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Auto breakdown repair insurance?
Posted by: steve...
Date: April 28, 2022 11:41AM
There seems to be a LOT of advertising for it. Must be profitable for the insurance companies.

I've never had it or known anyone who did - that I'm aware of. What's the forum consensus?





Northern California Coast



Edited 1 time(s). Last edit at 04/28/2022 11:49AM by steve....
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Re: Auto breakdown insurance?
Posted by: raz
Date: April 28, 2022 11:44AM
AAA member for decades. They got me a tow when clipped a curb in a bad section of New York at 2am. Their other services (passport pictures, license renewal, title transfer. …) are a bonus.



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Embarassing myself on the Internet since 1978.
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Re: Auto breakdown repair insurance?
Posted by: Acer
Date: April 28, 2022 11:57AM
I am glad to have AAA tow and road assistance. I have used it a couple of times in the past years, including at least one 30+ mile tow. I also pay the $10 or whatever for Geico's roadside assistance, which I used once.

I have never paid for repair insurance. Once a car comes of age to actually need regular repairs outside of warranty, there has to be no way it can be priced to the consumer's advantage. I "self insure" for car repairs.
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Re: Auto breakdown repair insurance?
Posted by: Ken Sp.
Date: April 28, 2022 12:04PM
Most repair insurance, not towing, are scams.
The only for sure ones are offered directly by the maker of your car.
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Re: Auto breakdown repair insurance?
Posted by: mattkime
Date: April 28, 2022 12:05PM
Repair insurance is unlikely to make sense. My auto insurance includes towing so AAA has little to offer me



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Re: Auto breakdown repair insurance?
Posted by: Speedy
Date: April 28, 2022 12:05PM
I get several calls a day trying to sell me a warranty so I guess it’s profitable enough.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Auto breakdown repair insurance?
Posted by: jdc
Date: April 28, 2022 12:30PM
I get several SCAM calls a day trying to sell me a warranty so I guess it’s profitable enough.

FTFY.





Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Auto breakdown repair insurance?
Posted by: S. Pupp
Date: April 28, 2022 12:30PM
My wife was offered “mechanical breakdown” insurance from GEICO. They said that it is for new cars only, and is essentially an extended warranty. In other words, for her new VW Gold with a 4 year factory warranty, she’d be paying for four years before the “mechanical breakdown insurance” kicked in. GEICO is counting on people trading in their cars before the factory warranties expire.
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Re: Auto breakdown repair insurance?
Posted by: Speedy
Date: April 28, 2022 01:13PM
Quote
S. Pupp
My wife was offered “mechanical breakdown” insurance from GEICO. They said that it is for new cars only, and is essentially an extended warranty. In other words, for her new VW Gold with a 4 year factory warranty, she’d be paying for four years before the “mechanical breakdown insurance” kicked in. GEICO is counting on people trading in their cars before the factory warranties expire.

Is that Gold an EV? If not, better buy the warranty.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Auto breakdown repair insurance?
Posted by: bobinmurphy
Date: April 28, 2022 02:16PM
Quote
steve...
There seems to be a LOT of advertising for it. Must be profitable for the insurance companies.

I've never had it or known anyone who did - that I'm aware of. What's the forum consensus?

Consider this: For them to make money they have to have a LOT more coming in from premiums than they're paying out in claims. Their fine print usually excludes older vehicles and those with a history of needing lots of repairs. So there are a lot of people paying for something they may never use.

I also have to wonder about the "real customers" in their commercials who say "such-and-such saved me $5,000 on a new transmission". What I wonder is how much he paid monthly and for how long and did he deduct that amount from the repair bill before claiming he "saved" $5,000? And just how was he driving that vehicle that may have lead to a transmission failure?
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Re: Auto breakdown repair insurance?
Posted by: mikebw
Date: April 28, 2022 02:17PM
Quote
Speedy
Quote
S. Pupp
My wife was offered “mechanical breakdown” insurance from GEICO. They said that it is for new cars only, and is essentially an extended warranty. In other words, for her new VW Gold with a 4 year factory warranty, she’d be paying for four years before the “mechanical breakdown insurance” kicked in. GEICO is counting on people trading in their cars before the factory warranties expire.

Is that Gold an EV? If not, better buy the warranty.

Heh, not a terrible name for an EV though, aside from the apparent potential for unintentional typos.
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Re: Auto breakdown repair insurance?
Posted by: Yoyodyne ArtWorks
Date: April 28, 2022 05:04PM
Quote
S. Pupp
My wife was offered “mechanical breakdown” insurance from GEICO. They said that it is for new cars only, and is essentially an extended warranty. In other words, for her new VW Gold with a 4 year factory warranty, she’d be paying for four years before the “mechanical breakdown insurance” kicked in. GEICO is counting on people trading in their cars before the factory warranties expire.

I have GEICO MBI on my 2017 VW Golf, it’s only about $50 per year. The main VW warranty was 36 months/36,000 miles and I blew through that in about 2 1/2 years; the powertrain warranty is 60 months/60,000 miles and I’ll be through that in four months. The MBI coverage is very reasonable compared to the $2000 extended warranties offered by many third-party companies; it covers your vehicle for 7 years or 100,000 miles (whichever comes first).

The only drawbacks are the $250 deductible, and the fact that you must continue to insure the car with GEICO to keep the MBI coverage in effect. I was concerned that GEICO would take advantage of that latter requirement to jack up my rates over the years, but that has not happened.

Hopefully I’ll never need to use the MBI coverage but it’s nice to know it’s there.



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Re: Auto breakdown repair insurance?
Posted by: Cary
Date: April 28, 2022 08:37PM
As the owner of a repair shop, I have mixed feelings. Some companies are good. Others, not so good

It seems to me that the pay monthly forever companies (looking at you, Carshield) put up roadblocks to approving repairs. But, not always.

Geico MBI has been easy to work with. Zurich has been great.

A lot depends on how long you've had the coverage, and how close to the end of term you are.

We spend a lot of time on hold, and negotiating with them...
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Re: Auto breakdown repair insurance?
Posted by: mattkime
Date: April 28, 2022 09:17PM
Its interesting to hear someone (from WI?) has had a good experience with Geico. They over charged and under insured me.
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Re: Auto breakdown repair insurance?
Posted by: MrNoBody
Date: April 29, 2022 06:27AM
I guess it’s profitable enough.
Look at the target market. Used, 'prestige' vehicles bought with high interest financing.
The 'repair insurance' is just another financial burden on a consumer with
shaky finances.



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