DOES AUTO INSURANCE COVER ENGINE FAILURE

Understanding whether auto insurance covers engine failure is a critical concern for drivers. This post clarifies the nuances, detailing when your policy might help and when it won't, empowering you to make informed decisions about your vehicle's protection.

Understanding Engine Failure and Auto Insurance

Engine failure is one of the most dreaded mechanical issues a car owner can face. It's not just the inconvenience of being stranded; it's the potentially astronomical repair bills that follow. In 2025, the average cost to repair or replace a car engine can range anywhere from $3,000 to $7,000, and sometimes significantly more for luxury or specialized vehicles. This stark reality leads many drivers to ask a crucial question: "Does auto insurance cover engine failure?" The short answer is complex, as standard auto insurance policies are primarily designed to cover damage caused by external, unforeseen events, not mechanical wear and tear or poor maintenance.

To truly understand this, we must differentiate between the types of damage an auto insurance policy typically covers and the inherent risks associated with vehicle operation and aging. Auto insurance is fundamentally about protecting you from financial loss due to accidents, theft, vandalism, and other specific perils. Engine failure, in most cases, is viewed as a mechanical breakdown resulting from the natural lifecycle of a component, lack of maintenance, or a manufacturing defect that occurred outside the policy's covered events. This distinction is paramount in determining whether a claim for engine failure will be approved.

The complexity arises because certain scenarios can blur these lines. For instance, if an engine failure is a direct result of a covered event, like an accident that caused oil to leak and the engine to seize, then the damage might be covered. However, if the engine simply gives out due to age, overheating from lack of coolant, or a worn-out part, it's generally considered a mechanical issue, not an insurable event under a standard policy. This guide aims to demystify these nuances, providing clear insights into what your auto insurance might cover and what steps you can take to safeguard yourself against the high costs of engine failure.

Key Auto Insurance Coverages Explained

To understand why engine failure is often excluded, it's essential to grasp the different types of auto insurance coverage available. Each type serves a distinct purpose, and their limitations dictate what is and isn't covered. In 2025, the landscape of auto insurance remains largely consistent in its core offerings, though premiums and specific policy terms vary widely by provider and location.

Liability Coverage

Liability coverage is mandatory in most states. It consists of two parts: bodily injury liability and property damage liability. This coverage pays for damages and injuries you cause to others if you are at fault in an accident. It does not cover damage to your own vehicle, including engine failure.

Collision Coverage

Collision coverage helps pay to repair or replace your vehicle if it's damaged in a collision with another object (like a car, tree, or fence) or if it overturns. This coverage applies regardless of fault, though your deductible will apply. If an engine failure is a direct result of a collision (e.g., the impact caused a critical component to break, leading to failure), collision coverage might be relevant, but it's about the damage from the impact, not the engine's internal failure itself.

comprehensive coverage

Comprehensive coverage, often referred to as "other than collision," helps pay for damage to your vehicle caused by events other than a collision. This includes theft, vandalism, fire, falling objects, natural disasters (like floods or hail), and hitting an animal. Engine failure due to a natural disaster (e.g., flooding causing hydro-lock) might be covered under comprehensive, but a general mechanical failure is not.

Uninsured/Underinsured Motorist Coverage

This coverage protects you if you're involved in an accident with a driver who has no insurance or insufficient insurance to cover your damages. It can cover medical expenses, lost wages, and, in some cases, damage to your vehicle, but it's not directly related to engine failure unless caused by such an accident.

Medical Payments Coverage (MedPay) and Personal Injury Protection (PIP)

These coverages help pay for medical expenses for you and your passengers, regardless of fault. PIP is broader and may also cover lost wages and other related expenses. These are focused on injuries, not vehicle damage.

Optional Coverages

Beyond these standard types, some insurers offer optional add-ons. These can include things like roadside assistance, rental car reimbursement, and, importantly for this discussion, **mechanical breakdown insurance (MBI)**. MBI is distinct from standard auto insurance and is specifically designed to cover repairs for mechanical failures, including engine issues, provided certain conditions are met.

It's crucial to remember that standard auto insurance policies (liability, collision, comprehensive) are not designed to act as warranties. They are risk-transfer mechanisms for specific, defined perils. Mechanical breakdowns, wear and tear, and age-related failures are generally considered the owner's responsibility, much like replacing worn-out tires or brake pads.

