Comprehensive Auto Insurance: Engine Guardian Or Not?

Standard car insurance policies do not typically cover engine repairs unless they are directly caused by an accident or other peril covered by the insurance policy. However, comprehensive auto insurance, which covers damage to a vehicle not caused by a driving accident, may cover engine repairs in certain circumstances. For example, if a branch falls on a car during a storm and damages the engine, comprehensive insurance would likely cover the repairs.

Comprehensive insurance covers damage from vandalism, natural disasters, fire, and theft

Comprehensive auto insurance covers damage to your car caused by events other than collisions with other vehicles or stationary objects. It is important to note that comprehensive insurance does not cover engine failure due to mechanical breakdown or normal wear and tear. However, it can provide coverage in specific scenarios where damage results from external factors.

Comprehensive insurance covers damage from:

• Vandalism: If your car is vandalised and the engine is affected, comprehensive insurance will cover the repairs.
• Natural disasters: Damage to your engine caused by natural disasters, such as floods, storms, or falling trees, is covered under comprehensive insurance.
• Fire: In the unfortunate event of a fire, comprehensive insurance will cover the cost of repairing or replacing your engine.
• Theft: If your car is stolen and the engine is damaged or tampered with, comprehensive insurance will provide coverage for the necessary repairs.

While comprehensive insurance does not cover engine failure due to mechanical issues, it can provide valuable protection against unforeseen events and external factors that may cause engine damage. It is always recommended to carefully review your insurance policy to understand the specific coverages and exclusions.

Collision insurance covers damage to your vehicle from a collision with another car or object

Collision insurance is an optional add-on to your basic auto insurance policy. It covers damage to your vehicle in the event of a collision with another car or object, such as a tree or lamppost. It also covers damage caused by hitting a curb or driving over a pothole. If you are in an accident and the other driver is at fault, their liability insurance will cover the cost of the damage to your car. However, if they do not have enough insurance, your collision insurance will kick in and cover the cost of repairs.

Collision insurance is required by lenders if you are financing or leasing your car. It is worth purchasing if you would struggle to pay for repairs or a new vehicle in the event of a collision. It is also a good idea if you drive an expensive car.

When deciding whether to purchase collision insurance, consider the age of your car. Collision insurance will only pay out up to the current market value of your car, minus your deductible. Therefore, if your car is old and has a low market value, collision insurance might not be worth the cost.

If you decide to purchase collision insurance, you will need to choose a deductible. This is the amount you will pay out-of-pocket before the insurance coverage kicks in. Typically, the higher your deductible, the lower your premium. Collision insurance can be expensive, but you can save on premiums by choosing a higher deductible of $500 or more.

It is important to note that collision insurance does not cover damage to your vehicle from non-traffic events, such as theft, extreme weather, or vandalism. It also does not cover damage caused by another driver if their insurance can cover the cost of repairs. Additionally, collision insurance will not cover medical costs for injuries to yourself or your passengers, or damage to personal belongings inside your car.

Comprehensive insurance doesn't cover engine failure from mechanical issues

Comprehensive insurance does not cover engine failure from mechanical issues. Comprehensive insurance covers damages to a vehicle that are not the result of a driving accident, such as theft, vandalism, fire, or explosion. It also covers non-collision events like flooding, heavy rains, hail, and fallen tree branches.

Engine failure due to mechanical issues is typically not covered by car insurance unless it is directly linked to a covered claim. This means that if your engine suffers a mechanical failure due to normal wear and tear, comprehensive insurance will generally not cover the cost of repair or replacement.

To protect yourself against engine repair costs, you can consider purchasing an extended warranty or mechanical breakdown insurance (MBI). An extended warranty covers minor repairs and is available for almost all types of cars, while MBI is cheaper and covers major repairs. Both options have their advantages and disadvantages, so it's important to carefully consider your needs before choosing one.

Mechanical breakdown insurance is an optional coverage offered by some car insurance companies

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. Engine failure is covered under MBI, but normal maintenance and wear and tear on items like brakes are not. Like a warranty, mechanical breakdown insurance only provides coverage for a specific period, often based on the number of miles on your vehicle.

MBI is usually only available when you buy a car, and not every car is eligible for the coverage. It depends on the vehicle's age and mileage. You can purchase MBI as an endorsement on your auto insurance policy, or as standalone coverage through a third party. The coverage typically includes:

• Air conditioning/heater
• Electrical components, including computerized systems
• Engine parts and systems

MBI is generally cheaper than an extended warranty and payable in monthly instalments. You also have the freedom to choose your mechanic. However, the deductible is often higher, and it won't cover minor repairs. MBI is usually only available for new vehicles and renewable for up to seven years or 100,000 miles, whichever comes first.

Extended warranties can be purchased from car dealerships for engine repairs

Standard car insurance typically does not cover engine repairs unless they are directly caused by an accident or another covered peril. Mechanical breakdown insurance or vehicle protection plans are available from some insurers to cover engine repairs not covered by your warranty.

Extended warranties can be useful if you want added peace of mind and vehicle protection. They can keep your vehicle running smoothly and protect your investment. They are especially beneficial if you are buying a used car, as they can help cover the cost of unforeseen mechanical problems.

There are some advantages and disadvantages to purchasing an extended warranty from a dealership. On the positive side, dealership warranties offer reliable coverage, perks such as roadside assistance and rental car reimbursement, and the convenience of buying the warranty and car at the same time. However, they can be more expensive than warranties from third-party companies, and there may be additional fees and unwanted add-ons. It is also important to carefully review the terms and conditions, as coverage may be limited and there may be restrictions on repair locations.

When deciding whether to purchase an extended warranty from a dealership, consider your budget, the age and mileage of your vehicle, the reputation of the warranty provider, and the level of coverage you need. It is also worth comparing the costs and benefits of a dealership warranty with those of a third-party warranty to find the best option for your needs.

Frequently asked questions