Car Engine Damage: Is It Covered by Insurance? Here's the Complete Explanation! 🚗💧
Have you ever experienced a situation where your car suddenly broke down, the engine was smoking, or even severely damaged without a clear cause? 😩 Many car owners immediately panic—especially if the damage involves the engine, the most expensive part of the car. Then, the big question arises:
"Can car engine damage be covered by insurance?"
Stay calm 😌 — the answer is not as simple as "yes" or "no." It all depends on the type of car insurance policy, the cause of the damage, and the applicable claim conditions. Let's discuss everything in a relaxed but complete manner below 👇
🚙 Types of Car Insurance and Their Coverage
Before we discuss the engine, you should know that there are two main types of car insurance:
1. Total Loss Only (TLO) Insurance
This type only covers major damage — for example, if your car is lost due to theft or is damaged by more than 75% of the car's value.
👉 So, if the engine damage is minor or moderate, unfortunately, TLO insurance does not cover it.
Example:
If your engine is damaged because water entered it during a flood, but the car can still be repaired, TLO will not cover the cost.
2. All Risk (Comprehensive) Insurance
Now, this is the type with broader coverage 💪
All Risk covers all types of damage, both small and large — from minor scratches to severe collisions. However, there are still exceptions!
Not all engine damage is automatically covered. The insurance company will first look at the cause of the damage.
⚙️ So, When Is Car Engine Damage Covered by Insurance?
Generally, engine damage can be covered by insurance if:
The damage occurs due to an accident guaranteed by the policy.
For example, the car hits something causing engine damage, or there is an impact that causes an oil leak and the engine to seize.
Damage due to flooding (with extended coverage).
Some insurance companies provide extended coverage for flood and storm damage 🌧️.
If you add this protection, then engine damage due to submersion can be claimed — provided you do not try to start the engine after it has been submerged.
Damage due to fire or explosion.
Insurance usually covers damage caused by accidental fire.
🚫 But Be Careful, These Cases Are Not Covered by Insurance!
Many people are disappointed because their claims are rejected, even though they feel they have an "All Risk" policy.
To ensure you don't experience the same thing, here are some common exclusions you need to know:
Engine damage due to negligence.
Examples: you know the car is submerged in water but you still start it, or you don't change the oil according to the schedule.
This is considered a human error or owner's negligence, so it will not be covered 😢
Damage due to age or natural wear and tear.
If the engine is damaged due to the age of the vehicle or worn-out components, the insurance company considers it not a sudden risk, but part of routine maintenance.
Damage due to illegal modifications or extreme use.
For example, you change the engine system without the manufacturer's permission, or often participate in illegal races 🏎️ — the claim can be immediately rejected outright.
📄 How to Submit a Car Engine Damage Claim
If you feel your car engine damage is within the scope of your policy, you can immediately file a claim.
Here are the steps:
Immediately report the incident to the insurance company (maximum 3x24 hours).
Do not delay, as claims can be rejected if reported late.
Gather supporting evidence and documents.
You usually need to prepare:
Original insurance policy
Photos of the engine damage
Letter of explanation from the workshop/garage
Personal identity documents (ID card or passport)
Vehicle ownership documents (vehicle registration document)
The insurance company will conduct a survey.
They will check the condition of the engine and ensure the cause of the damage matches the policy terms.
Wait for the claim decision.
If approved, the insurance company will cover part or all of the repair costs — depending on the insured value and the type of policy you have.
💡 Tips for Avoiding Rejection of Your Car Engine Insurance Claim
For a smooth and approved claim process, follow these tips:
Read the policy carefully. Understand exactly what is included and excluded in the coverage.
Add extended coverage. If you live in a flood-prone area, it is advisable to add flood coverage.
Do not start the engine after it has been submerged in water. This is a classic mistake that can lead to immediate claim rejection 😅
Maintain the car routinely. Make sure you change the oil, service it, and check important components regularly.
Report as soon as possible. The faster you report, the greater the chance the claim will be accepted.
📘 Simple Case Example
Imagine you live in a rain-prone area and your car is submerged in water up to half the engine height.
The next day you try to start the car, but smoke comes out from under the hood 😬
After taking it to a workshop, it turns out the engine is totally damaged because water entered the combustion chamber.
If you have All Risk insurance + flood extension, the repair costs can be covered.
But if you do not add flood extension, or still start the engine when submerged, the insurance company can reject your claim.
❓ FAQ (Frequently Asked Questions)
1. Can TLO insurance cover engine damage?
No, unless the damage reaches more than 75% of the car's value (for example, due to a major fire or severe accident).
2. If the engine is damaged due to an oil leak, can it be claimed?
Usually not, because it is considered the result of owner negligence. However, if the oil leak is caused by a guaranteed accident, it might be covered.
3. Is flood extension mandatory?
If you live in a flood-prone area, it is highly recommended to add this protection. The cost is not high, but the benefits are great.
4. What if the engine damage occurs while the car is rented to someone else?
Most insurance does not cover damage that occurs outside of personal use, unless you have a commercial policy.
5. Can all workshops be used for claims?
It depends on the insurance company. Some only accept partner workshops, but some also allow self-selected workshops.
🧭 Conclusion
So, is car engine damage covered by insurance? The answer is: it can be yes, it can be no.
It all depends on the type of insurance policy, the cause of the damage, and how you maintain the car.
If you only have TLO insurance, minor engine damage will not be covered.
But if you have All Risk insurance with flood, fire, and natural disaster extensions, you can sleep more soundly 😴 because your car engine is protected from major risks.
The main point: understand your policy, don't just sign, and don't be lazy about reading the terms and conditions. Because the right insurance can be your wallet's savior in critical times 💸💪
⚠️ Disclaimer
This article is written for general informational purposes and does not constitute official legal or financial advice.
Every insurance company has different policies, terms, and exclusions.
Be sure to read the official policy documents and consult directly with the insurance company before making a decision.
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