Catastrophic Engine Failure: Are You Covered By Auto Insurance?

Whether your auto insurance covers catastrophic engine failure depends on the cause of the failure and the type of insurance you have. If the engine failure is due to an accident or other peril covered by your insurance policy, such as a car accident or a fallen tree branch, then your insurance will likely cover the cost of repairs. However, if the engine failure is due to mechanical problems, wear and tear, or lack of maintenance, your insurance will not cover the cost. In this case, you would need to rely on a warranty or mechanical breakdown insurance (MBI) to cover the repairs. MBI is an optional policy that covers the cost of purchasing major car parts, such as the engine, and is often offered by car insurance companies as an alternative to an extended warranty.

Mechanical breakdown insurance

MBI is designed to protect your finances from unexpected breakdowns and repairs. It fills gaps in your standard auto insurance policy, which does not typically cover the cost of mechanical repairs unless they directly result from an accident or other covered incident. With MBI, you can get repairs from a preferred service provider or your own mechanic, and you can choose a deductible that suits your budget.

MBI is available for various vehicles, including cars, trucks, SUVs, and RVs. It is offered to new or leased cars that are less than 15 months old and have less than 15,000 miles on the odometer. The specific requirements may vary by provider. Once purchased, MBI can be renewed for up to seven years or 100,000 miles, whichever comes first.

It is important to note that MBI does not cover routine maintenance, such as oil changes, tire rotations, or brake pad replacements. It also does not cover wear and tear on parts like belts, hoses, and brakes. Additionally, MBI does not provide coverage for towing services or damage resulting from accidents, collisions, or environmental factors.

The cost of MBI varies depending on the provider, your vehicle, and other factors. It typically has a higher deductible compared to other coverages, and you may pay more if you purchase a standalone MBI policy instead of adding it to your existing auto insurance policy.

In summary, mechanical breakdown insurance provides an extra layer of protection for your vehicle by covering the costs of unexpected repairs to internal systems and components. It is a valuable option for those seeking peace of mind and financial protection from costly mechanical breakdowns.

Collision coverage

When combined with comprehensive coverage, collision coverage can provide even more protection for your vehicle. Comprehensive coverage protects against damages caused by conditions other than collisions, such as vandalism, extreme weather conditions, contact with animals, natural disasters, theft, and fallen objects. Together, collision and comprehensive coverage can help ensure that your car is well-protected against most issues, including a blown engine that is not the result of neglect.

It is important to note that collision coverage does not include mechanical problems or a blown engine due to normal wear and tear. In the event of a blown engine, collision coverage can help pay for damages if the engine failure is caused by a covered claim, such as a car accident. Additionally, collision coverage is subject to deductibles, which can affect your rates.

Comprehensive coverage

If you have both comprehensive coverage and collision coverage, your car will be protected against most issues, including a blown engine, as long as the damage is not the result of neglect.

Car warranty

Car warranties are a great way to ensure you're covered in the event of unexpected breakdowns or repairs. When you purchase a new car, you will likely be offered a warranty, and there are two main types: a bumper-to-bumper warranty and a powertrain warranty. A bumper-to-bumper warranty covers repairs to most car parts and systems, excluding the bumpers, while a powertrain warranty specifically covers the engine, transmission, and drive axles. These warranties typically have mileage or age limits and can be extended for an additional cost.

Extended car warranties are also available from third-party providers, offering additional protection beyond the manufacturer's warranty. These warranties can provide peace of mind and financial security in case of unexpected repairs, but it's important to carefully review the terms and conditions before purchasing. The best extended car warranty companies offer comprehensive coverage, flexible payment options, excellent customer service, and a track record of helping customers.

When it comes to engine failure, standard car insurance typically doesn't cover repairs unless they directly result from an accident or a peril covered by the policy. However, if you have recently purchased a car or extended warranty, the manufacturer may cover the cost of repairs in the event of engine failure. Additionally, some insurers offer mechanical breakdown insurance (MBI) or vehicle protection plans that provide similar coverage to a warranty. MBI covers the cost of purchasing major car parts, such as the engine, and can be purchased as an add-on to your regular car insurance.

Accidents and collisions

If you are involved in an accident that was not your fault, the at-fault driver's liability coverage will pay for the repairs to your vehicle, including any damage to the engine. If you are at fault and have collision coverage, you will need to file a claim through your own insurance policy.

Comprehensive coverage also provides protection for accidents and collisions that are not your fault. This includes events such as theft, vandalism, fire, broken windows or windshields, weather events, and collisions with animals. If your engine is damaged as a result of any of these events, comprehensive coverage will pay for the repairs.

It is important to note that both collision and comprehensive coverage only apply if the damage to the engine is a direct result of the accident or covered event. If the engine failure is due to normal wear and tear or a pre-existing mechanical issue, the repairs may not be covered. In addition, you may be required to provide documentation or proof that the engine failure was caused by the accident and not by negligence, inadequate maintenance, or a mechanical failure.

To ensure you have the necessary coverage in the event of an accident or collision, it is recommended to have both collision and comprehensive coverage as part of your auto insurance policy.

Frequently asked questions