Contaminated Diesel Insurance

Submitted: Tuesday, Apr 08, 2014 at 17:10
ThreadID: 107147 Views:4429 Replies:13 FollowUps:13
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I was checking around for comprehensive insurance and asking whether the policies covered contaminated fuel. So far the answer has been, no. One call centre joker, in South Africa of all places, suggested I was negligent if it happened while another said if it happened I should take the problem up with the fuel company.

I'm wondering should I be worried about this with a new Toyota diesel or is it a rare problem and I'm simply an neurotic focused on things that can go wrong.
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Reply By: John and Regina M - Tuesday, Apr 08, 2014 at 17:19

Tuesday, Apr 08, 2014 at 17:19
This topic was discussed in depth recently and if you search you will find the thread which currently escapes me.

The search function is yr friend. Most topics have been covered, some in incredible depth.
AnswerID: 530120

Follow Up By: Member - Rosss - Tuesday, Apr 08, 2014 at 19:32

Tuesday, Apr 08, 2014 at 19:32
Suncorp in Qld will pay out for engine damage due to dirty fuel, I have claimed and been payed, no question asked. All I had to have was a statement from repairer verifying my damage.
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Reply By: Mick O - Tuesday, Apr 08, 2014 at 17:44

Tuesday, Apr 08, 2014 at 17:44
Here's the thread in question;

Insurance for issues caused by contaminated fuel


Cheers Mick
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trip would doubtless be attended with much hardship.''
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Reply By: Member - escapesilv - Tuesday, Apr 08, 2014 at 17:51

Tuesday, Apr 08, 2014 at 17:51
Hi Mick.

This topic may have been discussed in depth, but never the less having been hit in the pocket with contaminated fuel and lost a perfectly good Ford Transit with only 150,000 Km on the clock, I would not consider you a "neurotic focused on things that can go wrong" because they can.

My golden role ever since my sad event is to use a Mr filter never mind if it takes you longer to fill your tank, specially if it is not your usual servo.

Cheers

Rob
AnswerID: 530122

Reply By: Member - Rosco from way back - Tuesday, Apr 08, 2014 at 18:02

Tuesday, Apr 08, 2014 at 18:02
G'day Mick

Insurance Part A aside. Insurance Part B would be to install an additional filter e.g. Water watch or FM100. Both of which do an excellent job as a first line of defence at collecting poo and/or water prior to your factory filter.

I elected to go with the FM100 which is spliced into the factory water alarm wiring.
AnswerID: 530123

Follow Up By: Member - Hugh D (WA) - Wednesday, Apr 09, 2014 at 15:33

Wednesday, Apr 09, 2014 at 15:33
Rosco,

Just looked at the FM100 and the fuel flow volume. 300 ltr/hr.
How do you determin the fuel flow rate? This sounds high but I am uncertain how to determin flow back.
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Follow Up By: Member - Rosco from way back - Wednesday, Apr 09, 2014 at 17:28

Wednesday, Apr 09, 2014 at 17:28
Not exactly sure myself Hugh, but people like Diesel Care who sell the units could best advise on which unit would suit. Or if it's for the Landy you could try aulro.com as there are heaps of lads in the know there.
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Reply By: scruffy - Tuesday, Apr 08, 2014 at 18:27

Tuesday, Apr 08, 2014 at 18:27
Short answer, worry. Common-rail fuel systems don't like ANY contamination at all. Fit an extra filter etc. Keep all fuel receipts as proof of purchase. The service station/fuel supplier can then be found to be at fault. Bob
AnswerID: 530124

Reply By: Member - Frank P (NSW) - Tuesday, Apr 08, 2014 at 18:36

Tuesday, Apr 08, 2014 at 18:36
Mick,

You mentioned insurance and you mentioned Toyota.

My Prado is insured with Toyota insurance. They cover engine loss/damage through contaminated fuel. There are others that I have heard about on this forum, but I don't know who they are.

