Does Car Insurance Cover Engine Failure? Here’s What You Need to Know

Having car engine failure can be an extremely stressful and expensive experience for any driver. Not only does it leave you stranded, but engine repairs or replacement can cost thousands of dollars.

So does car insurance cover engine failure?

Unfortunately, in most cases the answer is no. Standard car insurance policies are not designed to cover mechanical breakdowns or failures. However, there are some limited situations where engine damage may be covered if it results from a covered peril.

In this comprehensive guide, we’ll explain:

• What causes engine failure and how much it costs to repair
• Why standard car insurance doesn’t cover engine failure
• Limited situations where engine damage may be covered
• Your options for covering engine breakdown costs

What Causes Engine Failure?

Internal combustion engines have hundreds of moving parts that need to work together perfectly to run properly. From pistons and cylinders to valves and timing chains, there are many components that can fail.

Some of the most common causes of engine failure include:

• Overheating – This can warp cylinder heads, seize pistons, and cause engine bearings to fail. Cooling system issues, low oil levels, and poor maintenance often lead to overheating.

• Lack of lubrication – Oil keeps the engine’s moving parts from grinding and wearing down. Low oil levels or oil leaks can cause premature engine wear and failure.

• Timing chain/belt issues – Problems with these parts cause valve and piston timing issues that can damage cylinders, valves, and pistons.

• Sludge buildup – Dirty oil and lack of maintenance allows thick sludge to clog engine passages and coat components. This prevents proper operation.

• Manufacturing defects – Improperly machined parts, faulty components, and casting flaws during manufacturing can lead to early engine failure, even with proper maintenance.

The repair costs for a broken engine can be staggering:

• Engine replacement – $4,000 to $8,000+
• Rebuilt/remanufactured engine – $2,000 to $6,000
• Repairs (pistons, head gasket, etc) – $500 to $2,000+

With bills like that, engine failure can devastate your finances if you’re not prepared. So what does your car insurance cover?

Why Doesn’t Car Insurance Cover Engine Failure?

In most cases, standard car insurance policies will NOT pay for repairs or replacement if your engine suddenly fails. Here’s why:

Car insurance is designed to cover accidents and damage from covered perils, not mechanical breakdowns. Policies like collision, comprehensive, and liability coverage protect you when your car is damaged in an accident, damaged by weather, vandalized, or stolen.

But they are not maintenance policies or warranties. Wear and tear damage and mechanical failures fall outside the scope of accident insurance coverage. Auto insurance also does not cover maintenance, oil changes, tune ups, and other servicing.

Engine failure results from mechanical breakdown, normal wear and tear, or lack of maintenance. Unless external damage contributed to the failure, it’s considered a maintenance issue and not covered.

Covering all breakdowns would result in incredibly high premiums. If insurance companies paid for any mechanical failure, the cost of policies would skyrocket to cover these expenses. Most drivers would not be able to afford the premiums.

So in general, you cannot make an engine failure claim on your car insurance. The damage will not be covered unless very specific circumstances apply.

When Engine Damage MAY Be Covered

In some rare situations, you may be able to file a claim if engine damage results from a covered loss. Here are some examples:

You hydrolock the engine by driving through deep water. Comprehensive coverage will pay for flooding damage, which could include repairing engine components damaged by water ingestion.

An accident caused external damage that led to engine failure. If a covered accident bent a frame rail or damaged cooling system parts, and this caused the engine to overheat and fail, insurance would pay for the engine under collision coverage.

A covered peril like fire or theft resulted in engine damage. If vandals cut spark plug wires or a fire damaged wiring and hoses under the hood, comprehensive coverage will pay to repair the resulting engine damage.

Engine sludge buildup caused failure, due to an accident or covered loss. If an accident caused oil leaks that resulted in sludge that later killed your engine, the insurance may pay to rebuild the engine.

