Geico's Mechanical Breakdown Policy Vs. Extended Warranty.
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Thread: Geico's Mechanical Breakdown Policy Vs. Extended Warranty.

  1. #1
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    Geico's Mechanical Breakdown Policy Vs. Extended Warranty. Cost only $64/Year!!!

    FWIW,

    If you're a Geico policy owner, then their mechanical breakdown policy is a great proposition to consider.

    There are virtually no exclusions except for wear and tear items obviously. For example, if the AC is just not like new, they cover it.

    And the real attraction is the price. Stipulations are, you must buy it for your new vehicle within the first 15 months/15K of ownership whichever comes first. Sure it overlaps the manufacturers policy but look closely at the following:

    The premium per year is only $64 ($32 semi annual) for a new 2007 Odyssey driven in Illinois!

    For example, buy the policy on the 14th month of ownership or before 15K have elapsed, and if you drive 15K/year this 7 year/100K policy will only cost you 6 years of premium or ~ $384!

    And you do not pay for the total UP FRONT, a better way to distribute the cost.

    Amortized out you find the yearly premiums are a much smaller percentage of typical "extended" warranties sold elsewhere. And you should compare this to the BEST warranties with broad sweeping coverages with little exclusions.

    I've exercised this policy for several expensive repairs on previous vehicles. There is little hassle encountered from selecting my choice of repair facility, authorizing the work, and payment to all parties. Your deductible and the balance of the bill is issued the same day because Geico authorizes a company credit card payment immediately at the same time upon completion of job.

    Understand a mechanical breakdown is vastly different from extended warranties in that you will encounter little resistance for your claim. And it covers virtually ANYTHING that goes awry....



    I do not work for Geico but have had my fill of "lousy extended warranties" especially from independent sources and dealerships. My guess is a lot of the profits go to the selling sources in the form of upfront commissions.



    Years ago, I had to go back to the Honda dealer in Torrance, CA 3 separate times before they fixed a leaking steering unit on my Accord under a "ex. warranty."



    This in itself is a way to save big $$$ and may warrant a look into???? Especially if you plan to buy ANY new vehicle.
    Last edited by chiody; 10-22-2007 at 10:22 PM.

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  3. #2
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    I just wanted to chime in on this, I have a 07 exl with about 5500 miles on it. I was going to wait for the last minute closer to 6k to buy the 7yr/100k ex warranty from one of the online guys. But to my luck they can no longer sell them online or out of state. It just so happens I stumbled across this thread about GEICO. When I was setting up my insurance for my new ody, the ins. sales rep told me about this and I chauk it up to be something like AAA and there service. But looking at it closer it fits what I would have shelled out another 1200 bucks for if I got that honda ex-warranty. So for about 40 bucks a year here in New York I have this great mecanical breakdown policy. I am so happy I did not shell out 1200 bucks for double coverage....

  4. #3
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    A FREE POLICY?????

    Originally posted by marky69
    I just wanted to chime in on this, I have a 07 exl with about 5500 miles on it. I was going to wait for the last minute closer to 6k to buy the 7yr/100k ex warranty from one of the online guys. But to my luck they can no longer sell them online or out of state. It just so happens I stumbled across this thread about GEICO. When I was setting up my insurance for my new ody, the ins. sales rep told me about this and I chauk it up to be something like AAA and there service. But looking at it closer it fits what I would have shelled out another 1200 bucks for if I got that honda ex-warranty. So for about 40 bucks a year here in New York I have this great mecanical breakdown policy. I am so happy I did not shell out 1200 bucks for double coverage....
    Let's see now, saved 1200 smackers. Hmmmm perhaps its in a CD with the prevailing rate around 3% so you'd earn ~$36 or about what it costs for your annual premium of $40.

    HEY, YOU NEARLY GOT A FREE POLICY!!!! GEICO, YOU ROCK!!!!

  5. #4
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    Good info. That's a REALLY good deal if you don't have to plunk down a ton of cash up front. The biggest problem with aftermarket warranties is finding a shop that will work with them. It used to be common that; Any shop would do the work for you, you pay the bill, then hash it out with your warranty company to get reimbursed for the cost. Good luck with that arrangement!! I've purchased a/m warranties through my selling dealerships in the past. Thing is, they were like $1200 up front, with ~$100 deductables per visit/job. I'd never buy one with those terms again, ever.

