Does auto insurance cover damage from water in gasoline?

More reports of water in gas

BIRMINGHAM, Ala. (WBRC) - Another gas station has closed temporarily after water was found in the gasoline. We told you about another similar situation yesterday after drivers started having car problems.

The owner of the Shell gas station at Lorna Road says they closed down the pumps at 1:00 p.m. this afternoon.

Crews were on site testing the gasoline for water contamination, and then pumping out the regular and premium gasoline, replacing it with non-contaminated gas.

A viewer says his car wouldn’t start after filling up with the tainted gas the night before. He says he’s facing at least $1,000 in repairs. But who pays for it? Nathan Marcus with Allstate says not your insurance!

“They’re going to cover exterior damage. Usually you hit something or something hits you.”

Warranties and extended warranties might, but again Marcus says that depends.

“If they’re able to prove that there was water in the gas, no, they’re not going to cover it. It’s going to fall back on the automobile owner.”

So who’s really at fault?

“The gasoline station. They’re the ones that had water in the gas. They sold it to you, you bought it in good faith.”

He says when your car conks out from the bad gasoline, go back to the gas station with proof.

“Siphon some gasoline out, put it in a mason jar and it won’t take long to separate. At that point, you go back to the gas station, they’re the ones on the hook.”

The gas station owner should act as liaison between you and their insurance company. Be sure to keep all receipts and any pictures you take those will help your case.

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