Wear and Tear Exclusion and Oil Discharge
November 18, 2009
Our insured has a PAP and the vehicle in question has physical damage coverage.
The insured brought the vehicle in for an oil change, then drove the vehicle many miles (out of state, on vacation) for about 4 weeks before the engine seized.
Insured then one day got in her vehicle and drove and the engine seized.
The insured had the vehicle towed to her dealer and found that there was no oil in the vehicle. The insured later found said oil all on her garage floor.
Our ASR inspected and found no damage to the oil pan or oil discharge on the vehicle. It appears that the plug fell out.
Would this be a covered loss or normal wear and tear?
Ohio Subscriber
This would be a covered loss. The plug coming out is not the normal and expected wear and tear to which this exclusion is meant to apply. Also, the insured had no reason to know about the damage until the engine seized, and the seizing was due to the plug coming out.