Recently, a member related to me that the one of their insureds with a PAP received some contaminated gasoline that caused damage to his vehicle. The member agency submitted the claim to the insurance company, but they denied the coverage under the mechanical breakdown exclusion.
The bad gasoline in the insured’s vehicle was the cause of loss, not a mechanical breakdown. Therefore, it is a covered comprehensive loss. The mechanical breakdown exclusion is intended to eliminate coverage for damage to the vehicle that happens with normal and expected use, not the accidental loss caused by bad fuel.