Does Insurance Cover Engine Damage? It Depends…

​Does auto insurance cover engine failure?

​Learn what’s covered under comprehensive vs. collision vs. mechanical breakdown insurance.

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If your engine suddenly fails, you might wonder if your insurance will help cover the cost. The answer? It depends on how the damage occurred and what kind of coverage you carry.
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Let’s break it down by coverage type and common scenarios:

1. What Auto Insurance Typically Covers
Your standard auto insurance is designed to protect against sudden, accidental events—not wear and tear. Here's what that means:

• Comprehensive coverage covers damage from non-collision events like fire, flood, theft, vandalism, and fallen objects. If your engine was damaged due to flooding or fire, this coverage may apply.
• Collision coverage helps if the engine damage was caused by an accident (e.g., a front-end crash damaging internal components).
• Liability coverage (required in most states) covers damage you cause to other people or vehicles—not your own car or engine.

2. What Insurance Typically Does Not Cover

• Mechanical failure or wear and tear: If your engine seizes up due to poor maintenance, old age, or internal failure, it’s considered a mec anical breakdown—and it’s not covered.
• Neglect-related damage: Skipping oil changes, using the wrong fuel, or ignoring warning lights can lead to engine issues that your insurance won’t pay for.

3. Mechanical Breakdown Insurance (MBI)
Some insurers offer mechanical breakdown insurance, which functions like a limited warranty and covers engine, transmission, and other internal components. It’s often only available for newer vehicles (typically under 15 months old and under 15,000 miles).

MBI can cover repairs from internal failures not caused by accidents—but it’s an optional add-on and not included in standard auto policies.

4. When Engine Damage Might Be Covered
Here are a few examples of scenarios where coverage could apply:

• Flooded during a storm? Covered under comprehensive.
• Car caught fire due to electrical fault? Likely covered under comprehensive.
• Engine failed after hitting a deep pothole? May fall under collision, depending on your policy.
• Car stolen and returned with a damaged engine? Covered under comprehensive.

⚠️ Pro Tip: Documentation is key. Your insurer may require proof that the engine damage was caused by a covered event—not neglect or lack of maintenance.

You can also contact us for low cost policy options that are specifically to help cover big repair and deductible costs for your home and auto.

Disclaimer:
This article is for informational purposes only and does not constitute legal or insurance advice. Coverage depends on your policy terms and the nature of the loss. Always speak with a licensed agent to confirm your specific coverage.