Car insurance generally does not pay for a new engine if it fails due to wear and tear, age, or lack of maintenance. Coverage only applies if the engine is destroyed by a specific, covered event—such as a collision, fire, theft, or flood—and you have comprehensive or collision coverage.
If you have comprehensive coverage as part of your auto insurance policy, the cost of repairing or replacing your engine may be covered. Your insurance provider will typically reimburse you for the necessary repairs or replacement, minus any applicable deductibles.
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.
Whether it's routine maintenance, a mechanical failure or a blown engine, car insurance will most likely not cover the costs of repairing or replacing your vehicle. Hopefully, your car keeps running smoothly, but plan to pay out of pocket for routine maintenance or for a mechanic if your car breaks down.
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.
In this case, you would file a claim under your collision coverage to help pay for repairs. Mechanical Breakdown Insurance (MBI): Some insurance companies offer MBI as an optional add-on to standard auto policies. This coverage specifically addresses mechanical failures, including blown engines.
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.
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.
This is typically not covered under standard auto insurance. These types of failures are considered part of regular vehicle upkeep. Engine failure from internal mechanical breakdowns: Auto insurance generally doesn't cover mechanical issues unrelated to an accident.
Standard car insurance policies may not cover engine damage. But you can get it as an add-on cover to get coverage for engine damage. An engine protection add-on plan will cover the costs associated with repairing or replacing the engine system.
Here's a list of repairs generally not covered by auto insurance:
If a crash leaves your engine beyond repair, comprehensive insurance should cover the cost of fixing or replacing it. If the other driver caused the accident, their insurer should foot the bill. But if you only have TPO or TPFT cover, you'll need to pay for repairs yourself.
If you plan to sell your car in the near future, buying a new one might be a better investment. On the other hand, if you're looking to keep your car for many years, replacing the engine could extend its life significantly, making it a cost-effective solution in the long run.
Less wear and tear, more efficient combustion, and less internal friction on old parts can lead to more miles per gallon (mpg) as you drive. The mpg will always depend on other factors, including road conditions and driving habits. Still, a new engine can help give you an extra boost.
Engine or Transmission Damage
The engine and transmission are some of the costliest components to replace, which can result in a totaled designation.
Your dealership will need to do an evaluation of your car to offer you an accurate trade-in value, but the general rule of thumb is almost any kind of car dealership will trade-in any kind of vehicle as long as it is driveable. If they can't fix it and sell it on their lot, chances are they know another lot that will.
When does car insurance cover engine repair? If you have comprehensive coverage and collision coverage, you're generally covered for engine repairs if the engine is damaged in an accident or due to an event outside of your control, such as a tree limb falling on your vehicle.
No, a standard car insurance policy doesn't cover engine failure unless it is related to a covered accident. Auto insurance policies generally do not cover engine failure caused by routine wear and tear, as insurers consider this a maintenance issue.
The Powertrain Warranty covers components such as the engine, transmission, and drivetrain.
What Next? 3 options for a financed car engine failure
When deciding whether to file a claim, consider whether the cost of repairing your car is less than or comparable to the cost of your insurance policy deductible. You'll also want to check whether you're required to report the accident to the insurer or your local transportation authority.
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.