Does auto insurance cover fire damage?

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Important facts to know...

  • Fire damage can be devastating to a vehicle
  • It is important to know the reason for the fire before filing a claim
  • Collision will cover fires started due to an accident
  • Comprehensive insurance is needed to cover other situations

Auto insurance covers a lot of things. Fire, theft, vandalism and other unexpected events can severely damage your vehicle and lower the value of your car.  You need car insurance so that you will have help when you most need it so that you can recoup your financial loss.

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Should I have optional coverages?

It’s not enough to have standard insurance coverage if you want to make sure you are covered in any situation. Many people want to keep their expenses down to the lowest possible cost.

This desire to save is understandable when times can be tough sometimes trying to balance a family budget.

If you fail to have the right type of coverage for your vehicle, you will not have the protection that you need to make sure all types of damage are covered.

Remember that liability only covers your legal responsibility to others and does nothing to protect your property or injuries.

In the case of fire damage, like many situations, whether insurance will cover this will depend on how the fire started. If the fire was a result of an accident, your collision insurance might pay for it if you are carrying this insurance.

In some cases, your vehicle may be so damaged by fire, that it is irreparable. In this case, the insurance company will have no choice but to replace your car with another one.

Insurance companies have some limited obligation to make sure the vehicles they cover are safe for the road, and they may even come and get a car that they think is unsafe to remove the legal risk.

If you do not have collision coverage on your vehicle, you may not have a way to pay for damages to your car, even if it is due to fire.

Understanding Liability Coverage

One of the reasons insurance can be confusing is that different types of coverage cover completely different situations. For example, collision insurance will cover the fire in question if it was the collision that caused it and you were at fault.

But if the fire was caused by vandalism, getting overheated, or a mechanical failure, collision insurance will not cover it.

To understand what you need to cover fire under every circumstance, you should first understand liability coverage.

Liability coverage can be confusing. People hear that it covers “property damage liability” and “bodily injury liability.” They assume that this means that an accident is covered and that their vehicle will be repaired using this coverage but this is not so.

By definition, liability is insurance that only covers the liability (legal responsibility) you have to others.

Liability will do nothing to help you repair or recoup your losses that you incur as a result of an accident or another incident that is your fault.

Coverage for Fire Damage

There are no two insurance claims that are exactly alike and no two insurance companies that are exactly alike. Every circumstance is different and different situations require different coverage types to cover them.

To make sure that you are covered for fire damage due to every circumstance, do the following:

  • Get collision insurance – If you have collision coverage, your car will be repaired no matter who is at fault, provided you have met your deductible. Choosing a lower deductible such as $500 will avoid you having to pay a lot of out-of-pocket expense before your insurance starts paying.
  • Get comprehensive coverage – While collision is for moving accidents, think of comprehensive insurance as “non-moving” accidents. Acts of nature fall under this category as does an act of vandalism or car theft.
  • Get uninsured/underinsured coverage – Uninsured and underinsured coverage is a great optional coverage if you are ever hit by a motorist who failed to have insurance or adequate insurance to cover the damages they do to your vehicle.

Do Your Homework

You can inquire about any and all of these types of coverages with your insurance representative when you shop online and get a free quote from our site.

It’s wise to do your homework before you buy so that you will have a better idea of what is offered and how one company compares to another.

Insurance companies are in the business of balancing risk with cost, and you should be, too. As a vehicle owner, you have a responsibility not only to yourself and your family but other drivers on the road.

You should watch your driving behavior at all times and keep your driving record clean. This clean record will help you to keep your insurance premiums down.

By carrying the state-required liability insurance, you will be covered for any damages that you inflict on others due to your negligence.

Keeping in mind that your liability insurance coverage does not cover your damages or injuries, you should also make sure that you carry collision and comprehensive insurance to ensure you will be able to have your car repaired, no matter what the situation.

Fire can be so damaging and destructive that your car could completely burn up and be undrivable on the roads. In this case, your insurance would have to completely replace your vehicle to pay your claim.

Having uninsured and underinsured motorist coverage will cover any damages or injuries that you receive as a result of the negligence of a driver who is uninsured or underinsured.

Even though everyone is supposed to have insurance, not everyone follows the law so you can purchase this type of optional coverage to protect yourself from these circumstances.

Avoid Overheating Your Vehicle

One word of caution: you should avoid letting your vehicle get overheated so that it causes it to spark or cause a mechanical fire.

Remember that insurance only covers damages that are a direct result of either an accident or an incident such as a storm, vandalism, or other external factors. A mechanical failure is never paid by insurance if it happens as a result of a mechanical problem.

Getting your car checked out regularly and avoiding letting it overheat on hot days may help to lower the risk of this situation. Insurance companies will not pay a claim based on a fire that was started for any other reason than one that is covered in your policy.

It is so important to thoroughly understand your policy and compare it to others before deciding which insurance is best.

Shop and Compare to Save

You should think of insurance much in the same way as shopping for anything else. Look at the benefits and the exclusions of different policies.

Ask for quotes from different companies before deciding which one will suit you best and be sure to ask the right questions as it involves fire damage or any other circumstances that you are curious about.

By talking with a representative about the specifics of policy, you should be able to get a better idea of what will be covered in different situations.

Don’t be shy about asking the important questions that you need to be answered regarding a variety of situations that could happen to your vehicle.

The most important thing is making sure that you have enough insurance to cover any contingency, not just the most obvious or common ones.

Providing financial recoupment for loss for life’s unexpected situations is what insurance is all about. Shop and compare insurance plans today by entering your zip code below!

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