Quote:
Originally Posted by ft1330
This is most likely a scam. How can they cover anything when the fee is only $100 a year and so few people elect it? Any repair on a BMW (or any car really) is going to reach 4 figures easily. Another one of those too good to be true deals.
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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.