Does Full Coverage Insurance Cover Engine Failure?

The term “full coverage” is frequently used by consumers, but it does not refer to a single, all-encompassing policy. Instead, it broadly describes a combination of various insurance coverages designed to protect a vehicle and its owner financially.

Understanding Standard Full Coverage

Full coverage typically includes liability insurance, alongside comprehensive and collision coverage, to provide broad financial protection. Liability coverage is mandatory in most states and addresses damages or injuries you might cause to others in an accident. This coverage does not extend to damage to your own vehicle.

Collision coverage helps pay for repairs or replacement of your vehicle if it is damaged in an accident involving another vehicle or an object, such as a fence or tree. It also covers damage from single-car accidents like rollovers. Comprehensive coverage, often referred to as “other than collision,” covers damage to your car from events not involving a collision, such as theft, vandalism, fire, natural disasters, or hitting an animal. While both collision and comprehensive cover damage to your own vehicle, they apply to different types of incidents.

Engine Failure When Caused by Covered Perils

However, engine damage can be covered if it results from a “covered peril” under your collision or comprehensive insurance. This means the engine failure must be a direct consequence of a specific event that your policy is designed to protect against.

For instance, if your engine is damaged during a car accident, such as a front-end collision that impacts the engine block, collision coverage would typically apply. Similarly, comprehensive coverage may cover engine damage caused by non-collision events. Examples include fire damage to the engine, or hydrolock resulting from driving through deep floodwaters. Engine damage from vandalism, a tree branch falling directly onto the engine, or striking an animal on the road would also generally fall under comprehensive coverage. In these scenarios, the policy covers the sudden, external event that damaged the engine, not the engine’s inherent failure or mechanical breakdown.

Engine Failure From Mechanical Breakdown

Standard auto insurance policies, including collision and comprehensive coverages, explicitly exclude engine failure caused by mechanical breakdown, wear and tear, or a lack of maintenance. This fundamental exclusion is based on the principle that insurance is designed to cover sudden, unforeseen incidents, not gradual deterioration or preventable issues. Insurers define wear and tear as the normal deterioration of parts from everyday use, which are expected and largely uninsurable.

Common examples of engine failures that would not be covered include an engine seizing due to insufficient oil or coolant, a timing belt breaking due to age, or internal component failures resulting from normal operation. Overheating not caused by an external, covered peril also falls under this exclusion. If an engine blows due to neglect, such as failing to perform routine maintenance like oil changes, the financial responsibility for repairs falls solely on the vehicle owner. These types of failures are considered the owner’s responsibility for upkeep and are distinct from damage caused by an accident or other specified covered event.

Other Protection Options for Engine Problems

Since standard auto insurance does not cover mechanical engine failures, several alternative options exist to protect against such costly repairs. A new vehicle typically comes with a manufacturer’s warranty, which covers manufacturing defects for a specified period or mileage. This warranty can provide coverage for engine issues if they arise from a defect rather than wear and tear or neglect.

Beyond the manufacturer’s coverage, consumers can consider purchasing an extended warranty, often referred to as a vehicle service contract. These contracts are separate from insurance and cover major mechanical components like the engine after the factory warranty expires. Another option is Mechanical Breakdown Insurance (MBI), which is a less common but available type of insurance specifically designed to cover mechanical failures. MBI is typically offered as an add-on to an auto insurance policy or as a standalone policy, and it differs from an extended warranty in its regulation and payment structure. MBI policies often have a deductible, commonly around $250, and generally cover many parts and systems not included in standard auto insurance.