WalletHub, Financial Company
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
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.
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