Does Car Insurance Cover Electrical Fires?

Auto insurance companies investigate vehicle fires carefully. There are a number of guidelines that must be met for a fire claim to be covered and insurance companies want to be sure the claim isn't fraudulent. If your car insurance company finds the fire broke out as a result of a covered incident, such as an accident, then damages will likely be covered under the collision portion of your basic auto insurance policy.

According to the National Fire Protection Association, fire departments in the U.S. respond to approximately 287,000 vehicle fires annually. Property loss as a result of vehicle fires amounts to more than one billion dollars per year. While all states require drivers to purchase liability coverage to protect other drivers, not all states require drivers to buy protection for their own car in the form of collision and comprehensive coverage.

It’s a good idea to know what your state requires you to carry and what your car insurance policy covers before you endure a loss.  Learn about what you are required to have as a driver by selecting your state below.


Auto Insurance Requirements

If your car is damaged by fire and it was not the result from a covered incident, comprehensive coverage may reimburse you for your losses. It’s important to know that some comprehensive policies exclude electrical fires from their fire coverage. Even if the comprehensive portion of your auto insurance policy includes reimbursement for electrical fires, the claims adjuster handling your case will carefully investigate what started the fire and decide if the cause is covered by the terms outlined in your policy.

If your car experiences a mechanical failure that results in an engine fire, damages may also be covered under the comprehensive portion of your car insurance policy. Should your car be purposefully set on fire, you would have to file a police report, and once it was determined you were not involved in causing the incident, comprehensive coverage may reimburse you for the damages.

Property loss as a result of vehicle fires amounts to more than one billion dollars per year.

If you have comprehensive coverage and a car fire results in a “total loss” of your vehicle, your insurer may pay you the actual cash value of your vehicle, minus your deductible. Comprehensive coverage can be a lifesaver if your car is damaged by a fire. Because comprehensive coverage isn’t mandatory, be sure to check with your insurance company to find out if you have it.  If you currently don’t have it, it’s a good idea to see if you need to have comprehensive coverage based on your financial situations and risk assessment level.

Do I Need Comprehensive Coverage?

Whether you want to increase your coverage, lower your premiums, or just learn more about your insurance options, contacting a helpful insurance agent can save you time. Call 855-462-2213 to let our team of professionals help you find the best policy for your needs.