Auto Insurance: Engine Repairs And Coverage

Whether or not auto insurance covers engine repairs depends on the cause of the engine failure. If the engine has failed because of an accident, fire damage, or theft, it may be covered. However, if the engine has failed due to wear and tear, mechanical failure, or negligence, it is unlikely to be covered by standard insurance. Comprehensive insurance policies may cover repairs, but it is important to weigh the cost of claiming against the potential impact on future insurance costs. Some insurers offer mechanical breakdown insurance or vehicle protection plans that cover mechanical failure, and engine protection add-ons can also be purchased to cover engine repairs not resulting from accidents.

Comprehensive insurance may cover engine repairs

However, comprehensive insurance will not cover mechanical failure or engine breakdown due to normal wear and tear. In these cases, you will need to purchase additional mechanical breakdown insurance (MBI) to cover engine repairs. MBI is offered by some car insurance companies as an alternative to an extended warranty. It covers engine failure and other mechanical problems not caused by accidents or collisions.

It is important to note that comprehensive insurance is not required by state law, but it is usually needed for leased or financed vehicles. Additionally, the availability of MBI may vary by state, and it is not offered by all insurance companies.

Collision insurance may cover engine repairs

Collision insurance is one of the two main types of coverage included in a full-coverage auto insurance policy. The other type is comprehensive insurance, which covers events that are not related to a collision, such as theft, vandalism, fire, weather events, and animal collisions. While comprehensive insurance does not typically cover engine repairs, it can provide coverage if the engine damage is caused by a covered event, such as a fire or a fallen tree limb.

It is important to note that collision and comprehensive insurance are optional coverages and may not be included in a basic auto insurance policy. Additionally, even with collision and comprehensive insurance, mechanical failures due to wear and tear or maintenance issues are generally not covered. In such cases, mechanical breakdown insurance (MBI) or an extended warranty may provide coverage for engine repairs. These options are available from some car insurance companies or as separate policies from third-party providers.

Mechanical breakdown insurance can cover engine repairs

Mechanical breakdown insurance (MBI) is an optional coverage offered by some car insurance companies. It is an alternative to an extended warranty and may provide broader coverage. MBI covers engine failure, but it does not cover normal maintenance and wear and tear items, such as brakes, belts, hoses, and oil changes.

MBI is available for new or leased cars with low mileage and age, and the customer must be the first owner of the vehicle. Once purchased, MBI can be renewed for up to seven years or 100,000 miles, depending on the provider. After paying a deductible, MBI will cover the remaining cost of covered repairs with your chosen service provider.

MBI is often more comprehensive than an extended warranty, which typically only covers repairs due to defective materials or improper manufacturing. Additionally, extended warranties usually come with a high upfront cost, while MBI allows for pay-as-you-go monthly or annual payments.

MBI is a good option for those with older cars or high mileage, as these vehicles are more likely to break down. However, it may not be worth it for new car owners, as they may already have a warranty, and MBI does come with a deductible. Ultimately, the decision to purchase MBI depends on individual needs and the reliability of one's vehicle.

Engine protection add-on covers engine repairs

Engine protection add-on cover is an optional extra that you can purchase alongside a comprehensive or standalone own-damage car insurance policy. It covers the cost of repairing or replacing the car's engine and its parts. This can be particularly useful if you live in an area that is prone to flooding, or if you own a high-end car where engine repairs could be costly.

The cost of an engine protection add-on is relatively low compared to the price of repairing or replacing an engine, making it a cost-effective option. This type of cover is not included in standard car insurance policies, even with full coverage. So, if you want protection against engine damage, you will need to purchase this add-on.

Engine protection add-on covers the cost of repairs or replacement in the event of damage caused by water ingression, leakage of lubricating oils, physical damage to differential parts or the gearbox, and engine failure due to attempting to start a wet engine. It is important to note that there are some exclusions to this cover, such as cars over a certain age, and restrictions on the number of claims that can be made.

In addition to the engine protection add-on, there are other types of cover that can protect you financially in the event of engine failure. These include mechanical breakdown insurance and warranties, which can cover the cost of repairs if your car breaks down due to a mechanical problem.

Warranties may cover engine repairs

Types of Warranty

There are two main types of warranty coverage: bumper-to-bumper and powertrain. A bumper-to-bumper warranty covers repairs to most car parts or systems, including those that cause mechanical breakdown or engine failure. This type of warranty usually comes with new vehicles and is valid for a short period, often three years or 36,000 miles, whichever comes first. An extended bumper-to-bumper warranty can be purchased from the manufacturer or a third party once the original warranty expires.

A powertrain warranty specifically covers the drive axles, engine, and transmission—the parts that make the car move. This type of warranty typically has a longer term than a bumper-to-bumper warranty, with standard terms of five years or 60,000 miles. Some manufacturers offer powertrain warranties of up to 10 years or 100,000 miles. An extended powertrain warranty can also be purchased after the original warranty expires.

It's important to note that a drivetrain warranty, which is another type of extended warranty, may not cover engine replacement since some drivetrain warranties do not consider the engine to be part of the drivetrain.

Causes of Engine Failure

Whether a warranty covers engine repairs also depends on the cause of the engine failure. Warranties typically cover mechanical issues due to bad parts or defects that occur during manufacturing. They do not cover typical wear and tear, routine maintenance, problems caused by the vehicle owner's negligence, or collision damage. If engine failure results from an accident, your car insurance may provide coverage, depending on the type of insurance you have.

To ensure that your warranty remains valid, it's essential to follow the terms and conditions of the contract, including recommended servicing schedules and the use of approved parts and fluids.

Frequently asked questions