Toyota Motor Insurance - 1300 658 027

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Reply By: rodnirene - Tuesday, Apr 08, 2014 at 19:51

Tuesday, Apr 08, 2014 at 19:51
Hi All,

I don't want to get side tracked, but I am new to owning a 4wd & diesel (RG Colorado). Should I be concerned that the standard fuel filtration is not adequate, & if I need to fit additional filtration, where do others fit them to their new vehicle?
Am I starting to worry unnecessarily?


Rod
AnswerID: 530127

Follow Up By: Member - Rosco from way back - Tuesday, Apr 08, 2014 at 20:53

Tuesday, Apr 08, 2014 at 20:53
G'day Rod

The standard fuel filtration should, by all accounts, be adequate.
Those that have added an additional filter are merely hedging their bets due to the fact common rail diesels are very expensively susceptible to dodgy fuel.

Perhaps it's more about peace of mind, but I for one would far rather catch any crud or water as soon as possible.

Having said that, you must be mindful you don't introduce any restrictions to the flow rate of the fuel as that can also cause problems. Due to their design, common rails pull up a heap of fuel, a significant volume of which is returned back to the tank via return lines and usually a heat exchanger as it can be very hot after being compressed to a zillion psi.

So if an additional filter is added, hose size and filter micron size need to be taken into account. These aspects are adequately covered by the reputable mobs that flog the extra gear e.g. Diesel Care et al.
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Follow Up By: Ross M - Tuesday, Apr 08, 2014 at 20:56

Tuesday, Apr 08, 2014 at 20:56
rodnirene
If your house just sits there and is used with no insurance then all is well, until the unexpected happens. Then all is not well.
With a CRD system all is well with normal use but there can be the unexpected.
An additional/pre filter which dewaters and catches fine particles is an insurance policy which allows the House to continue relatively unaffected.

With insurance you have some protection.ie risk management.
There are a number of filters available, some better than others, some more expensive. All filters have to be periodically replaced and the system bled before restarting.

Cheers
Ross M
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Reply By: Kris and Kev - Wednesday, Apr 09, 2014 at 07:11

Wednesday, Apr 09, 2014 at 07:11
It is amazing how some insurance companies will not provide the cover; some will say it depends??? while others will give a straight yes answer. I sent emails to several to get their response in writing. The company I was with said no, so I found one that answered yes and suited my needs, off road cover etc, in fact got better cover for less premium. I stuck with the larger well known companies. But it can get confusing as the company I was with said no, but someone else on the forum got a yes from them??? Again, in writing. I don’t trust that all fuel companies will cover you if you pick up bad fuel from them. That is why I made sure I had the right insurance cover and I hope I will never need it! Kevin
AnswerID: 530142

Follow Up By: Slow one - Wednesday, Apr 09, 2014 at 07:27

Wednesday, Apr 09, 2014 at 07:27
Kevin,
it is so frustrating with who says what. I see above that suncorp covered a vehicle for contaminated fuel, and when you read their policy they say they don't cover it.

I contacted them a couple of times and their answer was. We don't cover damage caused by contaminated fuel.

For a bit of info could you post who covered you for the fuel problem.
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FollowupID: 813013

Follow Up By: Kris and Kev - Wednesday, Apr 09, 2014 at 07:41

Wednesday, Apr 09, 2014 at 07:41
I went with AAMI. Agreed value, written confirmation that they cover for contaminated fuel and cover for off road. Not saying they are the best, but they ticked all of the boxes and were extremely competitive. When this was discussed on other threads people came up with other companies that also seemed very good. Like I said, I hope I never have to make a claim. Kevin
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Follow Up By: Slow one - Wednesday, Apr 09, 2014 at 09:16

Wednesday, Apr 09, 2014 at 09:16
Kevin,
Thanks. I have just emailed them and asked the question of both them and suncorp.

As for your concern about the AAMI. They are owned by Suncorp and they seem fine regarding claims.

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FollowupID: 813018

Follow Up By: Member - bbuzz (NSW) - Friday, Apr 11, 2014 at 16:43

Friday, Apr 11, 2014 at 16:43
Heres my reply from AAMI. Not really definite for me but what you can you do?

