Our insured drove his car out onto a frozen lake and the vehicle fell through the ice. Would this be considered a collision loss or a comprehensive loss?

Also, the state Department of Natural Resources is requiring the insured to remove the car from the lake because the car is leaking oil into the water. Would there be coverage for a pollution liability claim against the insured and would this coverage pay for the removal of the vehicle?

Wisconsin Subscriber

There are court decisions that say damage by water can be a collision loss, but these cases usually have a car running into water or being swept away by water. In this scenario, the car was on the ice and then fell through and was submerged. This does not seem to be the auto impacting or colliding with the water. We would consider this to be an other than collision loss.

As for the pollution question, there is no exclusion on the standard PAP that would prevent coverage. The damage to the water was caused by an auto accident and if the insured is found legally responsible for the damage, the PAP will respond to the claim. The liability coverage would include the removal of the car because the car is the source of the pollution damage, and the only way to remove the source of the property damage is to remove the car from the water.

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