you'll see your deductible for glass coverage. It is possible it might only be only $50 per repair. However, it has absolutely no relation to MBI.

Oh I knew they were independent but when I asked the geico rep about the glass coverage she said that's also included under MBI. I told her I don't see it listed under the MBI coverage but she insisted it was covered under it. That's what confused me.

[Poochie]

Originally Posted by paliknight

Oh I knew they were independent but when I asked the geico rep about the glass coverage she said that's also included under MBI. I told her I don't see it listed under the MBI coverage but she insisted it was covered under it. That's what confused me.

Bro, I have nothing to gain by giving you misinformation; the coverage are completely different and itemized. Your deductible is set at $50, or if you live in Florida, there is no deductible for glass repair. I have a (expired) NY insurance brokers license, I know what I'm saying to you is 100% factual. If I wasn't sure, I would of said so also.

[Poochie]

I want to add the another reason MBI is better than the factory warranty is because insurance companies are govern by your state's regulations, which are stringent laws an insurance company must abide by, in order to operate in that state. Layman's terms; they can't deny coverage for any arbitrary reason, unlike a dealer.

The factory warranty is not held to such high standards that an insurance company has to follow. So you have a much better chance of MBI paying for an issue over the factory warranty, as asinine as that might sound.

There is actually distinguishing difference between a "warranty" and "insurance" although they might seem the same.

[IK6SPEED]

Originally Posted by RobbyMack

That all being said anyone driving a car like a M3 or other luxury vehicle is better off with a insurance company not geico because their offered limits of insurance and available umbrella are not enough if you have decent income and assets to protect. That liability risk is way more important than some mechanical breakdown insurance.

Well, I have a Geico Policy with $1M per incident and $200k property so your inference that Geico offered limits are not enough is ignorant....almost just like your statements that catastrophic failures only happen on internet posts.

Originally Posted by Poochie

I want to add the another reason MBI is better than the factory warranty is because insurance companies are govern by your state's regulations, which are stringent laws an insurance company must abide by, in order to operate in that state. Layman's terms; they can't deny coverage for any arbitrary reason, unlike a dealer.

The factory warranty is not held to such high standards that an insurance company has to follow. So you have a much better chance of MBI paying for an issue over the factory warranty, as asinine as that might sound.

There is actually distinguishing difference between a "warranty" and "insurance" although they might seem the same.

Nope.

States regulate Insurance.

Just as Extended Warranties are not actually Warranties, MBI is not Insurance and as thus not regulated by the State.

[Poochie]

Originally Posted by IK6SPEED

Well, I have a Geico Policy with $1M per incident and $200k property so your inference that Geico offered limits are not enough is ignorant....almost just like your statements that catastrophic failures only happen on internet posts.

Nope.

States regulate Insurance.

Just as Extended Warranties are not actually Warranties, MBI is not Insurance and as thus not regulated by the State.

It's called Mechanical Breakdown "Insurance" and it is underwritten by the 3rd largest insurance company in the US.

https://www.warrantydirect.com/MBIBasics.aspx