Will Car Insurance Cover My Car if It Catches on Fire?

Having your vehicle catch fire can be a distressing and costly experience. But will your car insurance cover the damage if your car goes up in flames? Here’s what drivers need to know about getting fire damage covered by auto insurance.

What Causes Car Fires?

Some common causes of car fires include:

• Mechanical or electrical issues, like an electrical short or leaking fuel line

• Collisions that rupture the gas tank or damage wiring

• Vandalism and arson

• Natural causes like lightning strikes

• Damage from an external fire that spreads to the vehicle

• Owner negligence like improper maintenance or accidents while smoking or transporting hazardous materials

Will Insurance Cover Fire Damage?

Whether your auto insurance covers a fire loss depends on:

• What caused the fire
• What types of car insurance you have
• Policy limitations and exclusions

Comprehensive insurance generally covers fire damage from non-collision-related causes like electrical faults, vandalism, weather, or rodents chewing through wiring.

Collision insurance pays for fire damage resulting from an accident with another car or object.

However, every situation is different. Your insurer will investigate the specifics of your fire loss to determine if it’s covered under your policy terms.

Major Factors in Getting Fire Damage Covered

Cause of the Fire

Fires from covered risks like weather, mechanical breakdowns, and animal damage are more likely to be covered. But the insurer may deny a claim if they find you negligent or determine the fire was intentionally set.

Your Policy Limits

The amount your insurer pays out is limited to your coverage limits minus any deductible. If repair costs exceed your limits, you’ll pay the difference.

Policy Exclusions

Most policies exclude damage from war, nuclear events, and intentional criminal acts. Fires stemming from these situations would not be covered.

Location of the Fire

Fires that start in your garage and spread to your car are often covered differently than fires originating elsewhere.

Timely Claim Filing

You must report the fire promptly. Waiting weeks or months to make a claim can void your coverage.

What If My Car Is Totaled by a Fire?

If your insurer declares your vehicle a total loss after a fire, you’ll receive a payout for the actual cash value at the time it was damaged. This is the car’s fair market value based on its age and condition.

The settlement should be enough to replace the burned car with a similar used vehicle. Gap insurance can cover any difference between the payout and what you still owe on your auto loan.

Tips for Getting the Most from a Fire Claim

• Act quickly to contact your insurer and start the claims process.

• Take detailed photos of the damage before having the car moved.

• Get a copy of the fire department incident report.

• Save receipts for temporary transportation costs while your car is being repaired or replaced. These may be reimbursable under some policies.

• Research the actual cash value of your vehicle before inspection so you can dispute a low settlement offer if necessary.

Adding Fire Coverage to Your Policy

If you want extra protection beyond what your auto policy provides, you can buy supplemental vehicle fire insurance. This can cover things like rental cars, lost wages, hotel stays, damage to personal property in the car, and more.

Carefully read your existing car insurance policy so you know where you might need expanded fire coverage. Purchasing sufficient limits and coverages can give you peace of mind if catastrophe strikes.