When Auto Insurance Might Cover Engine Failure

While standard auto insurance policies typically exclude mechanical breakdowns, there are specific circumstances where damage leading to or resulting from engine failure might be covered. These situations usually involve a covered peril as the direct cause of the engine issue. Understanding these exceptions is vital for drivers seeking to maximize their protection.

Damage Resulting from a Covered Accident

This is perhaps the most common scenario where engine failure could be indirectly covered. If your vehicle is involved in a collision that is covered by your collision or comprehensive insurance, and the impact directly causes damage that leads to engine failure, then the repair costs for the engine might be included in the overall claim. For example:

• A severe impact crushes the oil pan, leading to a rapid loss of oil and subsequent engine seizure.
• A collision causes a coolant hose to rupture, leading to severe overheating and engine damage.
• A vehicle rolls over, and critical engine components are damaged due to the extreme forces or impact.

In these cases, the insurance company will assess whether the engine failure was a direct and proximate cause of the covered accident. If it was, the repairs to the engine, up to the policy limits and after your deductible is met, would likely be covered. However, if the engine was already in poor condition, and the accident merely exacerbated an existing problem, coverage could be denied.

Damage from Vandalism or Theft

If your car is vandalized, and the damage includes tampering with the engine or its essential systems in a way that causes failure, comprehensive coverage would likely apply. For instance, if a thief drains the oil or cuts critical fuel lines with the intent to disable the vehicle, and this leads to engine damage, your comprehensive coverage would typically cover the repairs. Similarly, if during a theft attempt, the engine is severely damaged (e.g., hot-wiring attempts that fry electrical components), this could also fall under comprehensive coverage.

Damage from Fire

If a fire originates from a covered event (e.g., an electrical short not related to maintenance, or a fire started by an external source), and this fire damages the engine, comprehensive coverage would generally apply. However, if the fire was caused by a known mechanical defect or poor maintenance (like an oil leak igniting), coverage might be disputed.

Damage from Natural Disasters (Flood, Hail, etc.)

Comprehensive coverage extends to damage caused by natural disasters. If your vehicle is submerged in floodwaters, leading to hydro-lock (water entering the engine cylinders), this would typically be covered under comprehensive insurance. Similarly, extreme hail damage that somehow penetrates the engine compartment and causes internal damage could also be a covered event. However, the specifics of the policy and the extent of the damage will be crucial in determining coverage.

Manufacturing Defects (Limited Circumstances)

While not directly an insurance coverage, it's worth noting that if the engine failure is due to a documented manufacturing defect, you might have recourse through the manufacturer's warranty or a recall. In rare cases, if a manufacturer defect leads to a catastrophic failure that also causes damage to other parts of the vehicle, and this is deemed a covered event by the insurer (perhaps if it happened shortly after a collision that exposed the defect), there could be an interplay. However, standard auto insurance is not a substitute for a manufacturer's warranty.

Mechanical Breakdown Insurance (MBI)

This is a crucial distinction. While not part of a standard auto insurance policy, MBI is an optional add-on or a standalone policy that *does* cover mechanical failures, including engine failure. If you have purchased MBI, it will have its own set of terms, conditions, deductibles, and coverage limits. MBI is specifically designed to act like an extended warranty, covering repairs for components that fail due to normal wear and tear. Many drivers opt for MBI precisely to mitigate the high costs associated with major mechanical issues like engine failure. It's essential to check if your current policy includes MBI or if it's something you can add.

It's vital to remember that even in these covered scenarios, your policy's deductible will apply. The insurance company will also conduct a thorough investigation to determine the root cause of the failure and whether it aligns with the policy's terms and conditions. Transparency and accurate reporting of the incident are key to a successful claim.

When Auto Insurance Typically Won't Cover Engine Failure

The vast majority of engine failure incidents fall outside the scope of standard auto insurance coverage. This is because insurance policies are designed to protect against unforeseen, external events, not the natural wear and tear or consequences of vehicle ownership. Understanding these exclusions is as important as knowing what might be covered.

