Auto Insurance: Frequently asked questions

We recently submitted a comprehensive coverage claim under the personal auto policy (PAP) to one of our insurance carriers. The insured had sustained damage to the glass, paint, and chrome of his car. The car was bought new in 1989, and it appeared that some form of chemical had accidentally been spilled or sprayed on the vehicle. At the company's request, the insured took the vehicle to an automotive glass shop, the dealership where he had bought the car, and an automotive detailing shop. All three of these businesses provided him with a statement that it was their opinion that the vehicle had been exposed to acid rain.  Copies of these statements were submitted to the insurance carrier.

After much procrastination and deliberation, the claims adjuster wrote: "We must respectfully deny your claim which has been confirmed to be a result of acid rain based on that fact that we cover losses that are direct and accidental. Acid rain damage is not covered under the personal auto policy."

We totally disagree with this decision and have expressed our opinion to the adjuster, his supervisor, and the claims manager. We have also discussed the situation with the various other carriers within our agency and all have confirmed that the personal auto policy's comprehensive coverage covers acid rain losses.

The coverage denial you describe does not stand up to scrutiny. It is our impression that insurers routinely pay for damage caused by tree sap when the insured has purchased comprehensive coverage under the personal auto policy. If damage by tree sap is "direct and accidental," then how can it be argued that acid rain is any less so?

Unless it can be said that the insured deliberately sought out the exposure to acid rain, the loss is unquestionably "accidental." As to whether the loss is "direct," there is no question that the loss is direct as to place (the exterior of the covered auto). Further, on the assumption that each drop of acid rain causes its share of damage, each occurrence is also "direct" as to time. Simply, a lot of little losses occur before they become measurable.

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