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Your car insurance will not cover for the repair or replacement costs for the engine.
For a standard hatchback, repair or replacements of engine parts like crankshaft, piston and pins, block assy cylinder and head assy cylinder etc, can cost you a hefty Rs. 1,05,000 or more. This is exclusive of the metal and plastic part costs which could be an additional Rs. 20,000. With just a comprehensive car insurance policy, you’d have to pay the entire engine repair costs and a part of metal and plastic parts.
Your insurance company settles the entire amount for engine repairs or replacement.
Remember: Most insurance companies offer this add-on cover for only cars under 5 years of age. One can’t make more than 2 claims in one policy year under this add-on cover. Also, if your engine was damaged not directly in the accident but in a subsequent event, say an oil leakage, your insurance company wouldn’t pay for the engine repairs.
Engine protect cover works best when combined with a zero-depreciation add-on to your comprehensive car insurance policy. Like this your insurance company will pay for the engine repairs as well as the cost of depreciated parts.
Disclaimer - Above mentioned prices are for a 2 years old Maruti Wagon R, 1.2 VXI AMT OPT (1197 CC) registered in Mumbai & previous policy has expired.
In short, engine protection cover in car insurance provides coverage for any damages to the car's engine or/and its parts due to incidents of water ingression, leakage of lubricant oil, damage to the hydrostatic lock, damages to the engine parts, like the gearbox, crankshaft, connecting rods, cylinder, pistons, etc.
An engine protection cover in car insurance makes you financially protected against any repair cost in the occurrence of a damaged engine and/or its parts. As such, engine damages are not covered under your standard comprehensive policy, this add-on is a must-have, especially if you stay in a flood-prone area.
The answer depends on your wheels, but a recommended rule of thumb is: until the amount of your annual premium and excess outweigh that of your car, it is still good for you to keep your comprehensive policy.