Engine failure is one of the most frustrating mechanical issues you can experience as a car owner. Depending on the particular issue, it can be costly to repair, especially if the whole engine needs replacing. You will want to guard your finances by insuring, but does gap insurance cover your car engine failure? It is a typical question that runs through a car owner’s mind. Below we explore if gap insurance covers insurance in Toronto, Ontario.
How can you tell if your engine is blown?
Your car will show you signs that there’s an engine issue or mechanical failure. When you start noticing increased smoke from the exhaust pipe, and small metal in the oil, your car has an engine issue. To prevent the engine issue from escalating, you need to stop driving the vehicle and have it checked by a professional mechanic.
How does insurance deal with an engine issue?
A standard auto insurance policy does not cover mechanical failure even if you acquire full coverage. Car insurance coverage comprises four basic policies which will reimburse you in instances you get in a car accident or your vehicle gets damaged. However, it would help if you were aware that none of these policies would cover engine failure. These four insurance policies include:
- Collision: This policy covers your damages when you are involved in an accident.
- Comprehensive: under this policy, claims that have not been covered in the collision policy will be taken care of. For instance, if you have broken windows or smashed lights or your car gets stolen.
- Liability cover: this policy covers the second party’s injuries or damage caused by you. If it is your fault, liability coverage helps protect your personal finances.
- Uninsured motorist: this policy will cover your vehicle damage when you are involved in a collision with a driver who is at fault and does not have insurance coverage.
Will Gap’s insurance policy cover engine damage?
Gap insurance coverage will never cover your car’s engine issues. Gap insurance is an alternative cover that can be incorporated into your car insurance policy. When you have a gap cover, it will help you settle the difference between the carrying value of your car when not repairable and the sum you are still in arrears to it. Moreover, the gap coverage is highly recommended to drivers who rent out their vehicles and worry about being in arrears on the loan they took to buy the car when it is rendered unfixable, too costly to fix, or “totaled”, after an accident.
Pros and cons of gap insurance policy
If you have a car and do not have any car loans payment, you should not purchase gap insurance for any mechanical issue. However, in some cases, it will help save your finances.
Some of the pros and cons of gap insurance are:
Gap insurance will guard you when you still have a car loan. If you constantly drive your vehicle, which covers many miles, your car’s value will decrease quickly, and the gap between the loan and car value can become enormous.
Gap insurance does not have a standard cost like regular insurance covers; hence you will have to incur extra charges.
Is there a policy that covers engine failure?
In some circumstances, you can get a policy to guard your money when your car has an engine or mechanical issues needing repair. Most of the time, the warranty covers engine issues. However, it would help to have mechanical breakdown insurance, assuming that your insurance company provides it.
If you buy a brand new car, or a vehicle that has low mileage, there is a high possibility you will be offered or given a warranty. However, you need to be aware of two types of security.
- Bumper-to-bumper warranty: This warranty coverage does not include bumpers or your entire car, only certain parts. Under this coverage, your car parts, including mechanical failure and engine issues, will be paid for. In addition, suppose there is no exclusion of systems or components in the warranty; then a bumper-to-bumper warranty would cover it.
- Power train warranty: This warranty is precise to the engine, driving axles, and transmission that makes your car move. Moreover, unlike bumper to bumper warranty, the power train warranty only covers what is in its catalog.
Note: both warranties can often be extended beyond the manufacturer’s expiration date if you are willing to pay the extra charges. These charges are usually determined by the age or mileage of your car. For instance, a four-year/40,000-mile warranty will run out when the vehicle is four years old or reaches 40,000 miles driven.
Mechanical breakdown insurance
Mechanical breakdown insurance is an extra coverage given by some automobile insurance companies. This cover is a substitute for a prolonged warranty and may have more comprehensive coverage than what an extended warranty gives. In addition, this insurance guarantees your engine will be covered. However, ordinary wear and tear or maintenance on parts such as brakes are not covered. You need to be aware this policy is limited to an exact period, similar to a warranty.
Furthermore, most automobile companies do not provide this cover; you will need to research and find one. The average amount of a vehicle cover, including mechanical breakdown insurance, varies by carrier and may possess contrasting limitations to other agencies.
Looking for a Car and Truck Rental in Toronto, Ontario? Contact us today
Almost every car owner will experience an engine issue at some point. Engine replacement may cost you lots of dollars and considerable time, so you must guard yourself and your finances the best way you can. In case of a crash, gap insurance pays for the difference between the car’s value and what you still owe. However, you need to be aware that gap insurance does not cover your rental or personal car’s engine failure.
At City Car & Truck Rental, we provide diverse car brands to cater to your business or pleasure. Our rate is the best guaranteed in the GTA area with top-quality customer support because we value every customer and strive to be the best in the car rental business. Call 416-800-1222 today to get a great and economical car rental.