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Discussion Starter #1
Hi .
I purchased BMW X5. 40e 2017 brand new and called Geico for quotes.
I am as very surprised that Geico offered me brake assistance for 7 years or 100000 miles for 56$ for 6 month it similar as extended warranty
I just would like to share may be it will be useful
Thank you
 

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Discussion Starter #3
For lease it doesn’t makes sense .But if you buy it it will make a perfect sense


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Hi .
I purchased BMW X5. 40e 2017 brand new and called Geico for quotes.
I am as very surprised that Geico offered me brake assistance for 7 years or 100000 miles for 56$ for 6 month it similar as extended warranty
I just would like to share may be it will be useful
Thank you
Since the "devil is in the details" so to speak, I did a quick google search to see what this covers as I was curious. It doesnt really say in the 2 minute google search I did, but I DID find their claims process, which I will copy here.

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Understanding Mechanical Breakdown Claims
If your vehicle is protected by GEICO's Mechanical Breakdown Insurance (MBI), you're covered for repairs (excluding maintenance or wear and tear) to all mechanical parts of the car. We realize how inconvenient it can be to have your vehicle out of service, so we strive to get you back on the road as soon as possible with a quality repair.

The following tips will help make your MBI claim experience quick and easy:

DO NOT allow any repairs to begin until you obtain authorization from GEICO. If you fail to give GEICO the opportunity to investigate thoroughly before repairs begin, you may jeopardize your claim.
You can report your MBI claim online or call us at (800) 443-7411 anytime. Either way, you can report your claim in about 15 minutes, 24 hours a day, 7 days a week. As you begin the reporting process, please make sure that you have as much information as possible available about your mechanical breakdown.
Once you report the breakdown, one of our claim examiners will call you within 24 hours to explain the MBI claim process. This examiner will keep you informed throughout the repair process and will ensure that your vehicle is repaired properly.
You may take your vehicle to the repair facility of your choice. Tell the repair facility that you have MBI and give them your GEICO policy number. Instruct them to call us at (800) 443-7411 with a diagnosis of the problem and a repair estimate before they begin to fix your vehicle.
Once we hear from the repair facility, your examiner will determine if a physical inspection of the vehicle is necessary. Inspections usually occur within 24 hours.
GEICO will pay the repair facility directly for covered claims. You will need to pay your $250 deductible directly to the repair facility. Note: if you have multiple unrelated problems, you will have to pay a separate deductible for each problem. For example, if your brakes and your air conditioner both need to be fixed, you would have a $250 deductible for each repair.
If your repair facility is unable to diagnose any mechanical failure with your vehicle, GEICO will not pay for any diagnostic fees.
 

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Discussion Starter #5
I just checked my deductible and didn’t see any 250$ in my policy it states the full amount


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For lease it doesn’t makes sense...
That's most true for committed serial lessees, and BMW has many such people.

But consider lease buyouts, more typical from Honda and Toyota Financial (who are more generous in subverting, in my experience).

My BMW experience was that GEICO MBI was only available on a newish car still under OEM warranty, and that my (rather small) semi-annual payments will run in parallel to the OEM warranty. In other words, IIRC, I had to opt into MBI when the car had less than 15mo/15k. You can't opt into GEICO MBI when you're at 3y/30k, even if buying out your lease seems very attractive at the time because you love your car. GEICO will not attach MBI to such an "old" car, regardless of how you paid for it. This is how GEICO eliminates moral hazard.

The 7y/100k coverage doesn't kick in until after the 4y/50k OEM warranty expires, so BMW owns most of the early issues. Since I drive around 14k/yr, this has the net effect of doubling my OEM warranty, at a fraction of the price of the BMW extended warranty.

Of course GEICO has risks too. Presumably, they could remove the MBI product, change its terms in the out years, or drop the insured. Such is life.
 
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