Normal Wear and Tear

This is the most significant reason for denial of engine failure claims. As vehicles age and accumulate mileage, their components naturally degrade. Parts wear out, seals can degrade, and internal mechanisms experience friction and stress. Engine failure due to a worn-out piston ring, a failing water pump from age, or a timing belt that snaps after its recommended service life is considered normal wear and tear and is not covered by standard auto insurance. Think of it like a tire wearing out; insurance doesn't cover replacing tires simply because they're bald.

Lack of Maintenance

Neglecting basic vehicle maintenance is a primary driver of engine failure. This includes failing to change oil and filters regularly, not topping up coolant, ignoring strange noises, or skipping scheduled maintenance. If an engine fails because it ran out of oil due to a long-overdue oil change, or it overheated because the coolant was never replenished, the insurance company will almost certainly deny the claim. They will likely investigate maintenance records to ascertain if negligence played a role.

Overheating (Unless Caused by a Covered Event)

While a flood can cause hydro-lock (covered under comprehensive), general overheating due to a faulty thermostat, a leaking radiator hose, or a worn-out fan clutch is typically a maintenance or mechanical issue. If the engine seizes due to prolonged overheating caused by these factors, it's usually not covered by insurance.

Oil Leaks and Low Oil Levels

Similar to lack of maintenance, if an engine fails because it ran low on oil due to a leak that was not addressed, the resulting damage is generally excluded. Insurance covers sudden, accidental damage, not gradual deterioration or failure due to insufficient lubrication.

Transmission Problems Leading to Engine Damage

While transmission issues are distinct from engine issues, sometimes a severe transmission failure can cause secondary damage to the engine. However, if the primary cause is a transmission breakdown, and the engine damage is a consequence, the claim might be denied if the transmission failure itself isn't covered by a specific policy add-on like MBI.

Manufacturing Defects (Outside Warranty)

As mentioned, manufacturing defects are typically handled by the manufacturer's warranty. If the warranty has expired, and the engine fails due to a defect, standard auto insurance will not cover it. It's a product defect, not an insurable peril under auto insurance.

Aftermarket Modifications

If you have significantly modified your engine (e.g., turbocharging, engine swaps) and the failure is related to the modification or improper installation, insurers are likely to deny coverage. Modifications can alter the vehicle's intended operation and introduce new risks not contemplated by standard policies.

Age and Mileage of the Vehicle

While not an explicit exclusion, the age and mileage of a vehicle are strong indicators of wear and tear. Insurers often consider older, high-mileage vehicles to be at a higher risk of mechanical failure, and claims for such failures are scrutinized closely. If the vehicle is well beyond its typical lifespan, an engine failure is more likely to be attributed to age rather than a sudden, accidental event.

In essence, insurance is for protecting against the unexpected, external forces that damage your car. An engine failing because it's simply old, worn out, or wasn't properly cared for is generally considered the owner's responsibility. This is why understanding your policy's specific exclusions and considering options like Mechanical Breakdown Insurance is so crucial.

Factors Influencing Engine Failure Coverage

Several key factors can influence whether an engine failure claim is approved or denied by an auto insurance provider. These elements are critical for both policyholders and insurers in assessing the validity of a claim. In 2025, the claims investigation process remains rigorous, with insurers looking for clear evidence to support or refute coverage.

The Direct Cause of Failure

This is the most critical factor. Was the engine failure a direct result of a covered peril (like a collision, fire, or flood), or was it due to a mechanical issue, wear and tear, or lack of maintenance? Insurers will meticulously investigate the root cause. This often involves reviewing repair shop reports, mechanic's statements, and sometimes even requiring a physical inspection of the damaged engine.

Policy Type and Specific Coverages

As discussed, standard auto insurance policies (liability, collision, comprehensive) are generally insufficient for covering engine failure. The presence of optional coverages like Mechanical Breakdown Insurance (MBI) is paramount. If you have MBI, the terms and conditions of that specific policy will dictate coverage, including deductibles, covered components, and repair limits.

Policy Exclusions and Limitations

Every insurance policy contains a section detailing exclusions – events or conditions that are not covered. These almost universally include mechanical breakdown, wear and tear, and gradual deterioration. Understanding these exclusions before an incident occurs is vital. Policy limits also play a role; even if an event is covered, the payout will be capped at the policy's limits.

