WalletHub, Financial Company
@WalletHub
No, Geico does not offer extended warranties. Although Geico does not have an extended warranty plan, it does sell mechanical breakdown insurance, which is similar to an extended warranty and covers repairs to all mechanical parts of the vehicle. To qualify, cars must be new or leased, less than 15 months old, and have less than 15,000 miles.
Geico mechanical breakdown insurance (MBI) is an inexpensive alternative to an extended warranty. Extended warranties usually cost around $1,500, whereas the price of MBI is often about $100 annually.
For more information, check out WalletHub’s guides to mechanical breakdown insurance and extended car warranties.
R. Joseph Ritter Jr., Financial Advisor
@RRitter
If your state laws allow you to keep the vehicle when it is deemed a total loss, the insurance company may pay the actual cash value of the vehicle, minus your deductible and minus a fair salvage amount. This could wind up being a very small amount of money. I can definitely understand wanting to keep a good car because it is expensive to buy something else and not everyone has the cash to do that. Something to consider is insuring the vehicle after the transaction is complete. Will the same company continue to insure it? Will you have to get insurance from another company? Will another insurance company insure the vehicle? These are questions to answer before moving ahead.
People also ask
Are extended car warranties worth it?
Extended car warranties are worth it if a driver doesn’t carry sufficient savings to pay for vehicle system repairs or is worried about their car’s reliability. But for most drivers, extended car warranties go unused, so the potential benefits are not enough to justify the upfront cost.
When An Extended Car Warranty Is Worth It
A good time to consider the value of an extended warranty is when the manufacturer’s warranty on your vehicle has...
read full answerHow much does an extended car warranty cost?
An extended car warranty costs around $1,500. The exact cost of an extended car warranty depends on several factors, including the condition of the car, the car’s mileage, and the amount of coverage included in the warranty.
Factors That Affect Extended Car Warranty Cost
An extended car warranty pays for repairs to a car’s major systems if they malfunction. If you drive an older car or a car with higher mileage, your warranty will be...
read full answerDoes Geico offer a discount for new cars?
Geico offers a new car discount of up to 15% if your vehicle is three model years old or newer. If you are already a Geico customer, you can add or replace a car on your policy online. Make sure to check that the new car discount is applied to your policy under “current discounts” in your customer dashboard. If you don’t see it automatically applied, you’ll have to call customer service at (800)-207-7847 to have your rate adjusted.
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