Does Insurance Cover a Blown Engine?

When a car’s engine fails, the financial implications can be significant. Engine repair or replacement costs can range from several thousand dollars to over ten thousand, depending on the vehicle and damage. This expense often leads vehicle owners to question whether their auto insurance policy will provide coverage.

Standard Auto Insurance and Engine Coverage

Standard auto insurance policies are designed to protect against financial losses arising from accidents, theft, vandalism, and natural disasters, rather than internal mechanical failures. These policies typically include liability, collision, and comprehensive coverages. Liability coverage helps pay for damages or injuries you cause to other people or their property in an accident. This type of coverage does not extend to repairs for your own vehicle, including engine damage.

Collision coverage covers damage to your own vehicle resulting from a collision with another car or object, regardless of fault. Comprehensive coverage protects against non-collision incidents such as theft, vandalism, fire, flood, or damage from falling objects. While these coverages are important for protecting your vehicle, they generally do not cover internal mechanical failures, breakdowns from wear and tear, or defects.

Scenarios Where Engine Damage May Be Covered

Standard auto insurance may cover engine damage in specific circumstances. If engine damage results from an external, sudden, and accidental event, collision or comprehensive coverage may apply. For instance, if your engine is damaged in a car accident, your collision coverage could pay for repairs. If another driver is at fault, their liability coverage typically covers the repairs.

Comprehensive coverage can protect if engine damage occurs due to events outside your control, such as a fire. This includes fires from electrical shorts or mechanical malfunctions. Damage from flood or water submersion, which can lead to a hydro-locked engine, may also be covered under comprehensive insurance. Engine damage from vandalism or a falling object like a tree limb could also be covered by comprehensive insurance.

Scenarios Where Engine Damage Is Not Covered

Standard auto insurance policies do not cover engine failure stemming from routine mechanical issues. Wear and tear is a primary exclusion; costs for repairs due to aging components are not covered. Insurance is designed for sudden, unexpected events, not gradual deterioration.

Failure to perform routine maintenance, such as oil changes or coolant checks, is another common reason for denial. If engine failure results from neglected maintenance, the responsibility for repairs falls on the vehicle owner. Manufacturer defects are also excluded from standard auto insurance, as these issues are addressed by new car warranties or recalls. Additionally, pre-existing conditions will not be covered.

Mechanical Breakdown Insurance and Extended Warranties

For engine mechanical failures not covered by standard auto insurance, Mechanical Breakdown Insurance (MBI) and extended warranties provide alternative solutions. MBI is an insurance policy designed to cover the cost of repairs for unexpected mechanical and electrical malfunctions, including engine issues. It differs from standard auto insurance by focusing on internal mechanical failures rather than accident-related damage.

MBI can often be purchased as an add-on to an existing auto insurance policy from some insurers. Eligibility often requires the vehicle to be relatively new, with coverage renewable for several years or up to 100,000 miles. MBI typically covers major components like the engine, transmission, and electrical systems, after a deductible, which can range from $200 to $500 per incident.

Extended warranties, also known as vehicle service contracts, are similar to MBI as they cover repairs beyond the manufacturer’s original warranty. These contracts are offered by manufacturers or third-party providers and typically cover malfunctions of major systems, including the engine. While both address mechanical issues, MBI is often regulated by state insurance departments, potentially offering stronger consumer protections. MBI is also generally less expensive, with costs ranging from approximately $30 to $100 per year, compared to extended warranties that can average between $1,300 and $4,600 per year, though extended warranties may not always have a deductible. Both typically exclude routine maintenance and damage from neglect.