Blown Engine Blues: Are You Covered By Auto Insurance?

Whether auto insurance covers a blown engine depends on the type of insurance you have and what caused the engine to blow out. If you have comprehensive coverage and collision coverage, your engine repairs will generally be covered if the engine is damaged in an accident or due to an event outside of your control, such as a fallen tree. Mechanical breakdown insurance (MBI) is another option that covers engine repairs not covered by your warranty. However, MBI is not as commonly available as comprehensive or collision coverage and may have vehicle age requirements.

Collision coverage

If you have collision coverage, your car will be covered in most situations, including a blown engine, as long as the blown engine is not the result of neglect or wear and tear. Collision coverage is subject to deductibles, which will affect your rates.

If your engine is damaged in an accident or due to an event outside of your control, such as a tree limb falling on your vehicle, collision coverage will generally cover the cost of repairs. However, if your engine suffers a mechanical failure or breaks down due to normal wear and tear, collision coverage will not cover the cost of repairs or replacement.

If you have both collision and comprehensive coverage, your car will be well-protected against most issues, including a blown engine, as long as it is not caused by neglect.

Comprehensive coverage

If you have comprehensive coverage, you're generally covered for engine repairs if the engine is damaged by an event outside of your control, such as vandalism, extreme weather conditions, or a collision with an animal. Comprehensive coverage can also include add-ons such as rental car reimbursement, rideshare insurance, and loan-lease payoff.

However, it's important to note that comprehensive coverage will not cover a blown engine that's the result of mechanical failure or wear and tear. In such cases, you may need to purchase additional coverage, such as mechanical breakdown insurance (MBI), to protect yourself from high repair costs.

Before making a claim, it's essential to review your policy details and understand what is covered and what is not. If you have comprehensive coverage and your engine is damaged due to an event outside of your control, you can contact your insurer to initiate the claims process. They will guide you through the specific steps, including speaking with a claims adjuster who will collect information and verify the damage.

Mechanical breakdown insurance

MBI is available for new or leased cars that are less than 15 months old and have less than 15,000 miles on the clock. The customer must also be the first owner of the vehicle. Once purchased, MBI can be renewed for up to seven years or 100,000 miles, whichever comes first. After a $250 deductible on a covered loss, car repairs to most original mechanical parts of the car (except for maintenance and wear and tear) are covered.

MBI can cost around $100 a year, though the price varies depending on your provider and your car—its make, model, mileage, etc. So if you have an electric car, you’ll pay a different rate than someone with a Toyota Civic or a Ferrari. But keep in mind that MBI often comes with a high deductible, which means the policyholder may end up paying out-of-pocket for a lot of expenses.

Full coverage

If you have full coverage, your insurance policy will cover engine failure directly caused by an accident or other situations described in your policy. However, normal wear and tear or mechanical problems are not covered.

Comprehensive auto insurance covers damage to a vehicle that does not result from a driving accident, such as theft, falling objects, natural disasters, fire, or explosion. For example, if your engine was damaged by a covered event, such as a branch falling on your car during a storm, it should be covered by comprehensive insurance. However, you might need additional documentation to prove that the engine was sound before the accident.

Mechanical breakdown insurance (MBI) is an optional coverage offered by some car insurance companies. MBI is an alternative to an extended warranty and may have broader coverage. With mechanical breakdown insurance, engine failure is covered, but normal maintenance and wear and tear items, like brakes, are not. Like a warranty, mechanical breakdown insurance only provides coverage for a specific period of time and is often based on how many miles are on your vehicle.

Extended warranties

Manufacturer Warranties

Manufacturer warranties typically come in two types: the initial, comprehensive bumper-to-bumper coverage that insures you against all material defects in manufacturing, usually for around 3 years or 36,000 miles. Some manufacturers offer longer warranties, such as Hyundai's 5-year, 60,000-mile bumper-to-bumper warranty.

The second type is a post-purchase extended warranty that covers your car after the initial manufacturer's warranty expires. This can be an extension of the same coverage with some additional exclusions or more basic coverage, such as powertrain coverage, which covers the engine depending on the cause of failure. Manufacturer warranties tend to be more forgiving than third-party companies and offer more leeway in terms of repairs.

Third-Party Extended Warranties

Third-party extended warranties are different from manufacturer warranties in that they are selling you a vehicle service contract rather than a promise against material defects in workmanship. This means that you are contractually obligated to perform certain tasks, such as regular oil changes and routine service work, for the warranty to remain valid. Some third-party companies will try to avoid paying your claim if you don't follow their contract exactly, so it's important to read the fine print carefully.

Coverage for Rebuilt Engines

Some extended warranty providers may not cover vehicles with rebuilt engines, but there are companies like Endurance that do offer coverage for these cases. If you're looking for an extended warranty for a rebuilt engine, you'll need to provide documentation detailing the rebuild process, including which parts were used and whether they were new or salvaged. You'll also need to have a comprehensive inspection performed by a reputable mechanic or organisation.

Cost Implications of Extended Warranties

While extended warranties can provide peace of mind, they come at a cost. Providers will consider factors such as the likelihood of unexpected component failure and the potential severity of repairs when pricing your coverage. If your vehicle has had a major failure or used salvage parts, your premium is likely to increase. However, the potential savings of an extended warranty can outweigh the cost, as engine replacements can range from $5,000 to $10,000.

Mechanical Breakdown Insurance (MBI)

In addition to extended warranties, you may also consider purchasing Mechanical Breakdown Insurance (MBI) as an optional policy on top of your regular car insurance. MBI covers the cost of purchasing major car parts, such as the engine, transmission, brakes, and power system. It acts as an extended warranty for your most expensive car parts and can cost around $100 per year, depending on your provider and vehicle. However, MBI often comes with a high deductible, which means you may end up paying out-of-pocket for some expenses.

Frequently asked questions