Deductible Amount

If an engine failure *is* covered under a policy (e.g., due to a collision), your deductible will apply. This is the amount you pay out-of-pocket before the insurance coverage kicks in. For major engine repairs, the deductible can significantly reduce the amount the insurer pays, making it important to consider your deductible level when purchasing or renewing a policy.

Maintenance Records

Insurance companies often request maintenance records to determine if the vehicle was properly cared for. Consistent oil changes, fluid checks, and adherence to the manufacturer's recommended service schedule can support a claim by demonstrating that the failure was not due to negligence. Conversely, a lack of maintenance records can be a strong reason to deny a claim, especially if the failure is attributed to issues like lack of lubrication or overheating.

Age and Mileage of the Vehicle

While not an explicit exclusion, the age and mileage of a vehicle are significant factors. Older vehicles with high mileage are statistically more prone to mechanical failures. Insurers may view an engine failure in such a vehicle as a natural consequence of its lifespan rather than an insurable event, unless it's directly linked to a covered peril.

Location of the Incident

In some cases, the location where the vehicle experienced the failure might be relevant. For instance, if the failure occurred in a remote area where towing and repairs are exceptionally expensive, this could impact the overall claim cost. However, this is less about coverage eligibility and more about the financial scope of the claim.

Specific Circumstances of the Failure

The narrative surrounding the failure is crucial. Did the engine suddenly make a loud noise and stop? Did it start smoking? Was there a warning light on the dashboard? The more information provided, and the more it aligns with a sudden, accidental event rather than a gradual decline, the better the chances of a claim being considered. However, even a sudden failure can be attributed to wear and tear.

Ultimately, the insurer's claims adjusters and underwriters will review all available evidence to make a determination based on the policy contract. It's always advisable to review your policy documents thoroughly and contact your insurance agent or company if you have any questions about coverage for specific situations.

Strategies for Protecting Your Engine and Finances

Given that standard auto insurance rarely covers engine failure, proactive strategies are essential for protecting both your vehicle's engine and your financial well-being. These strategies involve a combination of diligent vehicle care and smart financial planning.

1. Prioritize Regular and Thorough Maintenance

This is the single most effective way to prevent engine failure. Adhere strictly to your vehicle manufacturer's recommended maintenance schedule. This includes:

• Oil Changes: Change your oil and filter at the recommended intervals (typically every 5,000-7,500 miles, or as per your owner's manual). Use the correct type and viscosity of oil.
• Coolant Checks: Ensure your coolant levels are adequate and the coolant is flushed and replaced periodically. Overheating is a leading cause of severe engine damage.
• Filter Replacements: Regularly replace air filters, fuel filters, and cabin filters. A clogged air filter can strain the engine, while a dirty fuel filter can impede fuel flow.
• Belts and Hoses: Inspect belts and hoses for signs of wear, cracks, or leaks during regular service. A broken timing belt or a burst hose can lead to catastrophic engine failure.
• Fluid Levels: Regularly check all fluid levels, including power steering fluid, brake fluid, and transmission fluid.

2. Listen to Your Vehicle

Pay attention to any unusual sounds, smells, or changes in your car's performance. A knocking sound, a persistent burning smell, strange vibrations, or a sudden loss of power could be early warning signs of a developing problem. Addressing these issues promptly can prevent them from escalating into major engine failure.

3. Address Warning Lights Immediately

Never ignore dashboard warning lights, especially the "check engine" light. While it can indicate minor issues, it can also signal serious problems. Have a qualified mechanic diagnose the issue as soon as possible.

4. Consider Mechanical Breakdown Insurance (MBI)

As highlighted, MBI is specifically designed to cover mechanical failures, including engine issues, that are not covered by standard auto insurance. It acts like an extended warranty. Research MBI policies from reputable insurers. Compare coverage, deductibles, exclusions, and costs. MBI can be a worthwhile investment, especially for newer vehicles or those with complex engines, to avoid massive repair bills.

Key aspects to consider for MBI:

• Coverage Limits: What is the maximum payout per repair or per policy term?
• Deductible: How much will you pay per repair visit?
• Covered Components: Does it specifically list engine components? Are there any exclusions within engine coverage?
• Provider Reputation: Look for insurers with good customer service and a track record of paying claims.
• Vehicle Eligibility: MBI often has age and mileage restrictions.

