Do I Need Engine Protection Cover on Car Insurance?

By- Rifat SF

Vehicles are a big investment, especially cars. The reason what makes cars so important is that like houses, they are a necessity. We use them every day for our commute. So it is natural to protect this investment with the proper insurance coverage. But even with the best auto insurance policies, there’s a limit to what you can protect. Some parts of the car, such as the engine, are prone to breakdown. This breakdown can cause your breakdown because they cost a ton! To save yourself from this dilemma, there’s something called Engine Protection Cover.

Before we get into details about engine protection cover, let’s take a look at the different vehicle insurance policies available in the US. There are three major types of auto insurance:

• Liability Insurance

• Collision Insurance

• Comprehensive Insurance
  

Liability Insurance covers the damage done by your car to another’s car or property in an accident. This insurance will not cover your damages and is mandatory in every state except two.

Collision Insurance is exactly like Liability Insurance (even in cost) and it covers the damages to your car in an accident. If you hit someone’s car or hit a tree, the damages will be covered by collision insurance.

Comprehensive Insurance is like a natural calamity and accident protection coverage. It covers all the damages that happen from accidents that are not your fault. It includes hurricanes, hailstorms, a tree falling on your car, riot, etc.

But what happens when there’s some accidental damage to the engine of your car? The cost of fixing a broken engine is very high, after all, it is one of the most important parts of the car. This is where Engine Protection Coverage comes in.

What is Engine Protection Coverage?

Engine Protection Coverage is an add-on to the existing car insurance policy that adds protection to the car’s engine. This coverage usually covers the labor charges, even the cost of materials in some cases. Not just the engine, but it also covers the gearbox, crankshaft, and other peripheral parts. While the damage that is covered in this add-on might differ from insurer to insurer, it generally stays the same.

What Does it Cover?

Engine Protection coverage covers specific engine damages which might result in a total breakdown of your car. The most common use of this add-on are:

• Water Ingression Damage: In some cases, water can leak inside the engine and cause damage to the parts. This plan covers it so that you don’t have to pay for the expensive repairs.

• Hydrostatic Lock: The most common of all is the hydraulic lock. Sometimes, when your engine is wet, attempting to start the car can result in engine damage. This alone makes getting engine protection coverage worth it.

• Lubricant Leakage: Lubricant leakage is not that common, but can be a headache if it occurs. Not only does it affect your engine but other parts of the car too.

• Engine Parts: EP also covers the repair or replacement of different parts of the engine such as gearbox, crankshaft, pistons, spark plugs, etc.

Many companies also offer compensation for the cost of repair and consumables such as engine oil, lubricants, coolants, spares, etc. Some companies do, and some don’t. So it is better to ask them before getting one.

While this add-on does bring a lot of protection to your engine, it is to be noted that there are some conditions associated with it. It is an “accident” protection plan, not a “mistake” protection coverage. It means that the coverage will be valid if the damage was accidental. If you try to start a car when you know it is flooded or waterlogged, this coverage will be void.

It also does not cover damage due to wear and tear, excessive engine heating, stress, physical damage, etc. The terms and conditions might be different for each insurer. These limitations will make you ask a question; Is engine protection coverage worth it?

Is it Worth It?

Saving yourself from a messy engine failure sounds like a very smart thing to do. While getting this coverage makes sense, considering all the benefits it comes with, there are some conditions to check before getting it.

The first is the added premium price. Already paying the premium for three types of coverage can be a difficult thing, even if you get your insurance from the cheapest car insurance company. Adding the cost of the engine protection might not be a great idea if you can’t pay extra.

The other thing to note is most of the damage covered by this coverage is due to water. So if you live in a state where rain rarely sees the light of the day, you can skip it. On the other hand, if you live in Hawaii, Louisiana, Alabama, etc, then getting this coverage will be worth it.

Another factor to consider is the age of the car. A new car with a great engine that is already under some form of warranty does not require engine protection coverage. It can get damaged due to waterlogging or any other reason, but the chances of that happening are rare. So the general rule of thumb is if the car is under five years old, and there’s rarely any waterlogging or flooding in the area it is operated, then engine protection coverage is not worth it.

If the car is older than five years and there have been some engine failures before (making it more susceptible to damage), then getting engine protection coverage would be a smart choice. But as always, get a proper idea of the coverage from the insurer before buying any car insurance policy or add-on.