If you’re a GEICO policyholder looking for extended vehicle coverage, you may be considering mechanical breakdown insurance. But is GEICO mechanical breakdown insurance worth it? 

Learn about the coverage options and costs of GEICO mechanical breakdown insurance (MBI) to decide if this is the right protection plan for your car.

MBI policies tend to be cheaper than extended car warranties but don’t always offer the same quality of coverage. We encourage drivers to get a quote from GEICO and compare the price and coverage against offers from the best extended auto warranty providers on the market. This way, you can make sure you’re getting the most out of your vehicle protection.

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What is GEICO Mechanical Breakdown Insurance?

MBI is an insurance policy that provides protection for your car’s major mechanical parts. GEICO mechanical breakdown insurance can cover your vehicle for up to 7 years or 100,000 miles, whichever comes first. It is an optional policy that isn’t to be confused with typical car insurance such as collision coverage.

See the difference in these types of coverage below:

When to Use
GEICO Mechanical Breakdown Insurance
When to Use
a Standard Car Insurance Policy
Your car breaks down and you need a tow
or roadside assistance.
Your car is damaged in a collision
or weather-related event.
A mechanical component of your car malfunctions. A mechanical part of your car is faulty due
to a previous collision or other damage.

If you’re nervous about purchasing an extended auto warranty, it may give you peace of mind to know that, like all insurance products, MBI is regulated by state governments. Additionally, GEICO has a positive industry reputation that bodes well for its trustworthiness. 

Some of GEICO’s accolades include the following ratings from auto industry leaders:

Rating Score What it Means
AM Best Financial Strength A++ GEICO has capable finances
to pay out customer claims.
Better Business Bureau
A+ GEICO has positive interactions
with its customers.
J.D. Power 2020 U.S.
Insurance Shopping StudySM
867/1,000* GEICO provides the most satisfying purchase experience among US insurance providers.

*GEICO received the highest score among all providers tested.

How Much Does GEICO Mechanical Breakdown Insurance Cost?

GEICO does not share pricing information online, but the Wall Street Journal reports that customers spend up to $75 per year for MBI policies with deductibles up to $400. We found customers online who reported paying $72 to $120 per year for GEICO mechanical breakdown insurance, which is considerably cheaper than an extended auto warranty.

As with any extended warranty, the cost of your GEICO mechanical breakdown insurance will depend on:

  • Your location
  • The type of car you drive
  • Your vehicle’s age and mileage

All GEICO MBI plans hold a $250 deductible. Your deductible is the price you will pay to the repair shop out of pocket for any covered repair, and GEICO will handle the rest. This is relatively high compared to third-party warranties, which usually offer deductibles between $0 and $200.

What Does GEICO Mechanical Breakdown Insurance Cover?

A GEICO mechanical breakdown insurance policy is an exclusionary plan that covers most mechanical vehicle parts for up to 7 years or 100,000 miles. To be eligible for GEICO mechanical breakdown insurance, your car must be less than 15 months old with less than 15,000 miles.

Examples of systems that are covered under a GEICO mechanical breakdown insurance policy include:

  • Engine
  • Transmission
  • Drive axle
  • Steering
  • Suspension
  • Cooling system
  • Electrical systems

What’s Not Covered Under GEICO Mechanical Breakdown Insurance?

GEICO MBI covers all repairs to mechanical car parts, except for parts that are damaged due to normal wear and tear or collisions. 

Other exclusions to GEICO mechanical breakdown insurance are as follows:

  • Regular maintenance: Tune-ups, suspension alignments, wheel balancing, filter replacements, lubrication, spark plugs, coolant, and fluid changes
  • Intentional damage: Misuse and damage from improper maintenance
  • Interior and exterior components: Upholstery, dents, scratches, and corrosion

These exclusions are also typically left out of extended car warranties. However, select manufacturers and third-party providers offer tire and wheel protection as an included perk or as add-on coverage.

Luxury vehicles such as Audis and Teslas do not qualify for GEICO mechanical breakdown insurance.

Mechanical Breakdown Insurance Vs. Extended Warranty Coverage

While GEICO mechanical breakdown insurance is a good option for extended protection, the majority of drivers won’t be eligible for coverage. Unless you’ve just purchased a new vehicle, it’s unlikely you’ll qualify for MBI. However, you may be interested in protecting your car with an extended coverage plan from a third-party warranty provider. 

What’s the difference between mechanical breakdown insurance and an extended auto warranty? There are a few distinct pros and cons of choosing either type of protection.

MBI Pros

For starters, MBI policies are often cheaper than extended warranty plans. Similar to many reputable third-party warranty plans, GEICO mechanical breakdown insurance policies allow you to have your vehicle repaired at any certified repair shop.

Another advantage is if you already have car insurance with a provider, it means both your MBI claims and regular insurance claims are being handled by the same company. 

MBI Cons

Even though MBI plans have lower monthly payments, most carry a higher deductible. So even though you’re paying less overall, you’ll need to pay more out of pocket for each repair. Reputable warranty providers can also offer higher-quality coverage and more perks than an auto insurance company.

