As most people own cars nowadays, it has become really important to do proper insurance and maintain its warranty period. Insurance is made to provide coverage to car accidents and tragedies. Car warranty is different as they lay coverage to parts of the car that turn faulty or stop working.
Geico Mechanical Breakdown Insurance vs Extended Warranty
The main difference between Geico Mechanical Breakdown Insurance and Extended warranty is that Geico Mechanical Breakdown Insurance is an insurance policy that covers the accidents and tragic incidents that happened to the car whereas an Extended warranty is an extension to the car’s warranty period that deals with automotive faults or poor workmanship.
The Geico Mechanical Breakdown Insurance is short-formed as MBI. It is an insurance service to a car that covers all the basic policies and abides by the rules of the insurance policy. MBI is done to protect the cars which carry out an accident or other fails with less expenditure.
It is a practice of increasing the warranty period of a car as which depends on the extra amount paid on the purchase of the new vehicle. An extended warranty on a car covers only the automotive defects that are expected to come due to either poor workmanship or any catch in manufacturing.
Comparison Table Between Geico Mechanical Breakdown Insurance and Extended Warranty
| Parameters of Comparison | Geico Mechanical Breakdown Insurance | Extended Warranty |
| Type | Geico Mechanical Breakdown Insurance is an insurance policy on a car. | An extended warranty is the extension in the warranty period of a car. |
| Coverage | It is based upon the reassembling of the car after an accident or other tragic incidents. | Extended warranty policy covers all the warranty rules of a car until a specific period of time. |
| Happening | The Geico Mechanical Breakdown Insurance is done due to a known cause that is unexpected. | An extended warranty is made to keep the car under warranty for fixing expected problems. |
| Fault | Geico Mechanical Breakdown Insurance is claimed only when the fault is done by the driver. | The Extended warranty does not claim the faults of the driver but due to poor manufacturing of any part. |
| Expenses | The Geico Mechanical Breakdown Insurance is less expensive than the Extended warranty. | An extended warranty is more expensive than Insurances like MBI. |
What is Geico Mechanical Breakdown Insurance?
Geico Mechanical Breakdown Insurance is an insurance policy that car owners do to protect their cars from unwanted and big expenses that happen as a result of unexpected tragic incidents like accidents and tragic happenings related to fire, escape, etc.
The MBI insurance policy is also variable in amounts that are a bit affordable and more reliable. It is a very flexible insurance scheme that gets claimed only when an unexpected tragic event occurs. The MBI insurance policy also asks for some amount every year to renew the insurance claim. Whenever the car malfunctions and leads to a serious accident, the Geico Mechanical Breakdown Insurance helps the owner save a lot of expense on the car’s rework. However, the catch lies here. It does not always help the owner.
The dependency is totally on the date of the car owner. Whenever a part of the car malfunctions or becomes faulty due to poor workmanship or car manufacturing, the MBI insurance policy does not work. In such cases, the owner has to make it well by paying extra to the company’s workplace. If the car’s expense exceeds a prementioned amount by the MBI, the company does not claim the insurance.
What is Extended Warranty?
An extended warranty is the practice of occupying an extension in the warranty period of the car. Whenever a car is purchased by a customer, he or she gets a warranty period in which the expected malfunctions are repaired and taken care of without paying the expenses.
For example, the faulty parts can be used in a car during its manufacturing or some wear and tear of the parts happen due to poor workmanship and manufacturing defects. All these known causes of the car can be claimed without paying a single penny. This is how a warranty on a car works. When we talk about an Extended warranty, we can get more time on the car’s warranty.
The warranty can be claimed on a car even after the original warranty’s expiry. This is how an Extended warranty works but affording an Extended warranty on a car is more challenging because it demands large expenses and proper criteria of the claim as decided by the brand itself. There is also a catch in the warranty claim as they do not fix regular car parts like brake pads and car tires. Extended warranty is offered by either third-party companies or the car brand itself.
Main Difference Between Geico Mechanical Breakdown Insurance and Extended Warranty
- The Geico Mechanical Breakdown Insurance covers several aspects like liability coverage, collision coverage, and other complex coverages whereas an Extended warranty does not.
- The Geico Mechanical Breakdown Insurance does not support claims over vehicle parts like engine, exhausts, and accessories whereas warranty or Extended warranty claims these.
- Geico Mechanical Breakdown Insurance is way more affordable than an Extended warranty whereas an Extended warranty charges huge deposits.
- The Geico Mechanical Breakdown Insurance is more flexible whereas Extended warranty claims are strict and abiding.
- The Geico Mechanical Breakdown Policy has a drawback as it works only when the car’s expense after mishappenings is under a margin given by the policy itself whereas an Extended warranty doesn’t.
Conclusion
Owning a car nowadays is not at all easy and affordable but still a lot of policies and techniques like car loans, etc are developed so that cars can be owned in a simple way. However, the insurance policies and the warranty periods of a car are what make the owner more secure about the car’s performance. After all, the conclusion that we can draw from the above research is that we should always claim the warranty just after purchasing the car and should not go for the extended warranty. Rather than that, insurance policies can be used, thus saving money.
References
- https://www.sciencedirect.com/science/article/pii/S0749597884710466
- https://dl.acm.org/doi/abs/10.1145/37888.37940