Blown Engine Blues: Are You Covered By Your Auto Insurance?

Whether your 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 insurance, collision coverage, or mechanical breakdown insurance, your insurance provider may cover the damage. Comprehensive insurance covers damage caused by conditions other than collision, such as vandalism or extreme weather conditions. Collision coverage protects your car in the event of a collision. Mechanical breakdown insurance (MBI) is an optional policy that covers the purchase of major car parts, such as the engine, but it can be costly and often comes with a high deductible. Standard car insurance typically does not cover engine repairs unless they are a direct result of an accident or other peril covered by the insurance policy.

Collision coverage

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 the result of neglect or lack of maintenance.

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 or extreme weather conditions. However, comprehensive coverage will not cover a blown engine that is the result of mechanical failure or wear and tear.

Uninsured motorist coverage

Whether or not your auto insurance covers a blown engine depends on the type of insurance you have and what caused the engine to blow out. If your engine is damaged in an accident or due to an event outside of your control, such as a fallen tree limb, you may be covered if you have comprehensive coverage and collision coverage. Uninsured/underinsured motorist property damage coverage may also pay for engine repairs if your engine is damaged in an accident caused by an uninsured or underinsured driver.

Now, let's talk about uninsured motorist coverage in more detail:

While not all states require uninsured and underinsured motorist coverage, about half of them mandate at least one of these coverages. Even if it's not mandatory in your state, driving without this coverage can be risky. According to the Insurance Information Institute, approximately 13% of drivers across the country are uninsured, and this number exceeds 20% in certain states. Without uninsured motorist coverage, you could be left paying for medical bills or vehicle repairs out of your own pocket if you're in an accident with an uninsured or underinsured driver.

Uninsured/underinsured motorist insurance covers medical expenses for you and your passengers, as well as damage to your vehicle, if you are hit by an uninsured or underinsured driver. Depending on your state, this insurance may be divided into up to four separate coverages:

• Uninsured Motorist Bodily Injury (UMBI): Covers medical bills for you and your passengers if you are hit by an uninsured driver.
• Uninsured Motorist Property Damage (UMPD): Pays for damage to your vehicle caused by an uninsured driver.
• Underinsured Motorist Bodily Injury (UIMBI): Covers medical expenses for you and your passengers if the at-fault driver doesn't have sufficient insurance.
• Underinsured Motorist Property Damage (UIMPD): Pays for damage to your vehicle if the other driver doesn't have enough insurance.

You typically have the option to choose the insurance limits for your coverage. For bodily injury coverage, consider matching the amount with your liability coverage limits. For property damage coverage, a good rule of thumb is to select a limit that closely matches the value of your vehicle.

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.

MBI can cost around $100 a year, though the price varies depending on your provider and your car's make, model, and mileage. It often comes with a high deductible, which means the policyholder may end up paying out-of-pocket for many expenses.

MBI covers repairs to most original mechanical parts of the car (except for maintenance and wear and tear). It does not cover routine maintenance expenses, such as oil changes, tire rotations, or brake pad replacements. Wear and tear on parts such as belts, hoses, and brakes are also generally excluded from coverage.

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 their vehicles may already be covered by a warranty.

Extended warranties

There are two main types of extended warranties: powertrain and bumper-to-bumper. A powertrain warranty covers your engine and transmission against defects in workmanship, while a bumper-to-bumper warranty covers most other items in the vehicle, including major components under the hood, navigation systems, power seats, and onboard computers.

When considering an extended warranty, it's important to read the fine print and understand the eligibility criteria, coverage plans, and cost implications. Some providers may not cover vehicles with rebuilt engines, and there may be restrictions on the types of plans available for these vehicles. Additionally, extended warranties do not typically cover scheduled maintenance or items that wear out, such as brake pads and windshield wipers.

While an extended warranty can provide peace of mind and protect you from high repair costs, it's important to weigh the pros and cons before purchasing one. In some cases, it may be more cost-effective to set aside money each month to cover the cost of repairs yourself. Alternatively, you may want to consider a vehicle protection plan or mechanical breakdown insurance, which can provide more comprehensive and affordable coverage.

Frequently asked questions