Gap insurance typically does not cover a blown engine. Gap insurance is designed to cover the difference between the amount you owe on your car loan and the car’s actual cash value if your vehicle is totaled or stolen. It does not extend to repairs or mechanical issues, such as a blown engine. For coverage related to engine failure or other mechanical problems, you would need a separate type of insurance or warranty, such as a mechanical breakdown insurance or an extended vehicle warranty. It’s important to review your specific insurance policy and warranty options to ensure you have adequate coverage for potential engine issues.