Having an engine fail in your vehicle is a costly problem to encounter. Since it’s typically an expensive fix, many auto owners wonder: Does insurance cover engine failure?
Like most questions regarding insurance coverage, the answer is both complex and reliant on the specific coverage in your plan. Generally speaking, though, auto insurance plans cover accidental and liability claims, and not the malfunction of parts. Most auto insurance plans will not cover the cost of fixing an engine that has broken down.
There are some alternatives though, that car owners should know about. Before learning about insurance for transmission and engine issues, a quick review of common auto insurance policies would be helpful.
To know what’s covered, you need to understand the different types of auto insurance:
So, does full coverage insurance cover engine failure? Typically, standard policies (liability, collision, and comprehensive) do not cover engine failure due to wear and tear, neglect, or mechanical issues unrelated to a specific covered event.
Some policies may cover engine repair if the damage to the engine was caused by a situation where a claim would be covered. That means there may actually be some insurance for transmission and engine problems.
If your engine is destroyed due to a flood, fire, or other natural disaster, comprehensive coverage may cover the cost, assuming the incident is listed as a covered peril. In this case the engine damage occurred as the result of damage that the comprehensive plan was covering. Comprehensive coverage likely also covers damage due to theft or vandalism, so if your engine is broken because of vandalism, your plan may accept a claim.
Collision coverage is meant to cover the cost of repairing your vehicle in the event of an accident. If an auto owner is looking to know will insurance cover engine failure, the answer is a bit nuanced. While your plan wouldn’t cover the cost of repairing an engine just simply because it failed, if the engine was damaged in a collision, the repair may be honored as part of the collision coverage.
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Since auto insurance policies typically don’t cover engine failure due to neglect or wear and tear, car owners concerned with financial surprises like replacing an engine might find that other solutions offer peace of mind.
For many vehicles, caring for your engine by doing regular maintenance like oil changes and repairs can help prolong the health of your engine. Ensuring that your engine is receiving routine check-ups and fixing issues as they arise can help that engine running smoothly for a long time.
If there’s still concern though, extended warranties may offer a solution to avoid paying out of pocket fees for fixes down the road. Similarly, Mechanical Breakdown Insurance (MBI) is offered by some insurers and acts like an extended warranty to cover specific repairs, including engine problems, usually on newer cars.
