Auto Insurance Engine Repair: What's Covered And What's Not

Whether auto insurance covers engine repair depends on the type of insurance and the circumstances. Standard car insurance doesn't usually cover engine repairs unless they directly result from an accident or other peril covered by the insurance policy. If you have comprehensive coverage and collision coverage, you're generally covered for engine repairs if the engine is damaged in an accident or due to an event outside of your control. Uninsured/underinsured motorist property damage coverage may also pay for engine repairs if you're hit by someone with little or no insurance. If your engine suffers a mechanical failure or breaks down due to normal wear and tear, car insurance generally won't cover the cost to repair or replace it. However, some insurers may offer mechanical breakdown insurance or vehicle protection plans that provide coverage for mechanical failure. Additionally, if your vehicle is new or you have an extended warranty, the manufacturer may pay for repairs in the case of engine failure or mechanical breakdown.

Comprehensive insurance and collision insurance

If your engine failure is caused by an accident, collision coverage will pay for repairs after you've met your deductible. On the other hand, if your engine failure is caused by a covered peril such as theft, vandalism, fire, or extreme weather, comprehensive coverage will pay for the repairs. It's important to note that neither comprehensive nor collision coverage includes engine failure due to normal wear and tear or mechanical problems.

In addition to comprehensive and collision insurance, there are other options for coverage, such as mechanical breakdown insurance (MBI) and extended warranties, which can provide protection for engine repairs not caused by accidents. MBI is similar to an extended warranty and can be purchased as an endorsement on your auto insurance policy or as standalone coverage from a third party. Extended warranties, on the other hand, are usually offered by car dealerships and cover minor repairs but tend to be more expensive than MBI.

Mechanical breakdown insurance

MBI is available for various vehicles, including cars, trucks, SUVs, and RVs. It is typically offered for new or leased cars with less than 15,000 miles on the odometer and where the customer is the first owner. The coverage can be renewed for up to seven years or 100,000 miles, depending on the provider.

MBI functions similarly to an extended warranty, covering any kind of breakdown, such as a blown motor or transmission problem. However, it is purchased from an insurance company rather than a dealer. MBI is often cheaper per month and allows more flexibility in choosing a mechanic. On the other hand, an extended warranty may be available for a broader range of vehicles and can cover high-end vehicles that MBI might not.

When purchasing MBI, you can choose a deductible that fits your budget, typically ranging from $100 to $500. You can also select between pay-as-you-go monthly payments or annual payments.

MBI can be a valuable addition to your auto insurance, protecting you from unexpected repair costs. However, it is important to note that it does not cover routine maintenance or towing services.

Manufacturer's warranty

A manufacturer's warranty is the automaker's guarantee that if problems occur within a certain period of time or number of miles, they will cover the cost of repairs. Warranties cover mechanical issues due to bad parts or defects that occur during manufacturing. They do not cover typical wear and tear, routine maintenance, or problems that occur due to the vehicle owner's negligence.

There are two main types of warranty coverage:

• Bumper-to-bumper warranty: This covers almost everything between your bumpers, including heating and air conditioning, electrical components, and hybrid vehicle parts.
• Powertrain warranty: This covers the components that make your vehicle move, including the engine, transmission, drive axles, gears, and axles.

Both types of warranties can be extended beyond the manufacturer's expiration for an additional cost, usually based on mileage or age. An extended bumper-to-bumper or powertrain warranty will cover an engine replacement. However, a drivetrain warranty, another type of extended warranty, may not cover engine replacement as some drivetrain warranties do not consider the engine to be part of the drivetrain.

It's important to carefully review the terms of your warranty contract before investing in aftermarket engine parts or upgrades, failing to take the car in for routine maintenance, misusing your vehicle, using the wrong fluids, or altering the odometer, as these actions may void your warranty.

Uninsured/underinsured motorist property damage coverage

Uninsured motorist property damage coverage (UMPD) specifically protects your vehicle and, in some states, your belongings inside the vehicle, from damage caused by an uninsured or underinsured driver. This coverage is required in a few states, optional in several, and unavailable in about half of the United States. It's important to note that UMPD only covers damage caused by another driver and not damage caused by a collision with an object or a single-car accident.

In contrast, collision coverage applies to any damage to your vehicle, regardless of whether it was caused by another vehicle, an object, or yourself. Collision coverage is not mandatory in any state but may be required if you're leasing or financing a vehicle. It also includes a deductible, which can be higher than the UMPD deductible.

When deciding whether to opt for UMPD coverage, consider that it can provide valuable protection in the event of a hit-and-run accident, where the other driver cannot be found to pay for damages. Additionally, UMPD coverage may be more affordable than collision coverage, depending on your state and insurer.

Ultimately, the decision to choose UMPD or collision coverage depends on your specific needs and concerns. If you're primarily worried about damage to your vehicle, collision coverage may be more suitable as it offers protection in a wider range of scenarios. However, if you're concerned about the financial implications of an accident with an uninsured or underinsured driver, UMPD coverage could be a worthwhile investment.

Extended warranty

An extended warranty is an optional service agreement that covers mechanical breakdowns. It is not a warranty, but an insurance policy that safeguards against expensive, unforeseen repairs. It covers repairs for an agreed-upon period of time and mileage.

Extended warranties are offered by both carmakers (OEMs) and third-party vendors. An OEM extended warranty will usually mimic the original warranty offered when the vehicle was new, extending the length of coverage and the allotted mileage. Third-party warranties may have more limitations and exclusions, and may require you to pay for repairs upfront and file a claim for reimbursement.

There are two main types of extended warranties: bumper-to-bumper and powertrain. A bumper-to-bumper warranty covers almost all mechanical and electrical components, excluding a few specified parts. A powertrain warranty covers only the engine, transmission, drive axles, and other parts that make the car move.

Extended warranties can be purchased for new or used cars, and the cost will depend on factors such as the vehicle's make and model, age, mileage, and existing coverage. The average cost of an extended warranty is about $128 per month, with total costs ranging from $1,500 to $4,000 or more.

When deciding whether to purchase an extended warranty, consider the following:

• Whether your vehicle is already under warranty and for how long
• The length of coverage and when it begins
• What is covered and what is excluded from the warranty
• Whether you can cancel the warranty later and receive a prorated refund
• Whether the warranty includes a separate budget for maintenance, as most extended warranties do not cover scheduled maintenance or items that wear out

Frequently asked questions