|

We have an insured with a personal auto policy (PAP). The insured vehicle is new with relatively few miles on it. Recently, the fuel injectors became rusted and clogged. It is apparent that our insured got some bad gasoline—contaminated with water—somewhere.

We turned the claim into the insurance company and they have denied coverage, citing the “mechanical breakdown” exclusion.

We don't think that applies and would like your opinion.

New York Subscriber

The insertion of the water-contaminated gasoline into your customer's car was the cause of loss, not mechanical breakdown. In another Q&A, the insured accidentally put diesel fuel into his car. The cause of loss there was the insertion of the wrong type of fuel, not mechanical breakdown. Your customer's situation is similar.

The loss your customer suffered is covered as “other than collision”.

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