Is Car Insurance Covered for Mechanical Problems?

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Dealing with engine problems and other mechanical troubles that can afflict your cherished automobile can be daunting. Furthermore, mechanical problems can be costly to fix and rectify. Car insurance covers the expense of unintentional damages and losses such as fire and other dangers, vandalism, and so on. However, not all automobile insurance policies cover mechanical issues. However, if you have the proper car insurance in the UAE, your insurer may cover the cost of mechanical repairs.

You may receive insurance benefits with comprehensive automobile insurance depending on the policy, but having third-party liability insurance will not provide you with any financial aid in the event of engine failure. Read on to find out if your auto insurance covers mechanical breakdowns and if you can add-on riders to protect your vehicle from mechanical troubles.

How Does Car Insurance Cover Engine Failure?

Most automobile insurance policies in the UAE do not cover repair costs if your car engine blows. However, any engine failure caused by circumstances covered by your policy may be covered by insurance. Automobile insurance covers the expense of repairs in the event of an accident, fire, vandalism, or other threats, even if your car is totaled. However, no insurance policy specifically covers the repair or replacement cost of engine failure.

Following are some coverages along with inclusions.

  • Collision Coverage: As the name suggests, collision insurance pays for the repair expenses if your car involves in an accident. The insurer may provide cashless claims for agency repair or within its network of garages. Damages to the engine and car body due to accidents are covered under this plan. Collision insurance is an integral part of comprehensive insurance.
  • Comprehensive Coverage: A comprehensive car insurance covers the repair expenses for almost any kind of damages to the vehicle including property and bodily damages to uninsured parties. The comprehensive car policy pays for losses such as theft, vandalism, third party malicious acts, crashing animals, and losses due to natural calamities.
  • Third-Party Liability Coverage: Third-party liability coverage is the most basic car insurance plan and mandatory coverage under the UAE Federal Laws. The plan ensures the safety of uninsured individuals who are not part of the insurance plan. Any damages cause to a third party due to the insured vehicle, the insurance company compensate for the damages as per the policy terms and conditions.

Is there any Car Insurance that Covers Engine Failure?

In some situations, your insurance may pay for mechanical failure and engine problems that necessitate repairs. If you bought a new vehicle, engine breakdowns are usually covered by the warranty. Otherwise, if your insurer offers it, you may want to consider purchasing engine failure coverage, generally known as mechanical breakdown insurance (MBI).

Warranty Coverage

As a new automobile owner, you are entitled to a warranty period for a certain number of miles or time period. Even if you purchase a used automobile during the warranty period, the firm will cover the repair and replacement costs. The warranty for an automobile in the UAE is divided into two types, which are described below.

  • Bumper-to-Bumper Warranty: Through bumper to bumper warranty, the company provides coverage for almost every car part during the warranty period. Although the bumper themselves are not covered under the warranty in case of accidental damages. But, the engine and mechanical breakdowns are covered within the warranty. Until and unless specified, most vehicle parts are covered under the bumper to bumper warranty.
  • Powertrain Warranty: Power train includes the engine, transmission system and other vital parts employed in making the vehicle move. As the name suggests, the power train warranty secures your car’s engine, transmission system and driving axel. Other parts excluding the power train are not covered under the warranty unlike the bumper to bumper warranty.

Manufacturers provide car owners the option to extend the warranty beyond what is already provided at an additional expense. The automotive warranty is often dependent on the vehicle’s mileage or a certain length of time. For example, a car with a warranty duration of three years and 50,000 kilometers means that the firm will cover failure expenditures for a maximum of three years or 50,000 kilometers, whichever comes first. You can also extend the warranty for another period of time by paying an additional fee, depending on the company.

Mechanical Breakdown Insurance (MBI)

Mechanical breakdown insurance is available as an optional policy from a number of car insurance companies. MBI, as an alternative to extended warranty, provides broader coverage than extended car warranties. Almost all engine and mechanical breakdowns are covered by a mechanical breakdown insurance coverage. Failure due to normal wear and tear, on the other hand, is not covered by MBI. Mechanical breakdown insurance, like automotive warranties, secures the vehicle for a set length of time.

However, most automobile insurance firms in the UAE do not provide MIB, therefore you may need to look into the insurance market online if you want to purchase such a protection plan. Mechanical breakdown insurance costs vary depending on a variety of criteria, including the year of manufacture, type, and value of your vehicle. Although you may be able to obtain car insurance for mechanical breakdown, depending on your insurance company, there may be certain restrictions.

Differences Between Extended Warranty and Mechanical Breakdown Insurance

If you buy a new car, the manufacturer will provide you with a warranty as part of its expanded services. The warranty is essentially an assurance from the company that it would repair engine and mechanical part operational faults. In contrast, if you buy a used automobile with an active insurance period, you will receive a transferable warranty from the previous owner that would cover mechanical failure in the same manner that a new car would. You can also extend your warranty by paying a warranty extension fee to the manufacturer or a third-party warranty provider. There are various warranty providers in the UAE where you can shop for extended warranties based on your requirements and time frame.

Mechanical breakdown insurance, on the other hand, is a coverage that covers repair costs as well as other necessary replacements. However, if you still have an active car warranty, you should not choose MBI because it would duplicate your security coverage. The majority of the time, when a vehicle qualifies for mechanical breakdown insurance, it is still under warranty.

Almost every car manufacturer covers mechanical failures with engine guarantees, while the remainder of the car’s body is protected by bumber to bumber warranties.

Furthermore, the powertrain warranty protects your engine and transmission for a longer period of time than the bumper to bumper guarantee and assists you in repairing difficulties such as axel and gear failures, transmission, emission control system, transfer case, engine, and drive system.

Extended Warranty and Mechanical Breakdown Insurance – Which one to Choose?

Both extended warranties and mechanical breakdown insurance offer a number of benefits. However, if you are unsure which one to choose, consider the features and benefits of extended warranty and mechanical breakdown insurance. In general, mechanical breakdown insurance and extended warranty are comparable; however, the MIB is less expensive, more flexible, and has larger coverage due to the chain of repair centers. However, extended warranties are widely available for a wide range of automobiles and car models.

You can choose a security plan based on your needs, available alternatives, and, most crucially, the cost of the protection plan.

Does Gap Insurance Covers Mechanical Breakdowns?

Specifically, gap insurance does not cover technical breakdowns such as engine seizure or transmission failure. It is an optional coverage that can be added to your car insurance policy. The insurer secures the difference amount that you owe to the bank after reserving a car with this insurance.

You can claim the difference amount if there are mechanical breakdowns or other losses. However, Gap insurance will not cover the expense of mechanical breakdown on its own.


The majority of comprehensive auto insurance policies protect your vehicle against a number of risks. They do not, however, cover engine failure or mechanical problems. To protect your vehicle from engine breakdowns, you can get mechanical breakdown insurance (MBI). You can select an extended warranty for engine and transmission security, among other alternatives. Both MBI and extended warranty give similar benefits; however, you must choose the most cost-effective plan based on your needs. You must pay the cost of an extended warranty up front, whereas MBI allows you to pay the insurance cost in installments.

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