Fire Damage and Car Insurance: What’s Covered and How It Works

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Written by Mandy Sleight Edited by Lequita Westbrooks

Updated June 5, 2024

A fire can quickly cause serious damage to your vehicle — your insurance company could even consider it totaled if the damage is extensive enough. But fortunately, you can file a claim for the damage if you have comprehensive or collision insurance coverage.

Fire damage is one of the most expensive car insurance claims insurers pay for. The average non-crash vehicle fire claim payout is $9,655, according to the most recent data from the Highway Loss Data Institute.

Keep reading to learn how auto policies work for fire damage, how much comprehensive coverage might cost, and when it’s worth filing an insurance claim.

Does Car Insurance Cover Fire Damage?

Car insurance covers fire damage — but only if you have the right type of coverage. For example, comprehensive insurance covers damage from things outside your control, like a wildfire, natural disasters, or animal damage that creates an electrical fire. Collision insurance typically pays if you hit another vehicle or inanimate object that causes a car fire.

Liability insurance usually won’t cover fire damage unless you hit another vehicle that catches on fire. In this case, your liability coverage will pay for only the other driver’s damage, not yours. But if someone hits you and causes your car to catch fire, their liability insurance will pay for your damages.

Let’s look at the types of fires that could damage your vehicle and how they can affect your auto insurance.

How fires can affect car insurance

The typical causes of car fires include:

• House or garage fire that spreads to your parked car
• Arson or vandalism
• An engine fire from overheating, faulty wiring, or mechanical problems
• Fuel or fluid leaks
• Catalytic converter failure from an engine misfire or unburnt fuel

Although comprehensive insurance is optional, your lender might require it if you finance or lease your vehicle. You should also consider comprehensive coverage if you live in an area prone to natural disasters.

But don’t wait until the storm is already in your area. Insurers may not allow policy changes, like adding comprehensive coverage, until after the storm is over, so it’s important to have coverage in place before disaster strikes.

Is It Worth It to File a Fire Damage Claim?

Only you can determine if filing an insurance claim for fire damage is worth it. Unless you intentionally caused the fire, your insurance company should cover the claim as long as you have the right type of insurance.

Fires can cause major damage to your car and may total it, so having comprehensive and collision coverage — which are typically part of full coverage — can help pay for your vehicle loss.

But keep in mind that these coverages can increase your insurance premium, and any claim you file could lead to future rate increases. That said, comprehensive claims typically have little to no effect on your premiums.

When deciding if a claim is worth it, consider factors such as:

• The extent of the damage
• Cost of repairs
• How long it will take to fix
• Your coverage deductible (the amount you pay toward covered claims)

If you’re ready to file a fire damage claim, here’s how.

How to File an Auto Insurance Claim for Fire Damage

If a fire has damaged your car, don’t panic. Filing a claim with your insurance company is as easy as these five steps:

1. Document the damage: Take photos or videos to document the damage, which you can provide as proof to your car insurance adjuster when they investigate the claim.
2. File the claim: File a claim with your insurance company online, over the phone, through the company’s mobile app, or with your insurance agent. Provide details like what happened before the fire, where it happened, the parties involved, and the photos or video you took at the scene.
3. Track your claim: Your insurer will provide a claim number to track the claims process and assign a claims adjuster. Make sure you’re following the progress and receiving notifications so you can answer any questions the adjuster might have.
4. Get a repair estimate: Work with your adjuster to get a repair estimate and choose a repair shop to fix your car’s fire damage. Once the adjuster approves the estimate, the shop can begin repairs.
5. Receive the claim settlement: Your insurer might pay you or the shop. Work with the adjuster to reach a settlement and arrange the claim payout.

How Much Does It Cost to Repair Fire Damage?

Fire damage repair costs depend on the type and severity of the damage, where you live, your insurance policy coverage and deductible, and your out-of-pocket costs.

Of the 1.5 million property damage fire claims filed in 2022, 15% were vehicle fires, according to the National Fire Protection Association. Most fires (63%) happen in the car’s engine area, which could be due to mechanical or electrical failure, negligence, or lack of maintenance. Hot or smoldering objects, such as cigarettes or sparks in the vehicle, are the next leading cause (13%) of car fires.

Regular car maintenance can prevent car fires, especially if you have an older vehicle. Paying attention to things like oil stains on your driveway (which could be a fluid loss) or electrical irregularities, such as exposed wiring or blown fuses, can also prevent a fire. Finally, pay attention to your car’s thermostat while you’re driving to ensure it doesn’t overheat.

How Much Does Comprehensive Insurance Cost?

The national average cost of comprehensive insurance is $174 for a standard six-month policy, or $29 per month, according to the National Association of Insurance Commissioners (NAIC). Factors like the cost of repairs, vehicle theft rates, your ZIP code, and your coverages determine how much you pay.

The table below shows the average comprehensive premium by state, according to data from the NAIC.

Drivers in California and Idaho pay the least for comprehensive insurance, while Tennessee and Wyoming drivers pay the most. The higher comprehensive coverage costs in Tennessee and Wyoming could be due to more people driving older vehicles that may not be current on maintenance. Old cars are more likely to catch fire because of wear and tear.

FAQs About Fire Damage and Car Insurance

We answered the most common questions about fire damage and car insurance to help you choose the right coverage for your vehicle.

What happens if your car catches on fire?

If your car catches fire, pull over as soon as you can safely. Then, shut off the engine and get out of the vehicle immediately. Stay at least 100 feet away from the car and call 911 to notify the fire and police departments. Don’t attempt to put out the fire yourself or open the hood or any doors since this can increase the air supply and accelerate the fire. Contact your insurance company for next steps.

What kind of fire does insurance cover?

Auto insurance policies cover most fire incidents but not intentional acts. So, if your car has an electrical or mechanical malfunction and sparks ignite your engine, you’re probably covered. But if you light your vehicle on fire to get out of paying the loan, you won’t be.

What’s the deductible for fire damage?

The deductible for fire damage depends on the cause of the fire and your coverage. For example, if a wildfire totals your car and you have a $250 comprehensive deductible, you’ll pay $250. But if you cause an accident and fluid leaks, causing an engine fire, you’d pay your collision deductible — which could be anywhere from $250 to $1,000.

How can you protect your car from fire damage?

The best way to protect your car from fire damage is to perform routine maintenance and inspect it regularly, especially if it’s an older vehicle. Some telltale signs that could cause serious issues and lead to fire damage are oil stains in your driveway or parking spot, frequent overheating, exposed wiring, blown fuses, or other electrical problems.

Does insurance cover engine fires?

It depends. Your car insurance policy should cover engine fires, but it depends on the situation and your insurance coverage. For example, if you’re at fault in an accident but have a liability-only policy, there’s no coverage because you don’t have collision or comprehensive car insurance. But if you have full-coverage car insurance, the policy should cover you.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. Highway Loss Data Institute, “Noncrash fire insurance losses overview,” Accessed May 28, 2024.
2. National Association of Insurance Commissioners, “2019/2020 Auto Insurance Database Report,” Accessed May 28, 2024.
3. National Fire Prevention Association, “Fire loss in the United States,” Accessed May 28, 2024.
4. National Fire Prevention Association, “Vehicle Fires,” Accessed May 28, 2024.

Mandy Sleight Auto Insurance Writer

Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She is a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications. She uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content to help readers make smarter insurance choices that have a positive effect on their budgets and finances.