Auto Insurance: Blown Engine Coverage

Whether your auto insurance covers a blown engine depends on the type of insurance you have and what caused the engine to blow out. Comprehensive insurance, collision insurance, and mechanical breakdown insurance (MBI) may cover a blown engine. Comprehensive insurance covers damage caused by vandalism, extreme weather conditions, theft, fire, broken windows, and hitting an animal. Collision insurance covers damage caused by accidents or collisions. MBI is an optional policy that covers the purchase of major car parts, such as the engine, and typically costs around $100 a year.

Collision coverage

It is important to note that collision coverage is subject to deductibles, which will affect your rates. Additionally, collision coverage does not cover mechanical failures or breakdowns due to normal wear and tear. In those cases, you may need to purchase separate mechanical breakdown insurance (MBI) to cover the cost of repairs or replacements.

Comprehensive coverage

However, it is important to note that comprehensive coverage does not cover mechanical failure or wear and tear. So, if your engine suffers a mechanical failure or breaks down due to normal wear and tear, comprehensive coverage will not cover the cost to repair or replace it.

Additionally, comprehensive coverage is subject to deductibles, which will affect your rates. It is also important to check the specific details of your comprehensive coverage, as the inclusions and exclusions may vary by state and insurance provider.

Uninsured motorist coverage

It is important to note that uninsured motorist coverage may not cover a blown engine if it is a result of mechanical failure, normal wear and tear, or neglect. In such cases, mechanical breakdown insurance (MBI) or a vehicle protection plan may be more appropriate. These types of insurance can cover repairs or replacement of major car parts, including the engine, and are often offered as optional policies in addition to regular car insurance. MBI can provide peace of mind, especially for those with newer vehicles, by acting as an extended warranty and covering expenses that may not be included in a standard warranty.

The availability and cost of mechanical breakdown insurance can vary depending on your provider, the state you live in, and your car's make, model, and mileage. It typically comes with a high deductible, so it is important to consider your own financial situation and the likelihood of needing such coverage. Comprehensive coverage and collision coverage are also worth considering, as they can protect against damages caused by accidents, vandalism, extreme weather conditions, and other events outside your control.

When dealing with a blown engine, it is always a good idea to pull over, call for roadside assistance, and contact your insurance provider as soon as possible. They can guide you through the specific steps to make a claim and help determine what type of coverage you may need to cover the repairs. It is also important to be transparent with your insurer about the cause of the issue to avoid any problems or potential fraud.

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. For example, an electric car will have a different rate to a Toyota Civic. MBI often comes with a high deductible, which means the policyholder may end up paying out-of-pocket for many expenses. After paying your deductible, the MBI will cover the remaining cost of your covered repairs with your service provider.

MBI 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. Additionally, MBI does not provide coverage for towing or damage resulting from accidents, collisions, or environmental factors.

Car warranty

A car warranty is a service contract that guarantees you won't have to pay for expensive car repairs out of pocket. When you buy a new car, it typically comes with a manufacturer's warranty that covers repairs for a certain period. However, once that warranty expires, you may want to consider purchasing an extended warranty or a vehicle service contract to continue enjoying the benefits of coverage.

Extended warranties are offered by both manufacturers and third-party providers. They provide additional coverage beyond the original manufacturer's warranty, giving you peace of mind and protection from unexpected repair costs. When choosing an extended warranty, it's important to read the fine print and understand the terms, conditions, and exclusions. Some warranties may have limitations or require you to use specific repair shops.

Vehicle service contracts, also known as car repair insurance, are different from extended warranties. These contracts are purchased separately and provide coverage for specific repairs or services. They offer more flexibility in choosing your trusted mechanic and often include additional benefits such as roadside assistance, towing, and rental car reimbursement.

When deciding whether to purchase an extended warranty or a vehicle service contract, consider the age and reliability of your vehicle, your budget, and your comfort level with potential out-of-pocket expenses. Extended warranties can be costly, but they may save you money in the long run if your car requires significant repairs. On the other hand, vehicle service contracts provide more flexibility and can be tailored to your specific needs and budget.

It's worth noting that standard car insurance typically doesn't cover engine repairs unless they are a direct result of an accident or other insured peril. Therefore, having an extended warranty or vehicle service contract can provide valuable protection for your vehicle.

Frequently asked questions