Does Full-Coverage Insurance Cover Engine Failure?

Full coverage will not cover engine failure that isn’t accident-related. Mechanical breakdown insurance or an extended warranty might cover engine troubles.
Written by Hillary Kobayashi
Edited by Amy Bobinger
Most types of
car insurance
—including full-coverage insurance—won’t cover engine failure unless it stems from a recent claimable incident, like a car accident. Mechanical breakdown insurance or an extended warranty might be able to cover engine problems. 

Full-coverage car insurance usually doesn’t cover engine failure

Generally, full-coverage insurance doesn’t cover engine failure unless you can link the engine damage to a covered insurance claim. If the harm to your engine did come from a recent accident, then it should be covered.
A full-coverage car insurance policy includes two types of insurance that will cover problems with your engine under the following circumstances: 
  • Comprehensive coverage
    : Since comprehensive insurance covers damage caused by natural events, if a tree fell on your car and heavily damaged your engine, it could pay for your engine’s repair costs. 
  • Collision coverage
    : Collision insurance covers accidents and collisions with objects. So if your engine is wrecked in a car accident, or if you damage your engine by running into a tree, collision coverage will likely pay out to fix it.
Comprehensive and collision coverage usually have an insurance deductible. Reach out to your insurance provider if you think your engine problems might be eligible for coverage under your comprehensive or collision insurance. 
While full-coverage insurance won’t typically cover engine failure, it does a good job of financially protecting your vehicle. The average cost of full coverage in the US is about $165 a month. Check out the following average rates for full coverage
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An extended warranty might cover engine failure

extended warranty
, also called a mechanical warranty, will cover a blown engine if it happens within the terms of the warranty. Extended warranties can be purchased from your car dealership, but there can be strict regulations on which vehicles qualify for extended warranties. Most car dealers will offer you a choice of car warranty plans and term lengths.  
An extended warranty will cover your car’s mechanical components if they are not the result of wear and tear or a car accident. This is because wear and tear costs are paid out of pocket and auto insurance covers expenses related to car accidents. 
If you still have a pretty new car, you should also take a look at the manufacturer’s warranty to see what it covers. 

Mechanical breakdown insurance might cover engine failure

If you opted for
mechanical breakdown insurance (MBI)
through your insurer, they will likely cover your engine repair costs.
Mechanical breakdown coverage is an insurance add-on that covers vehicle damage that is not related to normal wear and tear or an accident. It generally covers the following mechanical failures:
  • Engine parts, including the oil pump and water pump
  • Drivetrain
  • Transmission
  • Exhaust
  • Brakes
  • Electrical components
Some MBI plans will also cover mechanical problems like the steering wheel, air conditioning, and fuel system. Review your coverage details to see what your policy covers. 


Will gap insurance cover engine problems? 

Gap insurance
is a type of car insurance coverage that covers the amount of money between your car’s value and what you are still paying off on your car’s lease or loan after a total loss. It will not cover engine troubles or mechanical issues. 

Will uninsured motorist insurance cover engine failure? 

Uninsured motorist coverage
is a type of auto insurance coverage that pays out if you are struck by an at-fault driver who doesn’t have car insurance. It will not pay for engine failure. 

Will liability coverage pay for engine repairs?

Liability coverage
doesn’t cover your own car’s engine failure. It will cover medical expenses and property damage expenses for other drivers and their cars if you are at fault in an accident. 

Meet our experts

Hillary Kobayashi
Hillary Kobayashi is an insurance writer and editor specializing in insurance and finance topics. Hillary’s mission is to use her knowledge and love of education to help car owners better understand how they can save time and money on car ownership. The articles Hillary has published for Jerry span topics from state-specific bill of sale requirements to SR-22 insurance information.
Prior to joining Jerry, Hillary spent over ten years in education at Pacific University and the University of Oregon.
Amy Bobinger
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Licensed Insurance Agent — Expert Insurance Editor
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars.
Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.

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