Will Car Insurance Cover a Blown Engine?

Last Updated on February 5, 2026

A blown engine can feel like the exact kind of “disaster” car insurance should cover—until the estimate comes back at thousands of dollars. The tricky part is that insurance usually pays for sudden, accidental damage (crashes, theft, storms), while most engine failures are treated as mechanical breakdown or wear and tear.

Below is the clear answer on when car insurance will cover engine damage, when it won’t, and what coverage options (like warranties and mechanical breakdown insurance) are designed for expensive repairs.

Standard auto insurance usually won’t cover a blown engine because it’s treated as mechanical breakdown or normal wear and tear.
Your policy may cover engine damage if it was caused by a covered event—like a crash (collision) or flood/fire/falling object (comprehensive).
Even with “full coverage,” a major engine claim can still be denied if the failure traces back to neglect, low oil, overheating, or gradual deterioration.
For non-accident engine failure, your best options are a powertrain warranty, an extended warranty, or mechanical breakdown insurance (MBI) if your car qualifies.

Table Of Contents

Quick Answer: Usually No—Unless a Covered Event Caused the Engine Damage
Why Standard Auto Insurance Doesn’t Pay for Mechanical Failure
What Your Policy Covers (And Where a Blown Engine Fits)
When Car Insurance Might Cover Engine Damage
If You Think Your Engine Failure Is Claim-Related, Do This Next
What Covers a Blown Engine Instead? Warranties and Mechanical Breakdown Insurance
FAQs on Car Insurance and Blown Engines
Final Word: Will Car Insurance Cover a Blown Engine?

Quick Answer: Usually No—Unless a Covered Event Caused the Engine Damage

Car insurance typically does not cover a blown engine if it happened from age, overheating, low oil, neglected maintenance, or internal failure. Those problems fall under normal wear and tear and mechanical breakdown.

However, your policy may help if the engine damage was the direct result of a covered claim—like a crash, a flood, or a fire. The key is what caused the damage, not just what broke.

Why Standard Auto Insurance Doesn’t Pay for Mechanical Failure

Even if you have more than minimum coverage auto insurance, most policies are not designed to pay for routine mechanical problems. That includes major issues like a blown engine, seized engine, or failed transmission—and smaller issues like an engine misfire.

Insurers price policies around unexpected losses—like many of the most common car insurance claims—not the inevitable reality that every vehicle will eventually need repairs.

What Your Policy Covers (And Where a Blown Engine Fits)

Most drivers carry some combination of these coverages:

Liability coverage: Liability insurance pays for injuries and damage you cause to others. If you’re responsible for an at-fault accident, liability can pay the other driver’s repairs and injuries, plus certain costs like medical payments coverage (if you carry it). Liability does not pay to repair your own engine.

Collision coverage: Collision coverage can pay to repair your car if you hit another vehicle or object. If the crash cracks the engine block, damages the oil pan, or causes overheating that ruins the motor, collision is the coverage that may apply.

Comprehensive coverage: Comprehensive coverage can pay for non-crash events like theft, fire, falling objects, and many weather losses. It’s why comprehensive can help with things like hail damage and even certain glass losses (depending on your state and policy) like windshield replacement.

These coverages are usually bundled when people talk about full coverage auto insurance. Even then, mechanical breakdown by itself is not covered.

When Car Insurance Might Cover Engine Damage

Insurance can help when the engine damage is tied to a covered claim event. Common examples include:

Accident-related engine damage: A collision causes direct damage to the engine, cooling system, or oil system and the engine fails as a result.
Falling objects or tree damage: A heavy impact to the hood (like a fallen tree branch) can damage components and lead to engine failure.
Flood/water damage: Water intrusion can destroy an engine (hydrolock). Comprehensive may apply if flooding is a covered peril on your policy.
Fire, vandalism, or theft-related damage: If a covered comprehensive claim results in engine damage, the engine repair/replacement may be part of that claim.

What usually doesn’t qualify: engine failure from low oil, sludge, overheating caused by a neglected leak, old age, manufacturer defect outside warranty, or gradual deterioration. Those are treated as maintenance/mechanical problems—not insurable events.

