Does Car Insurance Cover Fire Damage?
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Fire damage in your policy could be a nuanced detail, so it’s best to start by understanding the basics. Each auto policy will have different components consisting of collision, comprehensive, and liability coverage. Each one will apply to a certain situation in the event of an accident.
Collision coverage in your policy will help you cover costs when your vehicle is damaged after colliding with another vehicle or object like a pole. Comprehensive coverage will kick in for items damaged in non-collision situations like theft or vandalism. Liability will help cover costs when you are liable for causing damage to someone else or someone’s property.
If you’re wondering, does car insurance cover fire damage? the best answer will be found in your policy documents under the comphrehensive section. Whether your fire was caused by an external source like a wildfire or malfunction like an electrical short, the coverage will most likely be included in the comprehensive portion of your policy.
One example here is a car catching fire after being parked too close to a structure that caught fire. Vandalism, wildfires spreading, or electrical fires are other examples that will often be covered. Provided that you have comprehensive coverage on your vehicle, the policy will likely cover the restoration or replacement of the vehicle. Remember though that you’ll still need to pay your deductible.
If your policy doesn’t have comphrehensive coverage at all then your vehicle’s fire damage is not expected to be covered. Furthermore, comprehensive coverage doesn’t mean all causes of fire will be reason for submitting a claim. Facotrs like gross negligence could stymy a claim. For instance, if you knew about an electrical problem in your vehicle and didn’t get it fixed, your insurer is not expected to provide assistance with the restoration of the vehicle.
Another area to consider is the items you might store in your car. Though comprehensive coverage may pay for the damage to the vehicle itself, any items that were in the car at the time may not be covered. It’s possible though that depending on the source of the fire, your homeowners or renters insurance may offer assistance with those items.
One factor that makes comphrehensive coverage attractive is that it has a good cost-to-reward ratio. It’s generally pretty affordable for the policy and the cost of replacing or repairing your vehicle after a fire could be quite high. It’s important to consider here things like the age and value of the vehicle, the risk of an area your car is located and how often wildfires occur here, and even your own driving record.
While comprehensive coverage is affordable, if your vehicle isn’t currently worth very much, the cost of paying out of pocket to get a different vehicle in the event of a catastrophe might be more advantageous.
If you’re still asking yourself, does car insurance cover fire damage the answer will mostly depend on whether or not you have comprehensive coverage.
If you already have a policy you should be able to review the document and find that information plainly laid out. You can also check with your agent or insurer and they’ll be able to answer questions regarding your policy. If you’re shopping around for a new auto insurance policy, you’ll want to pay close attention to that comprehensive section to be sure you’re purchasing a policy that provides coverage due to a fire.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
