Vehicle Requiring Diesel Fuel Damaged by Regular Fuel Fill-up

Insured loaned the insured vehicle to a friend.  The friend was pumping fuel and accidentally put regular gasoline into the diesel vehicle. This caused $700 in engine damage. Is this a covered loss?

Illinois Subscriber

Although the damage could be considered mechanical damage, which would be excluded under Exclusion 2 of Part D of the PAP, we contend the insured should receive the benefit of the doubt in this situation.

Physical damage coverage is for direct and accidental loss to a covered auto. Although the friend purposefully filled up the tank, he put the wrong fuel in it by accident and thus the resulting engine damage was also accidental.  Exclusion 2 is designed to eliminate coverage for gradual damage to the auto that occurs under normal and expected conditions, and damage that is inherent in the car and occurs due to a problem with the car itself.

The damage you describe was done by accident and from the outside. Therefore, it should be covered under the policy's other than collision coverage.