No, GAP insurance does not cover a blown engine; it covers the financial "gap" between what you owe and your car's value if it's totaled in a covered incident like a collision or theft, not mechanical failures or wear and tear. For engine issues, you need Mechanical Breakdown Insurance (MBI) or an extended warranty to cover costly repairs for mechanical breakdowns.
GAP insurance does not apply in the event of engine failure, mechanical malfunctions, owner death, or in cases where extended warranty coverage conflicts. For more insurance information like comprehensive insurance coverage and more, visit Suntrup Automotive Group.
No, standard car insurance generally does not cover engine failure from normal wear, lack of maintenance, or overheating, as these are considered preventable; however, it may cover engine damage if it's caused by a covered peril like a collision, fire, flood, vandalism, or animal damage (with comprehensive coverage), or if you have a separate Mechanical Breakdown Insurance (MBI) policy or extended warranty.
Engine or Transmission Damage
The engine and transmission are some of the costliest components to replace, which can result in a totaled designation.
Does car insurance cover mechanical breakdowns? No – car insurance covers you for loss or damage resulting from unforeseen events like accidents and theft, as opposed to mechanical breakdowns due to wear and tear.
Comprehensive car insurance
For example, if it stops working due to damage caused by an accident, vandalism, theft, or a natural disaster, your policy should cover you. But if your engine fails due to normal wear and tear or a lack of maintenance, you probably won't be able to make a claim.
What Next? 3 options for a financed car engine failure
replacing an engine is one of the most expensive car replacements you can have. The actual engine replacement costs between $4,000-$14,000+ and labor can run you another $2,000-$4,000.
Insurers Calculate Damages for a Victim's Pain and Suffering
They can tally up a sum of all measured economic damages, such as lost income, property damage estimates, and medical expenses. However, to account for non-economic damages, they may use a formula known as the multiplier method.
You may have coverage for engine failure if your warranty is still active or if you purchased optional mechanical breakdown insurance (MBI). Your engine may be covered by car insurance if the failure results from a collision, depending on your coverage and the circumstances of the accident.
Here's a list of repairs generally not covered by auto insurance:
No, standard car insurance generally does not cover engine failure from normal wear, lack of maintenance, or overheating, as these are considered preventable; however, it may cover engine damage if it's caused by a covered peril like a collision, fire, flood, vandalism, or animal damage (with comprehensive coverage), or if you have a separate Mechanical Breakdown Insurance (MBI) policy or extended warranty.
1. The Damage is Less Than or Slightly Above Your Deductible. If repairs will cost $800 and your deductible is $500, you'll only get $300 from insurance—likely not worth the potential premium increase. This is especially true if you have previous claims on your record.
Repairing an engine is often cheaper upfront, but frequent repairs can add up. On the other hand, replacing an engine has higher initial costs but can be more cost-effective over time due to reduced maintenance needs.
If your engine blows but you still owe money, you are still responsible for the loan payments; the lender doesn't care about the car's condition, just the debt, so you must either pay for repairs, find a way to sell or trade it (potentially with a new loan for the repair/shortfall), or risk default, repossession, and owing the lender money even after they sell the scrap vehicle. Options include getting an estimate to fix it, selling it as-is for parts, contacting the lender to discuss options, or even using comprehensive insurance if you have it.
It's risky to drive at all with a blown motor. Even short distances can cause further damage to the combustion chamber or crankshaft, making repairs more expensive — or impossible.
Only if the engine fails because of a fire. Otherwise, you're on your own. Sometimes, if failure is caused by an insured event (like a collision). But wear and tear or lack of maintenance won't be covered.
You may want to take it to a few local dealers and see what they will give you for it, for trade-in value. Knowing that the engine is blown and the cost to replace it, you need to try and get an idea of the value of it and what a dealer may give you if you buy a car from them and use this to trade it in.