5. Build an Emergency Fund

Even with MBI, unexpected costs can arise, or a repair might fall outside the MBI coverage. Maintaining a dedicated emergency fund for unexpected car repairs is a prudent financial strategy. Aim to save at least $1,000-$2,000, or more, specifically for automotive emergencies.

6. Research Vehicle Reliability

When purchasing a vehicle, research its reliability ratings, particularly for engine and powertrain components. Some makes and models are known for their durability, while others have a history of more frequent mechanical issues. Resources like Consumer Reports, J.D. Power, and automotive forums can provide valuable insights.

7. Understand Your Current Policy

Regularly review your auto insurance policy documents. Understand what is and isn't covered. If you're unsure about specific scenarios, contact your insurance agent for clarification. Ensure you know your deductibles and policy limits.

8. Drive Conservatively

Aggressive driving – rapid acceleration, hard braking, and high-speed driving – puts extra strain on your engine and other components. Driving more conservatively can help extend the life of your engine and reduce the likelihood of premature failure.

By implementing these strategies, you can significantly reduce the risk of engine failure and be better prepared financially if an issue does arise, providing peace of mind on the road.

The Cost of Engine Repair in 2025

The financial implications of engine failure are substantial, and in 2025, these costs continue to be a significant concern for vehicle owners. The complexity of modern engines, coupled with the rising cost of parts and labor, means that engine repairs can quickly become one of the most expensive automotive expenses. Understanding these costs can help drivers appreciate the importance of preventative maintenance and appropriate insurance or financial planning.

Average Repair Costs

The average cost to repair or replace a car engine in 2025 typically falls within the range of $3,000 to $7,000. However, this is a broad average, and the actual cost can vary dramatically based on several factors:

• Vehicle Make and Model: Luxury vehicles, European cars, and high-performance models often have significantly higher repair costs due to specialized parts and more complex engineering. For example, a replacement engine for a high-end SUV could easily exceed $10,000.
• Type of Repair: A minor repair, such as replacing a specific component like a head gasket or a valve, might cost between $1,000 and $2,500. However, a complete engine rebuild or replacement is far more expensive.
• New vs. Used vs. Rebuilt Engine:
  • New Engine: This is the most expensive option, often costing $4,000 to $8,000 or more, plus installation.
  • Rebuilt Engine: A rebuilt engine has been disassembled, cleaned, inspected, and had worn parts replaced. It's typically less expensive than a new engine, ranging from $2,500 to $5,000, plus labor.
  • Used Engine: Sourcing a used engine from a salvage yard is usually the cheapest option, potentially costing $1,000 to $3,000, but it comes with the highest risk, as its condition and remaining lifespan are often uncertain.
• Labor Costs: Mechanic labor rates vary by region and the shop's specialization. Specialized dealerships or independent shops focusing on specific brands may charge higher hourly rates. The average labor cost for an engine repair can add $1,000 to $3,000 or more to the total bill.
• Associated Parts: Engine repairs often require replacing other related parts, such as the radiator, water pump, hoses, belts, or even the transmission, depending on the failure's cause and extent. These additional parts add to the overall cost.

Statistics on Engine Failure Costs (2025 Projections)

Based on industry trends and data from 2024, projections for 2025 indicate that the average cost of major engine repairs will likely remain high. A survey of automotive repair shops in late 2024 indicated that the average bill for a complete engine replacement (including parts and labor) for a common sedan or compact SUV was around $5,500. For trucks and larger SUVs, this figure often climbed to $6,500-$7,500. Specialty vehicles and electric vehicle (EV) powertrains, while different, also present high repair costs, though EV powertrain failures are less common than internal combustion engine failures.

The increasing complexity of engines, with advanced technologies like direct injection, turbochargers, and sophisticated electronic controls, contributes to higher repair costs. These systems are more sensitive and require specialized diagnostic tools and expertise.

Impact on Vehicle Value

A significant engine repair or replacement can also impact your vehicle's resale value. While a new or rebuilt engine can extend a car's life, the fact that it has undergone such a major repair can be a deterrent for potential buyers. The cost of the repair itself often exceeds the vehicle's market value, leading many owners to consider whether repairing is economically feasible.

