Will my car insurance cover engine failure? Car insurance is designed to provide financial protection against unexpected incidents, such as accidents, theft, and natural disasters.
However, many car owners wonder whether their insurance policy covers engine failure. Engine failure can be a costly and frustrating issue, which often leaves vehicle owners with significant repair expenses.
While car insurance policies typically cover damage resulting from accidents, fire, or theft, they do not always include mechanical failures or wear and tear.
Engine failure is generally classified as a maintenance issue rather than an insurable event. However, there are specific circumstances where insurance might help cover the costs.
What Does Car Insurance Cover?
The car insurance policies consist of different types of coverage, with each one serving a specific purpose. Understanding these coverage helps determine whether engine failure is included in your policy. The types of car insurance coverage include:
- Liability Coverage: This covers damages and injuries you cause to other people and their property. It does not cover any repairs to your own vehicle, including engine failure.
- Comprehensive Coverage: This covers non-collision-related damages, such as theft, fire, natural disasters, and vandalism. Engine failure is usually not covered unless caused by a covered peril, like a flood or fire.
- Collision Coverage: Pays for damages to your vehicle in case of an accident, but it does not cover mechanical breakdowns or engine failures due to wear and tear.
- Extended Warranty: Though it is not the traditional insurance, an extended warranty can help cover repairs for engine failure and other mechanical problems.
- Mechanical Breakdown Insurance: This is a separate insurance policy that covers repairs for mechanical issues, including engine failure, under specific conditions.
When Does Car Insurance Cover Engine Failure?
While standard car insurance policies do not cover engine failure caused by wear and tear, there are instances where coverage may apply. Here are the covered scenarios where this might happen:
- Accident-Related Engine Damage: If your engine is damaged due to a car accident, collision coverage may pay for repairs.
- Theft and Vandalism: If your engine is damaged due to theft or vandalism, comprehensive insurance may help with repairs.
- Fire or Natural Disaster Damage: If a covered peril like a flood, fire, or hurricane damages your engine, comprehensive insurance may cover it.
- Manufacturer Defects: In rare cases, if an engine fails due to a defect, the manufacturer’s warranty will cover the repairs.
When Is Engine Failure Not Covered?
Most insurance companies exclude certain causes of engine failure from their policies. Such scenarios include:
- Wear and Tear: Gradual deterioration of engine components over time is considered a maintenance issue and is not covered.
- Mechanical Malfunctions: Mechanical issues and breakdowns unrelated to accidents or external perils are not covered under standard car insurance.
- Overheating: Engine damage due to overheating caused by poor maintenance is typically excluded from coverage.
- Lack of Maintenance: If engine failure results from neglected oil changes, coolant leaks, or other preventable issues, insurance will not cover repairs.
Alternative Options For Covering Engine Failure Costs
If car insurance does not cover engine failure, there are alternative ways to manage repair expenses. Those options include:
Mechanical Breakdown Insurance (MBI)
MBI is an optional policy that covers mechanical failures, including engine breakdowns. Also, it is typically offered for new or nearly new vehicles and works similarly to an extended warranty but it has insurance-like benefits.
Manufacturer’s Warranty
If your vehicle is still under the original manufacturer’s warranty, then the engine repairs due to defects or faulty parts may be covered.
Extended Warranties
An extended warranty, also known as a vehicle service contract, helps cover repair costs for engine failure and other mechanical problems after the manufacturer’s warranty expires.
Regular Maintenance And Repairs
The best way to avoid engine failure is through regular maintenance, including timely oil changes, coolant refills, and servicing to prevent expensive repairs.
Frequently Asked Questions
Can I Claim Insurance For Engine Failure Caused By An Accident?
Yes, if your engine fails due to accident-related damage, your collision coverage may cover the repairs.
Will My Insurance Cover Engine Damage From Overheating?
No, most insurers do not cover engine damage resulting from overheating due to maintenance neglect.
How Can I Prevent Costly Engine Repairs?
Regular vehicle maintenance, including oil changes, coolant refills, and professional servicing, can help prevent engine failure and costly repairs.