Transmission Damage to Towed Auto Barred by Mechanical Breakdown Exclusion?

The insured is towing his vehicle behind his motor home. He leaves the selector in the wrong position, therefore damaging the transmission while towing the vehicle.

Should the damage to the transmissions be excluded by the mechanical breakdown language found in the policy? 

Pennsylvania Subscriber

The mechanical breakdown or failure exclusion should not apply here.   

Mechanical breakdown is not the cause of the loss you describe; the damage to the transmission was caused by the insured's mistake of leaving the selector in the wrong position then towing the vehicle.

The exclusion is designed to exclude coverage for gradual damage to the auto that occurs under normal and expected conditions. This is not such a situation here.

 

 

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis