Mechanical Breakdown Insurance

Mechanical Breakdown Insurance

Hello everyone, I pick up my Model 3 in two days! I'm setting up my insurance and was asked if I want Mechanical Breakdown Insurance. I hear it's similar to an extended warranty. Have any of you purchased this option when shopping for insurance? Would you recommend it? I plan on owning the car for 10 years so it might be worth having after the factory warranty expires. Thanks!

Magic 8 Ball | 27 June 2018

Read very carefully and understand exactly what it covers.

mntlvr23 | 28 June 2018

My view is to only buy insurance against something that would be catastrophic and would put your financial future in danger - so no I would not

spuzzz123 | 28 June 2018

Yeah be really careful with those aftermarket warranties. They are really smart about how they word the language on them so that it sounds like almost everything is covered, but there always seem to be loopholes for the most common incidents. My wife, against my vehement objections, bought a 7 year extended warranty at time of purchase of her subaru. She loved her car and said she definitely wanted to keep it for at least 7 years. Fine, but you are now really committed to that decision aren't you? And what if you total it after 3 years, that's money thrown away isn't it? A year later I got my model 3, and she really wants one now. Sorry honey, you are stuck with your Subaru for 6 more years. I'm sure the 2024 Model 3 will be fantastic!

On top of all that, I'm sure there will be aftermarket warranty offers coming to you at the time your factory warranty expires. I just see no value in prepaying for a warranty you won't need for 5 years.

Lorenzryanc | 28 June 2018

It'll probably cover engine breakdown, thrown rods, oil tank leak, fuel tank ruptures, transmission failures, and dashboard malfunctions. From what I've seen on the forums, IF you have a M3 that breaks down, Tesla picks you up and fixes. On a plus side, it seems people who've had issues have them pretty quickly, sub-1000miles.

macmcintire | 28 June 2018

Thank you for the info. I'm going to skip the mechanical breakdown insurance!

itsnorm | 30 August 2019

@macmcintire Last year you skipped GEICO's mechanical breakdown insurance. I assume you're getting close to the 15,000 mile mark on your M3. Have you rethought your decision? I'm approaching my deadline, and seriously thinking about it. My quote is $110/year, which means I will have paid $550 by the time I reach the end of the Tesla warranty (June 2023). Then it's presumably still $110/year for the next two years. So extending my warranty for two more years will essentially cost $770. I guess I'm trying to figure out if $770 is worth it for the two extra years.

SlyB. | 8 November 2019

Same here, I have few months to add before I'm no longer eligible.( purchased my 3 in December of 2018)
I'm looking at $120 per year.

Notes from Geico site:
What is Mechanical Breakdown Insurance (MBI)?

Mechanical Breakdown Insurance covers many mechanical repairs to your car, protecting you from expensive repair bills. This coverage is only available for vehicles with less than 15,000 miles that have been purchased within the last 15 months. A $250 deductible per claim applies. Mechanical Breakdown Insurance is similar to a dealer's extended warranty protection. It's in excess of coverage provided by the manufacturer's warranty.

Mechanical Breakdown Insurance covers repairs to the following systems:

Engine Steering Air Conditioning
Transmission Cooling Brakes
Drive Axle Suspension Electrical

EXCLUSIONS: MBI does not include regular maintenance services such as tune-ups, suspension alignment, wheel balancing, filters, lubrication, coolant and fluids, spark plugs, brake pads and lining, brake shoes and tires (includes tire wear and/or tire damage). Breakdown repairs made necessary by intentional damage, rust and oxidation, misuse, or improper maintenance are not covered. Mechanical Breakdown coverage is in excess of coverage provided by the manufacturer's warranty.

So by the looks of it, it appears it would cover everything beside motors and battery..........which Tesla covers for 8 years and 120k miles.

Think its worth it.

bjrosen | 8 November 2019

No no no. Extended warranties are always a bad deal but doubly so if they are from a third party and triply so for a Tesla. A couple of you have mentioned GEICO, an awful insurance company. I had them for a little while and made a claim for some rear end damage. They require you to go to one of their shops, you can't take it to a quality shop. With a conventional car their shop has the ability to fix it even though they'll probably use cheap aftermarket parts instead of OEM parts but you can't do that with a Tesla. Tesla bodywork can only be done at Tesla or a select few Tesla certified shops and everything else can only be done by Tesla. I'd bet if you made a claim through any third party warranty company, and especially GEICO, they will either low ball you are refuse to honor it at all. Save your money and pay for the repairs yourself.