Does standard car insurance cover engine damage? Here’s what you need to know

Let us start by understanding engine damage.

What counts as engine damage? It usually refers to the malfunction or breakdown of the core engine components. This may include - oil leakage, overheating, water entering the engine, and a cracked engine block.

Common causes of engine damage include

• Lack of maintenance
• Floodwater ingestion
• Accident or collision
• Coolant failure (leading to overheating)

Standard car insurance & engine damage

The truth is that standard car insurance policies mostly do not cover engine damage, at least not in all situations, and sometimes need specific mention. Knowing this can help you make confident decisions about additional coverage options.

Engine damage is often expensive and is attributed by the provider to negligence, wear & tear, and mechanical failure. Therefore, it is commonly excluded unless specified.

Also Read: Essential rights and duties every car insurance policyholder in the Philippines should know

Car insurance coverage that covers engine damage

If you are a car owner, you know that CTPL insurance is a must; it cannot be ignored, as it is mandatory by law and required for car registration. As for coverage, it offers protection against third-party injuries or death. So, no engine protection.

Next up is comprehensive insurance. It is optional and highly recommended for the wide range of protection it offers. In this case, it covers engine damage caused by an accident or collision.

Add-ons are extra coverages you can include in your policy based on your driving requirements. They give your insurance policy a more customised feel. For instance, Acts of God (AOG)/Acts of Nature (AON) coverage covers damage to the vehicle (including the engine) caused directly by natural disasters such as a flood or typhoon.

If you are concerned about engine protection, discuss it with your insurer. They might help you find plans that fit your driving style and give you peace of mind about your coverage choices.

Also Read: How to claim CTPL Insurance? Here’s what you need to know

When is engine damage covered & when it is not

Let us first discuss when it is covered -

• Accident & collision: If the engine gets damaged due to an accident, your insurance policy will take care of the repair, given that the coverage is part of your plan.
• Natural disaster: Flooding is a major concern for car owners. If your car gets submerged and you have specific coverage (AON), engine repairs may be covered.

When it is not covered

• Wear & tear: Car insurance does not cover damage caused by age or use. Insurance is not meant for maintenance issues.
• Negligence: Any damage that is caused due to the driver’s negligence is not covered by insurance. This can include skipping service, ignoring oil change or dashboard warning lights, and driving through deep water.

Also Read: How regular car maintenance can protect your insurance claims: Let’s find out!

Flood damage & engine protection

Floods, heavy rains, and waterlogging are common in the Philippines. Therefore, for car owners, it is essential to protect their cars from such dangers, as water can harm the engine in the most damaging way. So, what to do? Simple, get Acts of Nature (AON) coverage.

Important AON coverage

Given the frequency of typhoons, this coverage is super essential. With it, your vehicle and its components (including the engine) are protected from storm damage, floods, and landslides.

Real-life scenario
Imagine you are driving through the flooded streets of Manila when water enters the engine bay, causing damage. Without AON coverage, you’ll end up shouldering the costly repair.

Also Read: Car Flooding 101: What to do and when insurance will cover the damage

Engine protection coverage: Cost?

One of the most commonly asked questions around engine protection coverage is ‘how much does it cost?’ and ‘Is it worth it?’ Let us start by answering the first question -

With so many providers, the cost of engine protection coverage may vary. For a general perspective, it costs approximately 10 to 30% of your base premium.

Moving on to the next answer. Yes, engine protection coverage is absolutely worth it, especially if you live in or frequently travel to a flood-prone area.

Also Read: Common myths around total loss car insurance & the truth behind them

How to secure your engine beyond insurance

Keeping your car’s engine in good condition through regular maintenance and smart driving habits helps protect your vehicle beyond insurance, empowering you to own your safety.

• Smart driving habits: This includes avoiding driving to areas with flood alerts or water-clogging issues, not ignoring dashboard warnings, and warming the mill before driving.
• Maintenance tips: This includes regular oil changes, inspection of engine components, coolant level checks, and adherence to the service schedule.

Also Read: Top 7 benefits of zero-depreciation car insurance for car owners

Tips to choose the right car insurance coverage

Tip #1. Look for essential attributes like good customer support, 24*7 helpline support, and quick claim processing

Tip #2: In addition to CTPL, choose comprehensive coverage and other add-ons based on your driving needs, like Acts of Nature and engine protection

Tip #3. Read the policy fine print thoroughly and when in doubt, ask questions. Make sure to get clarity on the policy exclusions, limits, and inclusion of flood & engine damage.

Also Read: Is loss of use coverage worth adding to your car insurance policy? Let’s evaluate

Bottom line

Okay, start by asking yourself: how well do you know your car insurance policy? Does it offer engine protection? From our experience, most car owners won’t have a definite answer, with most of you in doubt about the inclusion, and that’s where the trouble lies. We have said numerous times, and are saying it again, ‘do read your policy fine print.

Coming back to engine coverage, most standard policies do not fully protect your car’s engine, unless a specific insured event causes the damage. Thus making add-ons like Acts of Nature & engine protection coverage essential for Filipino car owners.

Remember, a good & secure insurance cover is like a safety net that works best when paired with responsible driving & ownership. Here are a few pointers - stay informed, choose your coverage wisely, and invest in maintenance.

Also Read: 10 car upgrades that look great, but could increase your premium