This financial reality underscores why preventative maintenance is so critical. A few hundred dollars spent annually on oil changes, fluid flushes, and inspections can save thousands in potential engine repair costs down the line. For those without robust savings, the prospect of a $5,000+ repair bill can be financially devastating, making options like Mechanical Breakdown Insurance or careful budgeting essential.

Choosing the Right Auto Insurance Policy for Engine Issues

Selecting an auto insurance policy that offers some recourse for engine issues requires careful consideration beyond standard coverage. In 2025, drivers need to be strategic to ensure they are adequately protected against potentially crippling repair costs. The key is to understand that standard policies are not designed for this, and specialized options are necessary.

1. Understand Your Current Policy's Limitations

Before looking for new coverage, thoroughly review your existing auto insurance policy. Pay close attention to the "Exclusions" section. You will almost certainly find that mechanical breakdowns, wear and tear, and engine failures due to age or lack of maintenance are explicitly excluded. Confirm that your policy does not include any form of mechanical breakdown coverage.

2. Investigate Mechanical Breakdown Insurance (MBI)

This is your primary tool for covering engine failure. MBI is not typically sold by standard auto insurance companies as part of your regular policy. It's often offered by:

• Third-Party MBI Providers: Many companies specialize in offering MBI policies.
• Dealerships: Often bundled with new or certified pre-owned vehicles as an extended warranty.
• Some Insurance Companies: A few auto insurers do offer MBI as a standalone product or an add-on, but it's less common than dedicated MBI providers.

When evaluating MBI, consider the following:

• Coverage Scope: Does it cover the engine comprehensively? Are there specific engine components that are excluded?
• Vehicle Age and Mileage Limits: MBI policies usually have restrictions. For example, a vehicle might need to be less than 10 years old and have under 100,000 miles to qualify.
• Deductible: What is the cost per repair visit? Some policies offer a choice of deductibles.
• Repair Facility Choice: Can you choose any licensed repair shop, or are you restricted to specific networks?
• Contractual Terms: Read the fine print carefully. Understand what constitutes a covered breakdown versus an excluded cause (e.g., lack of maintenance).
• Cost vs. Benefit: Compare the annual premium and deductible against the potential cost of an engine repair. For a vehicle prone to issues or one you plan to keep long-term, MBI can be very cost-effective.

3. Evaluate Extended Warranties

Extended warranties are similar to MBI but are often offered by the vehicle manufacturer or dealership. They can be purchased at the time of sale or later. Extended warranties may offer broader coverage or better integration with dealership service centers, but they can also be more expensive. Ensure the warranty explicitly covers major engine components.

4. Consider the Reliability of Your Vehicle

If you drive a vehicle known for its reliability (e.g., certain Japanese makes often score high in reliability surveys), the risk of a major engine failure might be lower. In such cases, you might decide to forgo MBI and instead focus on building a robust emergency fund. Conversely, if you own a vehicle with a history of mechanical issues, MBI becomes a much more critical consideration.

5. Factor in Your Financial Situation

Can you comfortably afford a $3,000-$7,000 repair bill out of pocket if your engine fails? If the answer is no, then investing in MBI or an extended warranty is a wise financial decision. If you have substantial savings, you might choose to self-insure by setting aside funds specifically for unexpected repairs.

6. Don't Rely Solely on Collision/Comprehensive

While these coverages are essential for accident-related damage, they will not help with a standard engine breakdown. Do not assume these coverages will bail you out if your engine simply stops working due to wear and tear or a mechanical fault.

7. Seek Expert Advice

Consult with an independent insurance agent who understands various types of coverage, including MBI and extended warranties. They can help you compare options from different providers and find a policy that best suits your vehicle, driving habits, and financial goals. They can also explain the nuances of policy terms and conditions.

By taking a proactive approach and looking beyond standard auto insurance, you can build a comprehensive protection plan that addresses the significant financial risk posed by engine failure.

What to Do If Your Engine Fails

Experiencing engine failure can be a stressful and disorienting event. Knowing the immediate steps to take can help you manage the situation safely and efficiently, and lay the groundwork for dealing with repairs and potential claims. Here’s a breakdown of what to do if your engine fails, whether you're on the road or at home.