As you can see, the engine damage must directly result from, or be tied to, a separate covered loss for insurance to pay in these limited situations. If the failure just happened on its own, it is NOT covered.

Your Options for Covering Engine Breakdown Costs

Since you can’t rely on car insurance when your engine fails catastrophically, what options do you have for covering costly repairs or replacement? Here are some alternatives to explore:

• Manufacturer’s Warranty – Many new vehicle warranties provide powertrain coverage for the engine for 3 years/36,000 miles. This protects against defects.

• Extended Warranty – You may be able to purchase an extended repair warranty beyond the manufacturer’s coverage for added peace of mind.

• Vehicle Service Contract – Like an extended warranty, a VSC offers continued protection from unexpected repair bills.

• Save up an Emergency Fund – Slowly build up a savings account with 3-6 months living expenses to tap for big bills like engine replacement.

• Mechanical Breakdown Insurance – Some insurers offer this optional coverage to pay for breakdowns after a deductible is met.

• Credit Cards with Car Rental Insurance – Cards like Amex Platinum provide complimentary rental coverage if engine failure leaves you without a vehicle.

No one wants to deal with major engine problems, but they happen to even well-maintained vehicles. While your standard car insurance from Autobild won’t cover engine failure, being proactive about your savings and alternate coverage will give you financial peace of mind if your engine suddenly lets go.

Frequently Asked Questions about Engine Failure and Car Insurance

Many Autobild readers have additional questions about whether their car insurance policies cover mechanical failure. Here are answers to some of the most common queries:

Does comprehensive insurance cover blown engines?

Comprehensive coverage cannot be used for mechanical breakdowns or gradual wear and tear damage. It only covers sudden damage from events like fire, flooding, theft, vandalism, and animal collisions. So blown engines are not covered.

Will insurance replace an engine after sludge buildup causes failure?

Sludge causing an engine to fail happens slowly over time due to lack of maintenance. It is not considered a covered loss, so insurance will not pay to replace an engine damaged by sludge build up.

If an accident caused radiator damage that resulted in engine failure later on, is it covered?

Yes, in this situation the engine damage directly resulted from an accident that falls under collision coverage. If you can prove the accident led to system damage that caused engine failure shortly after, insurance should cover the cost of engine repair or replacement.

Does lienholder insurance on a leased vehicle cover engine breakdown?

Lienholder or leaseholder insurance is intended to only cover the difference between the car’s value and remaining loan balance if it is totaled, not mechanical breakdowns. Engine failure would fall to the lessee to repair.

What if road debris caused damage that led to catastrophic engine failure?

Comprehensive coverage pays for damage from flying road debris. So if you could prove that road debris hit and punctured a radiator or oil pan which later caused engine failure, the repairs may be covered under comprehensive.

Can I add mechanical breakdown coverage to my existing car insurance policy?

Some major insurance carriers like Progressive and Geico do offer optional mechanical breakdown or extended warranty coverage for an additional premium. Talk to your insurer to see if they offer this type of protection.

If my engine was flooded in a storm, will insurance pay for repairs?

flooding damage from a severe storm would fall under your comprehensive coverage, so any resultant damage to engine components would likely be covered, as long as the policyholder was not driving negligently into clearly flooded roads.

What if an oil leak from an accident led to lack of lubrication that fried my engine?

Again, as long as the damage resulted from, and happened shortly after an accident that falls under your collision coverage, the insurance company should pay for repairs or replacement in this situation. The key is proving the accident led to the mechanical failure.

Does lemon law protect against engine failure in new cars?

Lemon laws don’t specifically cover engine failure, but provide protection against any manufacturer defect in new vehicles that the maker can’t repair after multiple attempts. Engines that fail very early on may qualify the car for replacement or refund under lemon law.

We hope these insights help explain the limitations on using car insurance to pay for engine failure damages. While it may cover failures tied directly to an accident in rare cases, standard policies are not designed to cover mechanical breakdown costs. Using other protection like warranties and extended service contracts is wise.