Will Your Car Insurance Cover Engine Failure?

Engine failures can be expensive, and many car owners wonder if their car insurance will cover the repair cost. Whether your insurer will approve or reject your engine damage claim depends on the cause of the failure. While some engine-related losses may be covered, others are considered maintenance issues and are excluded from standard car insurance policies.Read more

What Types of Engine Failure Does Car Insurance Cover?

Your car insurance policy may provide coverage for engine failures caused by the following factors:

Most car insurance companies only cover sudden and accidental damage to the insured car's engine. If the engine stops working because of any neglect, ageing, or internal mechanical failure, you need to bear the repair cost.

Does Car Insurance Cover Mechanical Failures?

No, standard car insurance policies do not include coverage for mechanical failures caused to the insured car's engine. Either they must be covered under the manufacturer's warranty, or you need to pay for the repairs from your pocket. Here are some examples of mechanical failures that are excluded from a motor insurance policy:

• Timing chain failure
• Fuel pump failure
• Clutch wear
• Engine overheating due to maintenance issues
• Internal component breakdowns

Common Causes of Car Engine Failure in India

Engine failure can not only be frustrating but its repairs can also cost us heavily. Therefore, for early detection, it becomes essential to know why your car's engine can fail. Here are a few common reasons that can cause your car's engine to stop working:

1. Low Level of Engine Oil - If there is not sufficient lubrication oil in a car engine, it will lead to wear and tear over time resulting in engine failure. Thus, low levels of engine oil can cause your engine to fail.
2. Engine Overheating - Overheating your engine can also cause it to fail. If your car's cooling system has been damaged, or the head gasket has blown, your car may start overheating, thus, increasing the chances of engine failure.
3. Water Ingression - Water ingression is another common reason for car engine failure, especially in areas with heavy rainfall. If the water flows through the inlet manifold of your car, it can cause severe damage to the car's engine.

Some other common reasons behind engine failure include combustion in the engine, ignoring the engine oil light, and wrong fuelling.

When Can You Claim Car Insurance for Engine Failure?

You may be able to raise a car insurance claim for engine failure if the damage is caused by:

• A road accident
• Flooding or waterlogging
• Fire
• Cyclones, storms, landslides, or other covered natural disasters

For example, your car's engine gets damaged in a road accident and the estimated repair bill comes around Rs 1.5 Lakh. In this case, you can file a claim under your comprehensive car insurance policy and the payout will be as per your policy inclusions and exclusions. However, in case of severe damage where the engine cannot be repaired, the insurer may be able to provide an engine replacement, subject to terms and the applicable deductibles & depreciation.

Does Car Insurance Cover Oil Leaks?

Oil leakage is one of the most common causes of engine failure. If your car's oil leaks, it can rapidly deteriorate the engine, thus causing engine failure. Moreover, an engine oil leak can also be dangerous, as it may lead to losing control of your car while driving.

If your car has suffered oil leakage and caused damage to your car's engine due to an unforeseen incident such as theft, accident or natural disaster, your car insurance policy will cover it. However, if the oil leak is not due to an accident, your car policy will not cover any such loss.

However, if you want to cover any loss or damage to your car's engine, you can opt for the Engine Protection add-on cover.

Is Engine Seizure Covered Under Car Insurance?

Engine seizure may be covered only if it happens as a result of a covered event in your car insurance policy.

For example, if floodwater enters the engine and causes hydrostatic lock, the damage could be covered depending on your insurer's terms and whether you have an engine protect add-on. However, insurers generally reject engine-seized insurance claims when the damage is due to:

• Low engine oil levels
• Overheating caused by poor maintenance
• Negligence
• Wear & tear

Note: Always inform the insurer immediately after an engine seizure and avoid attempting repairs before inspection.

What is Engine Protection Cover in Car Insurance?

An Engine Protect cover is an add-on in car insurance that covers loss or damage to your car's engine even if it's not resulting from an accident. It covers the cost incurred in repairing or replacing a car's engine and its parts. For example, due to heavy rains in your city, there has been waterlogging in your area, due to which, your car gets submerged in water and causes damage to your engine. In such a situation, the engine protection add-on will cover the cost of repairing the damages sustained by your car's engine due to waterlogging. So, if you reside in areas prone to heavy rainfall, flooding, and waterlogging, consider purchasing this add-on along with a comprehensive car insurance policy by paying an extra premium amount. Depending on the insurer, it will cover:

• Water ingression into the engine
• Hydrostatic lock damage
• Damage caused by lubricating oil leakage after an accident
• Engine damage caused by waterlogging
• Certain gearbox or differential damages

You May Also Read - Benefits of Buying Engine Protection Cover

Wrapping Up!

A standard motor insurance policy does not cover every type of failure to a car's engine. It is generally available only when the damage results from an event covered in your car insurance. These events include road accidents, flooding, fire, or natural calamities. Any engine failure caused by wear & tear, poor maintenance, or mechanical breakdowns is usually excluded from car insurance coverage. It is important to understand these differences so you can avoid claim rejections and choose the right coverage for your car.