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    I have the mechanical breakdown policy with Geico on both my cars when I bought them new, my 99 Ford Explorer and my 2003 Ody.
    It did save me some bucks one year on my Ford. I was 2 months out of warranty, and my truck started to run rough. I brought it in the dealer and they diagnosed a defective ignition coil which in turn also damaged some plug wires. the whole bill was I believe $500, but I only paid $250 as part of Geico's plan.
    From what I understand, I think every year the price of this coverage goes up a little as the car ages, but it's still a good deal. I still have my truck and I imagine at some point Geico will at some point no longer offer me the coverage because of the age of the truck.

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    Geico claims go smoothly...

    Originally posted by sizzlemp
    I have the mechanical breakdown policy with Geico on both my cars when I bought them new, my 99 Ford Explorer and my 2003 Ody.
    It did save me some bucks one year on my Ford. I was 2 months out of warranty, and my truck started to run rough. I brought it in the dealer and they diagnosed a defective ignition coil which in turn also damaged some plug wires. the whole bill was I believe $500, but I only paid $250 as part of Geico's plan.
    From what I understand, I think every year the price of this coverage goes up a little as the car ages, but it's still a good deal. I still have my truck and I imagine at some point Geico will at some point no longer offer me the coverage because of the age of the truck.
    Current policy term for 2007 Ody's is 7yr/100K. Therefore if that was similar to what you had, your policy may not be up for renewal pretty soon?

    Anyhow, I had a claim for $2,900 for a Chrysler tranny at 65K passed the factory warranty period. Just called Geico and told them I was going into the dealership. That same morning they authorized the repair and by 6PM I had the reman installed with a 3yr/36K warranty to boot!

    Since then on our Accord and Ody have had both windshields repaired/replaced but these were under the comprehensive provisions.

    Geico loves us as other than the above, there has been NO CLAIMS for nearly 30 years with no accidents and only 1 moving violation.

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    Does anyone have any more experiences they can share about the GEICO mechanical breakdown policy??

    I just got my 2008 EX-L and my husband had agreed to it, but then we took it off considering that we would get Honda Care.

    But then I saw this thread and wondered if it would be worthwhile to get.

    We've been on the fence about getting Honda Care since we feel we bought a good product but of course it's a $30K good product and if something goes wrong with all the bells and whistles.

  9. #8
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    Originally posted by SpaceGal
    Does anyone have any more experiences they can share about the GEICO mechanical breakdown policy??

    I just got my 2008 EX-L and my husband had agreed to it, but then we took it off considering that we would get Honda Care.

    But then I saw this thread and wondered if it would be worthwhile to get.

    We've been on the fence about getting Honda Care since we feel we bought a good product but of course it's a $30K good product and if something goes wrong with all the bells and whistles.
    All the bells and whistles would be covered....

    Geico plan is a breakdown policy. Honda's a warranty with exclusions. They are different however but I believe defining a "breakdown" is plain and simple giving the nod to Geico with less denial of claims.

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    So I can't help but wonder - given that the Geico warranty seems to be better than the Honda Care warranty, why are so many people on this board still buying Honda Care? Assuming rational consumers, I'd expect most people to be going with Geico (assuming that the insurance premium difference between Geico and the current insurance company isn't greatly different)... What am I missing?
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  11. #10
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    The actual "pool" of GEICO policyholders is not that large. And when faced with the "upsell" guy when buying a Ody, the Honda warranty is what is pushed to ALL buyers.

    Disadvantage to GEICO is the flat $250 deductible for every repair in question. However this keeps many claims out of the costs to maintain this coverage.

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    Originally posted by madyash
    So I can't help but wonder - given that the Geico warranty seems to be better than the Honda Care warranty, why are so many people on this board still buying Honda Care? Assuming rational consumers, I'd expect most people to be going with Geico (assuming that the insurance premium difference between Geico and the current insurance company isn't greatly different)... What am I missing?
    So the big difference is that each time you havea repair and you use Geico's plan, you have to pay the deductible. So after 3 or 4 repairs (hopefully you won't need that many), you've equaled or exceeded the Honda Warranty price.

    Personally I'm on the fence about this. I was about to pull the trigger on a honda plan but then saw this thread. We're not Geico customers now but it may be worth switching over.

    The good news with Geico's plan and where you win is if you don't need it, then you've spent a fraction of what the honda plan would have cost you.
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