Does Insurance Cover Engine Failure? The Complete 2026 Guide

When your car engine unexpectedly breaks down, the first question that comes to your mind is: Does car insurance cover engine failure?

Engine repairs cost from $3,000 to $10,000+, depending on the vehicle and damage. Unfortunately, many drivers assume that their insurance policy covers engine failure—but when they find out the reality, it's too late.

Understanding what your insurance actually covers can save you from unexpected financial stress and costly surprises. In this guide, you'll know:

• When does car insurance cover engine failure?
• When it does not.
• The difference between insurance and warranty.
• Mechanical breakdown insurance (MBI) explained.
• How to protect yourself from costly engine repairs.

Understanding Engine Failure: Causes, Signs, and Risks

Engine failure usually occurs when the major internal components stop functioning properly, causing the vehicle to stall, overheat, or become completely inoperable.

Common Causes Include:

• Lack of oil or poor maintenance
• Internal component damage
• Water entering the engine (Hydrostatic lock)
• Manufacturing defects
• Overheating
• Timing belt failure

Signs Your Engine Might Be Failing:

• Unusual noises like knocking, ticking, or grinding
• Frequent stalling or difficulty in starting the car
• Loss of power or poor acceleration
• Smoke or an unusual smell
• Dashboard's warning lights

Risks of Ignoring Engine Issues:

• Costly repairs
• Total engine replacement if damage is severe
• Safety hazards while driving on the road
• Reduced vehicle resale value

Does Insurance Cover Engine Failure?

Usually, no. Standard car insurance does not usually cover engine failure caused by mechanical breakdown or wear and tear.

However, coverage depends on the type of policy and cause of damage. Let's break it down.

Liability Insurance

• Covers: Damage you cause to others.
• Does Not Cover: Your own damage.

Liability insurance only pays for third-party damage; it never covers your own mechanical issues.

Collision Coverage

• Covers: Engine failure caused by a sudden accident.

If your car engine fails because of a car crash (for example, front-end collision damages engine components), your insurance policy may cover repair.

Covered Example:

• You crash into another vehicle.
• The impact damaged your radiator and engine block.
• Insurance pays after the deductible.

Not Covered Example:

• The engine dies due to poor maintenance.
• Internal mechanical failure without accident.

Comprehensive Coverage

Comprehensive insurance covers engine damage if it is caused by external events.

Covered situations may include:

• Flood
• Falling Objects
• Fire
• Vandalism
• Theft
• Animal damage (rodents chewing wiring)

If floodwater enters your car engine and causes hydrostatic lock, comprehensive insurance may cover it. But if the engine fails due to a lack of oil or age, it won't.

Mechanical Breakdown Insurance (MBI)

Mechanical Breakdown Insurance (MBI) covers the cost of repairing or replacing the electrical parts of the vehicle. The MBI is different from standard car insurance.

It covers:

• Engine failure
• Transmission issues
• Electrical system failures
• Drive components

MBI is for newer vehicles (usually under 15 months old or under a mileage limit).

When Will Insurance Not Cover Car Engine Failure

Many policies do not cover engine failure in these situations:

• Lack of maintenance
• Normal wear and tear
• Old age breakdown
• Manufacturer defects
• Oil neglect

Insurance policies are meant for accidental damage, not routine mechanical deterioration.

Does Car Insurance Cover a Blown Engine

A blown engine is usually not covered unless it was caused by:

• Accident
• Flood
• Fire
• Vandalism

Does not cover if caused by:

• Overheating
• Oil starvation
• Neglect
• Age

What About Flooded Engine Damage

Flood damage is reported as a comprehensive insurance claim. If your engine fails after driving through deep water:

• Comprehensive insurance typically covers it.
• Deductible applies.
• The vehicle may be deemed a total loss by the insurer when the repair cost exceeds its market value.

Does Insurance Cover Damage After Hitting a Pothole

• If the pothole impact causes immediate damage, collision coverage may apply.
• If damage develops later due to mechanical stress, it may be denied.

Warranty vs Insurance: What's the Difference?

Engine Repair Cost Explained

• Minor Engine Repair: $500–$2,000
• Head Gasket Replacement: $1,500–$3,000
• Engine Rebuild: $2,500–$6,000
• Engine Replacement: $4,000–$10,000+

Hybrid and electric vehicles cost even more.

Expert Tips to Protect Yourself from Engine Failure Cost

• Keep service records; otherwise, insurance may be denied if neglect is suspected.
• Consider choosing an extended warranty if your vehicle is nearing factory warranty expiration.
• If you live in flood-prone areas, add comprehensive coverage.
• Compare mechanical breakdown insurance, as some insurers offer affordable add-ons for new vehicles.
• Review your insurance policy annually.

Frequently Asked Questions

How to get insurance to cover a blown motor?

Most standard insurance policies do not cover engine failure unless it is caused by events like accident, fire, or theft. If your car suffers engine damage due to wear and tear or mechanical failure, your insurance will not cover repairs for a blown engine.

Does comprehensive insurance cover engine failure?

Yes, if the damage is caused by accidents, theft, fire, or natural disasters.

Does full coverage insurance cover engine failure?

Not usually. Full Coverage (liability, collision, comprehensive) only covers engine damage if caused by accidents or other external factors.

Can insurance cover engine failure resulting from low levels of oil?

No, negligence or poor maintenance, like running the vehicle without engine oil, is not covered by standard insurance.

Does insurance cover engine failure after overheating?

Unusually, no, unless the overheating is caused by a covered event such as an accident.

Is it worth claiming engine damage on insurance?

Only if:

• The cause is covered.
• It won't drastically increase premiums.
• Repair costs exceed your deductible.

Final Verdict: Does Insurance Cover Mechanical Failure?

Before you buy a new car or meet with an accident, it's important to take some time to compare policies and understand what is included or what is not. In most cases, a standard insurance policy usually won't pay for engine failures due to mechanical breakdown. It only covers engine damage if it results from:

• Falling objects
• Vandalism
• Fire
• Flood
• Collision

Always check your policy, exclusions, and confirm coverage with your provider before making any claim. Better safe than sorry—double-check to understand the coverage details before trouble hits.