As received from AAMI -
"Hi Bill,

Thanks for emailing us.

If the correct fuel was used and contaminated and it was found to be the cause of engine failure or write off, we would take it into 'claims for consideration'. This would require a thorough investigation, which would include sampling the fuel and letters and reports from the petrol station/company involved.

We understand that you have concerns with this specified situation and can assure you that you would be covered if it was found that the contamination was at no fault of your own.

I hope you have a lovely weekend and if you have any further enquiries, please do not hesitate to email us at anytime. "

....................................................................................

Won't really know until I get involved in the process. Hope not to....

bill
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Reply By: Mick T3 - Wednesday, Apr 09, 2014 at 14:47

Wednesday, Apr 09, 2014 at 14:47
It was AAMI and Coles (the guy with the accent in South Africa) who told me they didn't cover contaminated fuel.

The moral of the story appears to be to get things in writing instead of believing the word of a call centre person who answers off the tip of their tonque.

I will question Toyota Insurance when I buy the Prado.

Thanks to everyone who has shared their experience.

Deep down I feel an evil urge to buy an electric scooter and a new bed, but some life force is pushing me to become like Mick Olsen and Willem.
AnswerID: 530162

Follow Up By: garrycol - Wednesday, Apr 09, 2014 at 15:50

Wednesday, Apr 09, 2014 at 15:50
You are quite right, never get one answer. The AAMI call center told me no but the AAMI Claims Assessment center said yes.

Irrespective of what is communicated if an circumstance like contaminated fuel is not covered as an exclusion in the PDS then you are covered no matter what the insurance company says but it might cost a bit to legally force them to pay up.

Garry
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Reply By: Kenell - Wednesday, Apr 09, 2014 at 19:45

Wednesday, Apr 09, 2014 at 19:45
The last time this was raised in the forum, an experienced insurance person responded with the facts that would apply following fuel contamination damage. Most policies I have read do indeed cover it despite what call centre people who answer customer questions might guess. I can't speak for the Internet insurance policies that are often cheap for good reason but I would be surprised if most mainstream policies don't pick up the cover. I have been in the industry for over 40 years and can only suggest that anyone who is denied a claim follows the escalation process all the way. Interpreting the policies on this aspect is complex - unfortunately our industry is not blessed with experience - hence the variations in responses.
AnswerID: 530182

Follow Up By: garrycol - Wednesday, Apr 09, 2014 at 19:55

Wednesday, Apr 09, 2014 at 19:55
What is an Internet insurance policy??
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FollowupID: 813070

Reply By: Kenell - Wednesday, Apr 09, 2014 at 20:16

Wednesday, Apr 09, 2014 at 20:16
Internet insuers are the likes of Youi, Bingle etc.
AnswerID: 530185

Follow Up By: garrycol - Wednesday, Apr 09, 2014 at 22:14

Wednesday, Apr 09, 2014 at 22:14
So no different to any other car insurance company.
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FollowupID: 813082

Reply By: JanP - Friday, Apr 11, 2014 at 19:39

Friday, Apr 11, 2014 at 19:39
Hi Mick.

Sorry this is a bit late, but I have just received the latest policy booklet from AAMI.

It states:

Incorrect fuel usage.

Loss of damage to your car (including damage to your car''s engine or fuel system) caused by the incorrect type of fuel being used.

Form that I would deduct that they would cover fuel contamination, but not if you put the wrong type of fuel in the car.
AnswerID: 530345

Follow Up By: Mick T3 - Saturday, Apr 12, 2014 at 12:21

Saturday, Apr 12, 2014 at 12:21
Thanks, everyone. That's one more problem resolved.
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FollowupID: 813301

Reply By: Member - bbuzz (NSW) - Sunday, Apr 13, 2014 at 08:25

Sunday, Apr 13, 2014 at 08:25
More from AAMI (a subsidiary of Suncorp),

"In situation like this, when claims are made due to contaminated fuel at service station and you can provide us with the proof that it came from that service station (receipt) then yes you'll be fully covered under your car insurance policy."

Keep this safe if you are an AAMI customer.

bill
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