Does Car Insurance Cover Engine Failure? When It Can Be, When Not, and What You Can Do

Car insurance is designed to protect drivers from the financial impact of accidents and certain types of damage—but not every problem a vehicle faces falls under that coverage. One of the most common questions drivers have is whether car insurance covers engine failure, especially since repairs can be so costly.

In this article, we’ll break down when engine failure may be covered, when it typically isn’t, and what alternatives drivers can turn to if they find themselves dealing with this issue.

Key Takeaways

• Car insurance may cover engine damage if caused by an accident, fire, flood, vandalism, theft, animals, or falling objects.
• Collision and comprehensive coverage are the two types that may apply; liability does not cover your own engine.
• Most engine failures from poor maintenance, overheating, or defective parts are excluded.
• Mechanical breakdown insurance (MBI) and extended warranties can help cover repair costs.
• Routine maintenance and proper recordkeeping are essential to avoid denials and protect coverage.

When Car Insurance Might Cover Engine Damage

There are many scenarios where engine damage can be covered under car insurance, depending on the cause. The key theme here is that these events must be sudden and accidental, rather than the result of long-term wear and tear or poor maintenance.

Situations that typically fall within the scope of standard auto insurance include:

• Accident-related damage — If your engine is damaged in a collision, it’s typically covered under your collision insurance.
• Natural disasters — Comprehensive insurance may cover engine damage caused by events like hurricanes, tornadoes, or earthquakes.
• Fire or theft-related incidents — If your car is stolen and returned with damage, or if a fire destroys engine components, comprehensive coverage usually applies.
• Vandalism — Deliberate damage, such as someone tampering with or destroying engine parts, is generally covered by comprehensive insurance.
• Water/flood — Floodwaters or heavy rain that damage your engine may be covered under comprehensive coverage, though exclusions may apply.
• Animal damage — If an animal chews through wiring or causes engine harm, comprehensive insurance may cover repairs.
• Falling objects — Damage caused by objects like tree limbs or debris striking your vehicle and affecting the engine is usually covered under comprehensive coverage.

What Type of Insurance Can Apply to Engine Failure?

A “standard” car insurance policy is often built on three main pillars: liability, collision, and comprehensive coverage. While liability protects other drivers, collision and comprehensive are what protect you against engine damage from accidents, theft, or sudden unexpected events—but not from routine maintenance issues.

• Collision Coverage: Pays for engine repairs if the damage is from an accident with another car or object.
• Comprehensive Coverage: May cover engine damage if caused by covered events like fire, flood, or vandalism.

Why Car Insurance Usually Doesn’t Cover Engine Failure

Routine maintenance checks and proper care of your vehicle are key to preventing the types of engine damage that car insurance won’t cover. Taking a proactive approach and paying attention to small details can help you avoid costly out-of-pocket repairs down the road.

Damage that isn’t typically covered by auto insurance include:

• Poor Maintenance — Failing to change the oil or perform basic upkeep can cause severe engine damage, which isn’t covered because it’s preventable.
• Overheating — Damage caused by issues like a broken radiator, faulty thermostat, or low coolant is considered wear and tear, not an insurable event.
• Improper Lubrication — Running the engine without enough oil or with contaminated oil can lead to internal damage, but insurance won’t cover it since it stems from neglect.
• Ignition System Component Failures — Problems with spark plugs, ignition wires, or coil packs are treated as maintenance issues and must be repaired at the owner’s expense.

Manufacturing defects are also excluded from car insurance coverage, with repairs typically only addressed through specialized warranties provided by the manufacturer.

What Type of Insurance Does Not Apply to Engine Failure?

Unlike collision and comprehensive coverage, liability coverage only pays for damage or injuries you cause to other people or their property—not your own engine. In many states, liability is the only insurance legally required, which provides no coverage for your own vehicle.

If you want coverage for accidents, theft, or sudden events that could damage your engine, you’ll need to add collision or comprehensive protections to your policy.

Alternatives to Car Insurance for Engine Repairs

Drivers do have several alternatives to standard car insurance for protecting their engine. Whether through specialized coverage, manufacturer warranties, or proactive maintenance, there are multiple ways to safeguard your investment beyond a conventional policy.

Mechanical Breakdown Insurance (MBI)

Mechanical Breakdown Insurance (MBI) is a type of coverage that helps pay for repairs to your vehicle’s mechanical and electrical components—including the engine, transmission, and other major systems—when they fail unexpectedly. In contrast to traditional car insurance, which generally only covers damage from sudden events, MBI is more similar to an extended warranty but typically offers broader protection and can cover repairs at any licensed repair shop.

For example, if a car’s transmission suddenly fails due to a mechanical issue, MBI could cover the repair costs—something a standard collision or comprehensive policy would not pay for.

Extended Warranties or Service Contracts

Extended warranties, or service contracts, are optional plans sold separately from standard car insurance that provide coverage for specific vehicle repairs, including engine components, after the manufacturer’s original warranty expires.

These can protect you from costly mechanical failures that wouldn’t be covered by traditional insurance, giving peace of mind for major repairs. However, these warranties typically have limitations, such as covering only a set timeframe or mileage, and may exclude certain types of damage or require repairs at approved service centers.

Routine Maintenance

The most effective way to protect your engine is by addressing issues before they lead to major failure.

Staying on top of oil changes, coolant levels, and manufacturer-recommended maintenance, while keeping detailed records, allows you to take a proactive approach that can prevent costly repairs. Maintaining thorough documentation of all services and repairs is also crucial, as it supports both warranty claims and insurance requests if an unexpected issue does arise.

Protect Your Car with GEICO

Engine failure is a major concern for drivers, as it can lead to costly repairs and leave you without a vehicle if you’re not sufficiently covered. While traditional auto insurance protects against engine damage from sudden events, GEICO also offers specialized options like Mechanical Breakdown Insurance to help fill the gaps.

Ready to ensure you’re adequately protected against the different types of engine failure? Obtaining a free quote from GEICO is easy—it takes just a few minutes and can be done either online or by phone.

Don’t wait—get your free quote today!