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Insurance companies exist to make profit and nothing else. Keep in mind that a requirement (if it is one) of switching insurance over to them can be costly. Covering a single car with no multi-policy discount is like buying a can of soda at 7-11 instead of in bulk at Costco. High premiums will augment the true cost of the MBI. When it comes to numbers, insurance companies are king. Look at their profits and lobbying power. I'd be careful on switching carriers just to get "cheap" insurance for extra coverage that may not be necessary.
This plan seems very similar to a protection plan/extended coverage plan a finance manager sells when buying a car. The difference is that Geico is a large company and can sell it cheaper.
Kicker: If it's a new program, you (consumer) may be able to benefit from it. They have no baseline of numbers and no idea if they will lose or make money. You can potentially come out on top at Geico's expense.
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