Typically, extended warranty companies offer multiple plans to choose from, so you won’t need to pay extra for unwanted coverage. GEICO only has one MBI policy.

Top Recommendations for Extended Car Warranties

Before you purchase GEICO mechanical breakdown insurance, it’s smart to compare GEICO’s quotes and coverage against third-party alternatives to be sure you’re making the right decision for your vehicle.

Our research team examined every major auto warranty company on the market and found a few providers that stood out from the pack in terms of quality, coverage, customer service, and cost. Read on to find out more about two of our top recommended providers: Endurance and CarShield.

Endurance: Best Coverage

In our research, we determined Endurance to be the overall best third-party provider due to its positive customer service reputation, extensive benefits package, and high-quality coverage plans. Although Endurance extended car warranties can be on the more expensive side, for many drivers, the price is worth it to receive the best coverage available. 

Endurance has six coverage options to choose from, including an exclusionary plan that’s similar to GEICO mechanical breakdown insurance. While an Endurance warranty may cost much more than MBI, it also comes with substantially better perks.

Every Endurance contract includes a free year of Endurance Elite Benefits, which give drivers these perks:

  • 24/7 roadside assistance
  • Key fob replacements
  • Total loss protection
  • Collision discount
  • Tire repairs and replacements
  • Endurance mobile app

You can learn more in our Endurance extended warranty review.

Endurance is our pick for best coverage with its comprehensive warranty options.

CarShield: Best Value

While Endurance is the best overall provider, CarShield offers customers the lowest-priced payment plans. If you’re not eligible for GEICO mechanical breakdown insurance, CarShield may be your best bet to get comprehensive coverage on a budget.

CarShield offers customers six plans that range from comprehensive bumper-to-bumper coverage to a basic powertrain warranty. Plus, CarShield is one of the only reputable extended car warranty companies that offer specialty coverage for motorcycles and ATVs. All CarShield plans come with benefits, including roadside assistance, rental car reimbursement, and courtesy towing.

See more about this provider by reading our full CarShield review.

Our research found this provider to be the most affordable. Plus, it offers monthly plans.

Final Thoughts: Is GEICO's Mechanical Breakdown Insurance Worth It?

If you’re a GEICO policyholder with a new car, adding MBI may be a great way to get extended vehicle protection at a low price point. GEICO mechanical breakdown insurance policies are comprehensive and can provide valuable coverage to supplement your vehicle’s factory warranty. Plus, they are backed by a reputable leading car insurance provider, so you can trust the company will pay out covered claims.

However, if you aren’t already a GEICO policyholder or if your car is older than 15 months/15,000 miles, you won’t be eligible for GEICO mechanical breakdown insurance. You may still be able to purchase MBI If you’re a policyholder with AAA, Allstate, Liberty Mutual, or Mercury Insurance, as these are the only other leading insurance providers that offer this type of coverage. But if not, your best bet is to look into third-party alternatives such as Endurance and CarShield.

Q & A

Here are some frequently asked questions about GEICO mechanical breakdown insurance.

Are mechanical problems covered by insurance? 

Unless you have MBI coverage, an insurer will only handle car repairs covered under comprehensive coverage or collision insurance. That usually entails damage from a car accident, acts of God, theft, or vandalism.   

What does a mechanical warranty cover?

A mechanical warranty is similar to a best new car warranty that covers defective components and poor workmanship. Mechanical breakdown coverage operates similarly and often excludes common maintenance services, also like a mechanical warranty. 

What is considered a mechanical breakdown? 

A mechanical breakdown is when a moving component or electronic part of a vehicle fails or becomes defective. Mechanical breakdowns are usually not handled by insurance coverage unless caused by an accident or other scenarios outlined in an auto policy.  

Does GEICO offer mechanical breakdown insurance

GEICO does still sell MBI policies to eligible vehicles.


Our review team prides itself on sharing accurate and unbiased information with consumers. We have accumulated data from dozens of extended auto warranty companies to formulate our rankings of the industry’s best providers. Companies receive a score out of 5.0 overall, as well as a rating in each of the following categories:

  • Price: Comparing providers can be difficult due to the many factors that influence cost. To determine this score, we employ a secret shopper analysis using different vehicles, mileages, warranty plans, and locations.
  • Coverage: A wide variety of coverage is essential to support the differing needs of customers. We take into account the number of extended car warranty plans available, term limits, exclusions, and additional benefits.
  • Customer Service: The level of customer service and care provided by an extended warranty company is an important consideration. Our review team sifts through customer reviews and complaints from reputable sources such as the Better Business Bureau (BBB) and Trustpilot. We also consider the responsiveness of each company’s customer service team based on our secret shopper analysis.
  • Reputation: Good extended warranty providers consistently provide quality experiences. Our team takes into account BBB ratings and the company’s history of reliable service when giving this score.
  • Transparency: Customers value a commitment to open and honest communication when it comes to vehicle service contracts. Our team of experts takes into account the availability of money-back guarantees and sample contracts.