Is Mechanical Breakdown Insurance (California MBI) a Scam?

Mechanical Breakdown Insurance (MBI) is a vehicle protection product unique to California, regulated by the California Department of Insurance rather than the Department of Motor Vehicles. Unlike vehicle service contracts sold in other states, California MBI is an insurance product subject to state insurance law. Major insurers offering MBI in California include GEICO. MBI is available only for newer, lower-mileage vehicles and must be purchased within a set period of the vehicle's original sale. California consumers have stronger regulatory protections for MBI than for VSCs sold in other states.