1. Ensure Your Safety Immediately

If you are driving:

• Pull Over Safely: As soon as you notice signs of engine failure (e.g., loss of power, strange noises, smoke, warning lights), try to pull over to the side of the road as safely and quickly as possible. Avoid sudden braking if possible; maintain control of the steering wheel.
• Hazard Lights: Turn on your hazard lights immediately to alert other drivers.
• Exit the Vehicle (If Safe): If you are on a busy highway or in a dangerous location, and it is safe to do so, exit the vehicle and move to a safe area away from traffic, such as behind a guardrail.
• Call for Assistance: If you have roadside assistance (through your auto insurance, a separate membership like AAA, or your MBI provider), call them first. They can arrange for a tow truck. If not, call a trusted towing service.

2. Assess the Situation and Gather Information

Once you are safe and have arranged for towing, try to recall what happened leading up to the failure. This information will be crucial for mechanics and potentially for insurance claims.

• Note Symptoms: What were the exact symptoms? (e.g., sputtering, knocking, smoke, overheating, complete shutdown).
• Warning Lights: Were any warning lights illuminated on the dashboard?
• Recent Maintenance: When was your last oil change, coolant flush, or other significant maintenance performed?
• Any Recent Repairs: Were there any recent repairs or work done on the vehicle?

3. Arrange for Towing

Your vehicle will likely need to be towed to a repair shop. You have a few options:

• Roadside Assistance Provider: This is usually the most convenient and cost-effective option if you have coverage.
• Trusted Mechanic: If you have a regular mechanic you trust, you can have the vehicle towed directly to their shop.
• Dealership: If your vehicle is under warranty or you prefer dealership service, have it towed there.

Be aware of your towing coverage limits. Some roadside assistance plans only cover a certain number of miles, and you may have to pay the difference.

4. Contact Your Insurance Company (If Applicable)

If you suspect the engine failure might be covered under your policy (e.g., due to a recent accident, fire, or flood), contact your insurance agent or claims department as soon as possible. Be prepared to provide details about the incident and the suspected cause of the failure. If you have Mechanical Breakdown Insurance (MBI), contact that provider immediately.

Important Note: If the failure is due to wear and tear or lack of maintenance, standard auto insurance will likely not cover it. Do not file a claim with your standard policy unless you are certain it was caused by a covered event, as repeated denied claims can negatively impact your premium.

5. Get a Detailed Diagnosis and Repair Estimate

Once the vehicle is at the repair shop, request a thorough diagnosis of the engine failure. Ensure the mechanic explains the root cause in clear terms. Obtain a detailed written estimate for all necessary repairs, including parts, labor, and any associated services (like towing or diagnostic fees).

• Get Multiple Estimates: For major repairs, it's often wise to get estimates from two or three different reputable repair shops.
• Understand the Estimate: Ask questions about the estimate. What parts are being replaced? Are they new, used, or rebuilt? What is the warranty on the parts and labor?

6. Decide on Repairs

Based on the diagnosis, estimate, and your vehicle's overall condition and value, you'll need to decide whether to proceed with the repairs. Consider:

• Cost of Repair: Is the repair cost significantly high compared to the vehicle's market value?
• Vehicle Age and Mileage: Is the vehicle old with high mileage? Will another major repair be likely soon?
• Warranty: If you have MBI or an extended warranty, confirm what is covered and what your out-of-pocket expense will be.
• Future Reliability: Will the repair restore the vehicle to reliable condition?

If the repair cost is prohibitive, you may consider selling the vehicle as-is or to a salvage yard, even if it means a financial loss.

7. Keep Records

Maintain all documentation related to the engine failure, including towing receipts, diagnostic reports, repair estimates, and invoices. This is crucial for any insurance claims, warranty work, or if you decide to sell the vehicle later.

By following these steps, you can navigate the difficult situation of engine failure with greater control and preparedness, minimizing stress and potential financial hardship.

In conclusion, the question "Does auto insurance cover engine failure?" generally yields a negative answer for standard policies. While direct coverage is rare, understanding the specific circumstances under which a covered peril might lead to engine damage is crucial. For comprehensive protection against the high costs of mechanical breakdowns, including engine failure, investing in Mechanical Breakdown Insurance (MBI) or a robust extended warranty is highly recommended. Coupled with diligent vehicle maintenance and a sound financial strategy, you can effectively safeguard yourself against the financial devastation of a failed engine in 2025 and beyond.