Car Insurance & Engine Failure: What's Covered

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Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on November 3, 2024

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated November 3, 2024

Visit author page

3 minute read

Article Contents

Engine failure is a dreaded scenario that occurs more commonly than you think. A broken down engine can leave your car completely inoperable and cost a ton in repair costs, so it’s natural to wonder whether your insurance policy will cover engine failure. Read on to find out which situations your insurance policy will cover your repair costs and what other options can cover an engine failure.

Does Insurance Cover Engine Failure at a Glance

  • Engine failure may be covered by your auto insurance policy in certain circumstances.
  • If you bought a new vehicle, an extended warranty can cover mechanical breakdowns such as engine failure.
  • Not every kind of insurance coverage will allow you to file a claim on an engine failure.

What Type of Car Insurance Covers Engine Failure?

Familiarizing yourself with the basics of auto insurance in Ontario is an important step to understanding whether your policy covers engine failure.

Before you can legally drive in Canada, you need to have an auto insurance policy. The type of coverage you have on your policy dictates what kind of damage is covered by your insurance policy. 

Engine damage
source
Collision
coverage
Comprehensive
coverage
All perils
coverage
CollisionsCoveredNot coveredCovered
Natural disastersNot coveredCoveredCovered
VandalismNot coveredCoveredCovered
TheftNot coveredCoveredCovered

In general, standard auto insurance policies do not cover engine failure unless it results from a specific incident that is covered by your policy. If your engine fails due to wear and tear, lack of maintenance, or other preventable issues, your auto insurance will likely not cover the costs. Insurers typically view maintenance as the owner’s responsibility, so engine failures resulting from neglect are not covered.

What Causes Engine Failure?

Engine failure can occur for a variety of reasons, and understanding these causes can help you prevent costly repairs. Here are some of the most common culprits:

Overheating:

This is often caused by coolant leaks, a malfunctioning thermostat, or a broken water pump. When the engine runs too hot, it can lead to severe damage, including warped cylinder heads.

Oil Starvation:

Engines rely on oil for lubrication. If the oil level is low due to leaks or if the oil hasn’t been changed regularly, engine components can seize up, leading to failure.

Neglected Maintenance:

Regular maintenance is crucial. Failing to change oil, replace filters, or check fluid levels can lead to a host of problems, including engine failure.

Faulty Spark Plugs:

Old or corroded spark plugs can prevent the engine from starting properly and may lead to misfires that damage engine components over time.

Timing Belt Failure:

If the timing belt breaks, it can cause catastrophic engine damage, particularly in interference engines where the pistons and valves occupy the same space.

Understanding these causes is vital since many of them can be prevented with proper care and maintenance.

What Other Options Cover Engine Failure?

If you’re concerned about engine failure and want additional protection beyond standard auto insurance, consider either mechanical breakdown insurance (MBI) or extended warranties. These options can better guarantee the coverage of your vehicle’s repairs when an engine failure does happen.

Mechanical breakdown insurance is designed to cover repairs for mechanical failures that are not the result of accidents. This includes issues that arise from normal wear and tear such as transmission damage or engine failures. However, not all insurers offer MBI, and eligibility may depend on the age and mileage of your vehicle.

If you’ve just bought your car, you have the option to purchase an extended warranty from the dealership or manufacturer. These warranties can provide coverage for engine repairs after the original warranty expires, but they often come with specific terms and conditions.

Choosing Between Mechanical Breakdown Insurance and Warranties

When deciding between mechanical breakdown insurance and extended warranties, there are a few factors you should consider.

Cost is usually the biggest consideration when choosing between MBI and extended warranties. MBI is generally less expensive than extended warranties. For example, MBI premiums can range from $50 to $150 per year, while extended warranties can cost anywhere from $1,500 to $6,000, depending on the coverage.

MBI typically covers a broader range of mechanical failures, while extended warranties may have more exclusions with specific conditions. Review the fine print of each option to understand what is and isn’t covered. Additionally, MBI often allows you to choose your repair shop, whereas extended warranties may require you to use specific service providers.

MBI usually comes with a deductible, while many extended warranties do not. Consider how much you’re willing to pay out-of-pocket for repairs. Ultimately, the best choice depends on your vehicle’s age, your budget, and how much risk you’re willing to take on.

Maintenance Tips to Prevent Engine Failure

Preventing engine failure is often easier and cheaper than dealing with repairs. Here are some maintenance tips to keep your engine running smoothly:

Your engine oil keeps the moving parts lubricated and operating smoothly. Change your oil every 10,000 to 15,000 kilometres, or as recommended by your manufacturer. This helps maintain proper lubrication and prevents sludge buildup.

Regularly check and top off your coolant, oil, and transmission fluid. Low levels can lead to overheating and other issues with your engine.

Check your engine’s parts for signs of wear, such as cracks or fraying. Replace them as needed to prevent breakdowns.

If your check engine light comes on, don’t ignore it. Have your vehicle inspected by a qualified mechanic to catch potential problems early.

Avoid aggressive driving, which can put extra strain on your engine from quick acceleration and hard braking. Also, be mindful of towing heavy loads and using your air conditioning excessively while idling.

Maintenance Tips to Prevent Engine Failure

By following these tips, you can help extend the life of your engine and reduce the likelihood of costly failures.

Key Advice From MyChoice

  • Regularly check your engine and perform maintenance to minimize the risk of an engine failure.
  • Consider purchasing mechanical breakdown insurance or an extended warranty for your vehicle if you’re worried about engine failures.
  • Your regular insurance policy coverage will only cover engine failure if it’s a result of a collision or event you’re insured against.

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