Will Auto Insurance Cover Engine Failure?

Ever found yourself wondering if your trusty auto insurance would cover you when you experience an engine failure?

We’ve all been there, questioning the reliability of our coverage when faced with the daunting possibility of engine failure.

Buckle up as we look into the intriguing world of auto insurance and unravel the mysteries surrounding whether it’s got your back when the heart of your vehicle decides to call it quits.

Get ready for a ride through the twists and turns of “Will Auto Insurance Cover Engine Failure?”, because your peace of mind is our destination!

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Will auto insurance cover engine failure?
Source: savvy

Will Auto Insurance Cover Engine Failure?

Generally, auto insurance, including gap insurance, usually doesn’t cover engine failure unless it directly results from an accident or another incident covered by your insurance policy.

However, there may be some coverage options that can help your finances even when there is no accident.

For instance, mechanical breakdown insurance is a specific type of coverage that targets situations that are not usually covered.

Mechanical breakdown insurance is one such coverage designed specifically for situations not typically addressed by standard policies.

Additionally, if you’ve recently bought a car or have an extended warranty, it is more probable that a mechanical breakdown will be covered, but not by your auto insurance.

What does Auto Insurance do about Engine Failure?

Usually, car insurance does not cover engine failure, even with full coverage.

The only case is if a covered claim caused the mechanical issue or blown engine.

Auto insurance policy with full coverage has two coverage options that will often pay to fix your engine if a covered claim damages it.

However, these coverage types would not cover mechanical issues or a blown engine from normal use.

Here are the coverage types and what they cover:

  • Collision: Covers the cost of fixing or replacing your car after an accident or collision of any sort.
  • Comprehensive: Covers the cost of claims that are not related to collision coverage, such as theft, vandalism, fire, damaged windows or windshields, weather events and if you hit an animal.

Does gap insurance cover engine failure?

No, gap insurance does not cover engine failure.

Gap insurance is an extra coverage that you can add to your car insurance policy.

If you have gap insurance, it will cover the gap between the market value of your wrecked car and the amount you still have to pay on it.

Gap insurance is something drivers who borrow or lease their vehicles should think about.

Especially if they are concerned about being “underwater” on their loan or lease if the car is written off in an accident.

This coverage is very narrow and only works if your car is written off in a covered claim and you owe more than what the car is worth.

It does not cover engine failure, normal use or other mechanical issues with your vehicle.

Is there any insurance that includes coverage for engine failure?

In specific situations, you can obtain financial protection for engine failure or other mechanical issues that necessitate repairs.

Typically, warranties, if purchased, cover events like engine failure.

Additionally, you might want to explore the option of purchasing mechanical breakdown insurance (MBI) if it is offered by your auto insurance company.


When you buy a car, whether it is brand new or fairly new with low miles, you will probably be offered a car warranty.

There are two main kinds of warranty coverage you may get:

  • Bumper-to-bumper warranty

Even though the name implies coverage for the whole car, the bumpers themselves are not covered, only the parts between them.

This coverage covers the cost of fixing most car parts or systems, including those that cause mechanical breakdown or engine failure.

If the warranty does not leave out a part or system, it is covered by a bumper-to-bumper warranty.

  • Powertrain warranty

A powertrain warranty is specific to the parts that make the car run. For instance, drive axles, engine and transmission.

Unlike the bumper-to-bumper warranty, the powertrain warranty only states what it covers, not what it leaves out.

You can prolong both warranty options beyond the manufacturer expiration, whichever comes first, at an extra cost based on mileage or age.

For instance, a three-year/30,000 mile warranty will end when the car is three years old or it reaches 30,000 miles driven, whichever comes first.

Insurance for Mechanical Breakdowns

Some car insurance companies offer Mechanical Breakdown Insurance (MBI) as an optional coverage.

MBI serves as an alternative to extended warranties and may offer more extensive coverage than what extended warranties provide.

MBI includes coverage for engine failure but does not cover routine maintenance or wear-and-tear items such as brakes.

Similar to a warranty, mechanical breakdown insurance has a specified coverage duration.

It’s important to note that, the duration often is contingent on the mileage your vehicle has accumulated.

Not all auto insurance providers include this coverage, so if you’re interested, you may need to explore different options.

The overall cost of auto insurance, including MBI, can vary among carriers.

To determine the specific cost for your situation, it is advisable to request a personalized quote from insurance companies that offer MBI.


Auto insurance usually does not cover engine failure, unless a covered claim causes it. Some examples of covered claims are an accident or a fire,

However, you may have other options to protect your finances if your car suffers from a blown engine.

You may have a warranty that covers some or all of the repair costs, based on the type and duration of the warranty.

Subsequently, you may also consider buying mechanical breakdown insurance, if your car insurance company offers it.

MBI pays for the repair of your engine and other parts that your auto insurance does not cover.

Engine failure can be a costly and stressful situation, but you don’t have to face it alone.

By knowing your coverage options and choosing the best one for your needs, you can save money and hassle, and keep your car running smoothly.

Thank you for reading, and happy driving!


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