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Originally Posted by marlin2911
The thing is, they have such a large consumer base to aggregate the premiums out that it makes sense - basically they're combining this warranty with people with Civic's and Altimas and every other car out there - actuarially, I can see where the premium makes sense. Not to mention they do sneak this coverage onto people's bill, which might help with the premium reserving for the claims. And believe me, state DOI's wouldn't let it go through if it was a scam - it would get struck down so fast and Geico would get hit with market conduct fines if they didn't follow through (I know this from working in insurance already). But I definately see your point - it does almost seem too good to be true.
There's been some discussion about it in the E90 boards as well as a ton of other makes/models, and it seems to be legit from what I see. You take the car to the dealer, tell the service department to call Geico to get paid, and then you just pay the dealer $250 out of pocket. Seems simple enough, and I can't really find complaints online about it...was hoping someone with past experience might see this.
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Well, I used the term "scam" in the wider sense, not in the sense of an obvious criminal activity. As in, they would have you believe that everything is covered except for the wear and tear items, and the fine prints are worded in such a way that it may seem that way, until you try to use it and you realize that there are huge exclusions. With insurance you don't know how bad it is until you really try to use it...
That's why I don't understand people who review insurance companies and they never made a claim. Basically it's like reviewing how quickly and efficiently they bill you. Usually this is done very well.
I was also unable to find reviews of people who actually had to use it. First your car needs to be out of its warranty... This may take a while to get feedback on this.
I guess one obvious limitation is that you need to buy the coverage in the first 2 years, and have an uninterrupted GEICO insurance policy on the car for as long as you want this coverage. If they jack up your rates and you want to move out you lose the coverage before you could actually use it. It's great for them because it ensures forced loyalty. Not so great for you, especially that I found GEICO to be the most expensive insurer in my case.