If You Think Your Engine Failure Is Claim-Related, Do This Next

Stop driving immediately. Continuing to drive can turn a small issue into total engine failure—and can complicate coverage if additional damage is avoidable.
Document what happened. Take photos/video of the scene (flood line, fallen branch, collision damage), warning lights, and any leaking fluids.
Get the car towed to a reputable shop. Ask for a written diagnosis that explains the likely cause (impact damage, water intrusion, etc.).
File the claim under the right coverage. Collision for crash damage; comprehensive for non-crash events. Expect your deductible to apply.
Be prepared for a “total loss” decision. If the engine replacement cost is close to (or exceeds) the vehicle’s value, insurers often total the car instead of repairing it.

What Covers a Blown Engine Instead? Warranties and Mechanical Breakdown Insurance

If the engine failed from internal breakdown—not a covered accident or peril—your best shot is usually warranty coverage or an optional add-on called mechanical breakdown insurance.

1) Manufacturer or extended warranty

Many newer vehicles have a powertrain warranty that covers major components like the engine and transmission for a set number of years/miles. If your engine failure is due to a covered defect (and you followed maintenance requirements), the warranty may pay for repairs.

2) Mechanical Breakdown Insurance (MBI)

Mechanical breakdown insurance (MBI) is optional coverage sold by some insurers that works more like a repair plan than accident insurance. It can help pay for expensive failures—like the engine, transmission, and other major systems—when the breakdown isn’t caused by a crash.

MBI can cover certain internal engine repairs and parts (including components like piston-related damage), but it won’t pay for routine maintenance, wear items, or problems caused by neglect. For a deeper look at what’s excluded and how claims work, see this guide on mechanical repairs and car insurance.

Two big catches:

MBI is usually limited to newer vehicles with relatively low mileage.
Not every insurer offers it, and eligibility rules vary.

Also, watch for overlap. It’s easy to be over-insured if your vehicle is already protected by a strong factory powertrain warranty (or a solid extended warranty).

FAQs on Car Insurance and Blown Engines

Does car insurance cover a blown engine from overheating or low oil?

Usually not. Overheating and low-oil damage are typically considered maintenance-related or wear-and-tear issues, which standard auto insurance excludes. Coverage is more likely only if the overheating was directly caused by a covered event (for example, a collision that damaged the radiator).

Will comprehensive insurance cover engine damage from flooding?

Often, yes—if you had comprehensive coverage in force before the flood and the insurer determines flood/water damage is the cause of the engine failure (such as hydrolock). Your deductible will apply, and the vehicle may be totaled if repairs exceed its value.

If my engine was damaged in an accident, is it covered under collision?

It can be. If the engine damage is tied to a crash (direct impact, oil pan damage, cooling system damage leading to failure), collision coverage may pay for repairs up to the vehicle’s actual cash value, minus your deductible.

What’s the difference between a warranty and mechanical breakdown insurance (MBI)?

A warranty (factory or extended) is a service contract that covers certain repairs for defects or covered failures during a set time/mileage period. Mechanical breakdown insurance is an insurance add-on offered by some insurers that can cover non-accident mechanical failures on eligible vehicles, usually with a deductible and specific exclusions.

Can an insurer deny an engine claim if I kept driving after warning lights came on?

Possibly. If driving further caused additional avoidable damage, the insurer may dispute part of the loss. If you suspect engine trouble after a covered event, stop driving, document the situation, and tow the vehicle to a shop for diagnosis.

Will the insurer replace my engine or total the car?

It depends on the numbers. If the repair/replacement cost is close to or higher than the vehicle’s value, the insurer may declare a total loss and pay the actual cash value (minus your deductible) instead of installing a new engine.

Is mechanical breakdown insurance worth it?

MBI can be worth it if (1) your vehicle qualifies, (2) you plan to keep it beyond the factory warranty, and (3) you want predictable costs instead of a surprise repair bill. It’s usually less attractive if you already have strong powertrain warranty coverage or you’re comfortable self-funding repairs with an emergency fund.

Final Word: Will Car Insurance Cover a Blown Engine?

Most blown engines are not covered by ordinary car insurance because they’re treated as mechanical breakdown or wear and tear. The main exception is when engine damage is clearly caused by a covered claim event—like a collision, flood, fire, vandalism, or falling object.

If you want protection from non-accident engine failure, look to warranty coverage or mechanical breakdown insurance. Those are the products designed for expensive “something inside the engine failed” repair bills.

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