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.
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.
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.
A good time to consider the value of an extended warranty is when the manufacturer’s warranty on your vehicle has expired or will expire soon. This typically happens after three years or 36,000 miles, depending on which comes first. If you plan on keeping your car beyond the manufacturer warranty’s expiration, then purchasing an extended warranty might give you peace of mind moving forward.
An extended warranty might also be worth it if you’re concerned about your ability to pay for major mechanical repairs in the future. Car repairs cost about $400 on average, which is less than the $1,500 average for an extended warranty. On the other hand, the least common and most catastrophic mechanical failures can often cost several thousands of dollars to repair.
If your car isn’t very reliable and you’re not in the financial position to risk either paying for repairs or replacing the car yourself, it might be worth it to pay a higher upfront cost for protection through an extended warranty.
When An Extended Car Warranty Isn’t Worth It
Your car is not reliable
Your car is not worth very much
Your car is still covered by the manufacturer’s warranty
You have a large enough emergency fund to pay for major vehicle repairs
Bear in mind that you don’t have to purchase an extended warranty when you buy your car. It’s likely a smart move for you to wait until the manufacturer’s warranty is about to expire to evaluate your situation and determine whether you want to pay for an extended warranty. To learn more, check out WalletHub’s guide to the best extended car warranties.
An extended car warranty costs $1,500 on average. The cost of an extended car warranty can be anywhere from $1,000 to $5,000 depending on several factors, including the condition of the car, the car’s mileage, and the amount of coverage included in the warranty.
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 more expensive because your car is more likely to experience mechanical problems. Similarly, the more coverage that you include in your warranty, the more you’re going to pay.
How to Shop for an Extended Car Warranty
If you want to purchase an extended warranty for your car, you should get quotes from multiple sources in order to find the best price. You can purchase an extended warranty from your car’s manufacturer or a third-party company, and the pricing is generally the same between the two. However, customer satisfaction tends to be higher for warranties from the manufacturer.
Many insurance companies also offer an alternative to extended warranties called mechanical breakdown insurance (MBI). MBI provides similar coverage and only costs about $100 per year.
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.… read full answer
If you’re not already insured with Geico, you can get a free online quote before purchasing the car or a policy. It’s important to know how much insurance will cost for your particular vehicle since prices vary a lot by car type. When you are ready to buy, you can pay for your policy and get proof of insurance the same day.
Safety features common to new cars could add even more discounts to your Geico policy. Additional airbags, anti-theft systems, and anti-lock brakes could save you between 5% to 25% on certain types of coverage, like collision, comprehensive, and personal injury.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by a WalletHub user.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.