GEICO's Mechanical Breakdown Insurance (MBI) Offers Peace of Mind for Auto Owners

CHEVY CHASE, Md., June 27 -- GEICO, nearing the sale of its one millionth mechanical breakdown insurance (MBI) policy, reminds auto owners of the benefits of this unique coverage.

GEICO's mechanical breakdown insurance (MBI) policy is an all-risk policy designed to protect policyholders after the car's warranty is up. After a $250 deductible on a covered loss, GEICO MBI covers repairs to all mechanical parts of the car except for maintenance and wear and tear.

GEICO's assistant vice president of MBI, Suzanne Worthen, said, "Our coverage is very broad. It pays for covered mechanical or electrical repairs to a new car. It also covers a car that is leased with the option to buy, with the insured being the first titleholder. This coverage helps protect our MBI policyholders from being saddled with unanticipated and expensive repair bills."

GEICO notes that the vehicle must be less than 15 months old and have an odometer reading of less than 15,000 miles at the time the coverage is initially purchased.

Glenn Cropp, MBI claims manager, further explained, "GEICO's MBI is structured to be better than an extended warranty. It provides better protection and is less expensive than the typical dealer extended warranty. MBI coverage includes all parts and systems, not just the specific list of items covered by most dealer warranties. In the long run, our policy saves auto owners money because they pay only a small premium each policy period instead of a large lump-sum payment up front."

Chad Pence, centralized services reports and controls manager, added, "GEICO's MBI is a great policy and really comes in handy when they need it most. Our MBI counselors handle claims, investigate losses and negotiate the cost of repairs to make sure GEICO pays a fair price on claims. GEICO also allows auto owners to swap their extended warranty for our MBI policy if they have already purchased their dealer's extended warranty recently."

As GEICO CEO Tony Nicely has said on numerous occasions, "Mechanical breakdown insurance buys peace of mind. It is a trusted product that customers like and need. We expect to reach our one millionth MBI policyholder before the end of the summer, which is a sign of its growing importance for auto owners."

For more information about mechanical breakdown insurance, please visit http://www.geico.com/auto/safety/mbi.htm.

GEICO (Government Employees Insurance Company) is the fourth largest private passenger auto insurer in the United States. It provides auto insurance coverage for more than 7 million policyholders and insures more than 11 million vehicles. GEICO is a member of the Berkshire Hathaway group of companies. Rated A++ for financial stability by A.M. Best Company, GEICO keeps its rates low by dealing directly with the customer. GEICO provides consumers with outstanding sales, service and claims capabilities on its geico.com Web site 24 hours a day, seven days a week. Consumers may also contact the company at its toll free 1-800-841-3000 number. 15 minutes could save you 15% on car insurance. For more information, go to http://www.geico.com/.