Fire damage is covered only if you have comprehensive coverage
Standard liability insurance does not cover fire damage to your own vehicle. You need comprehensive coverage — the part of your policy that pays for damage from events you cannot control, including fire, theft, weather, and vandalism. If you have only liability coverage, a fire that destroys your car leaves you with no payout and no car.
Comprehensive coverage is optional in most states, but required if you finance or lease a vehicle. If you own your car outright, the choice is yours, though most people with cars worth more than a few thousand dollars carry it. The cost varies by insurer, your location, your car's age, and the deductible you choose — typically between $100 and $1,000 per claim.
When a fire happens, your insurer will investigate to determine the cause. If the fire started from a mechanical failure, an electrical problem, or an accident, comprehensive coverage pays. If someone deliberately set the fire, it is still covered under comprehensive. The one exception is if you caused the fire intentionally — insurers will not pay for damage you deliberately created.
Key Takeaways
- Comprehensive coverage is the only part of a standard car insurance policy that covers fire damage, and it is optional unless you finance or lease your vehicle.
- You will pay a deductible — usually $100 to $1,000 — before your insurer pays the rest of the fire damage claim.
- Comprehensive covers fires from mechanical failure, electrical problems, accidents, and arson, but not fires you intentionally caused.
- If you have only liability coverage, a fire destroys your car with no insurance payout, so check your declarations page now to confirm what you carry.
How comprehensive coverage pays for fire damage
When you file a fire damage claim, your insurer assigns an adjuster to inspect the vehicle and determine the cause. The adjuster estimates the cost to repair the car or, if the damage is severe enough, declares it a total loss. A car is usually considered totaled when repair costs exceed 70 to 80 percent of its actual cash value — the amount your insurer believes the car was worth before the fire.
If the car is repairable, your insurer pays the repair estimate minus your deductible. If it is totaled, they pay the actual cash value minus your deductible. You keep any salvage value — if the burned car is worth $500 as scrap metal, the insurer may deduct that from what they owe you, or they may let you keep the car and pay you the full amount. This varies by insurer and state.
The timeline for a fire claim is usually faster than other types of damage claims because the cause is often clear. Most insurers settle fire claims within two to four weeks, though total loss claims can take longer if there is a dispute over the car's value.
What happens if fire damage occurs while you are financing or leasing
If you are paying off a car loan or leasing, your lender or leasing company requires comprehensive coverage as a condition of the contract. They have what is called a lienholder clause in your policy, which means they are listed as having an interest in the vehicle. If a fire totals the car, the insurance payout goes first to pay off what you owe on the loan or lease, then to you for any remaining amount.
If you owe $15,000 on a car loan and the car is worth $12,000 before the fire, you are underwater — you owe more than the car is worth. A fire that totals the car does not change this. Your insurer pays $12,000 (minus your deductible), which goes to the lender, and you still owe $3,000. This is called gap insurance territory, and it is a separate optional coverage that protects you in this situation. Gap insurance is often included with leases but rarely with loans unless you purchase it at the dealership.
Fire damage from accidents versus other causes
Comprehensive coverage pays for fire damage regardless of how the fire started, as long as you did not cause it intentionally. A fire that starts after a collision is covered. A fire from an electrical short in the wiring is covered. A fire from a fuel leak after an accident is covered. A fire from arson is covered.
The only scenario where comprehensive does not pay is if you deliberately set the fire or had someone else set it on your behalf. Insurers investigate total loss fires carefully, and if they find evidence of intentional damage, they will deny the claim and may report you to law enforcement. This is rare, but it is why insurers take fire claims seriously.
If the fire happened during a collision, you may also have a collision claim available. Collision coverage pays for damage from hitting another vehicle or object. In practice, most people file under comprehensive because it usually has a lower deductible, but you can ask your insurer which coverage applies and which deductible you would pay.
Checking your policy for comprehensive coverage right now
Your insurance declarations page — the summary your insurer mails or emails you each year — lists every coverage you carry. Look for the line that says "Comprehensive" or "Other Than Collision." Next to it will be a deductible amount. If that line is blank or says $0, you do not have comprehensive coverage.
If you financed or leased your car, comprehensive should be listed because your lender requires it. If you own the car outright and comprehensive is not listed, you are not covered for fire damage. You can add it by calling your insurer or logging into your online account. Most insurers let you add or change coverage when ready, though the new coverage typically takes effect the next day.
The cost to add comprehensive depends on your car's age, your location, and the deductible you choose. A newer car in an urban area with a $500 deductible might cost $30 to $60 per month. An older car in a rural area with a $1,000 deductible might cost $10 to $20 per month. Ask your insurer for a quote before you decide.
What to do if your car catches fire
If your car catches fire while you are driving, get out when ready and move away from the vehicle. Do not try to extinguish the fire yourself unless it is very small and you have a fire extinguisher. Call 911 and let the fire department handle it. Once you are safe, take photos of the burned vehicle from multiple angles if it is safe to do so.
After the fire is out and the scene is find, contact your insurance company as soon as possible. Have your policy number ready. Tell the insurer where the car is located and ask whether they will arrange to have it towed or whether you need to arrange towing yourself. Some insurers cover towing as part of the claim; others do not.
The insurer will assign an adjuster to inspect the vehicle. Be present for the inspection if you can, and point out any damage the adjuster might miss. Keep copies of all receipts, photos, and correspondence. If you had personal items in the car that were destroyed, document those separately — personal property inside a vehicle is usually not covered by car insurance, but it may be covered by your homeowners or renters policy.
Frequently Asked Questions
Does liability insurance cover fire damage to my car?
No. Liability insurance covers damage you cause to someone else's property or injuries you cause to someone else. It does not cover damage to your own vehicle. Only comprehensive coverage pays for fire damage to your car.
What if someone else's car caught fire and damaged mine?
The other driver's liability insurance should pay for the damage to your car. You would file a claim with their insurer. If they do not have insurance or their insurer denies the claim, your own comprehensive or collision coverage can pay, and you would pay your deductible. You can then pursue the other driver for reimbursement of your deductible.
Does comprehensive cover the cost of a rental car while mine is being repaired?
Only if you have rental reimbursement coverage, which is a separate optional add-on. Comprehensive alone does not cover rental cars. Rental reimbursement typically pays $30 to $50 per day up to a limit of $900 to $1,500 per claim. Ask your insurer whether you have this coverage.
Will my rates go up if I file a fire damage claim?
Not usually. Most insurers do not raise rates for comprehensive claims because fire damage is not considered your fault. Collision claims and at-fault accident claims typically do raise rates, but fire claims usually do not. Ask your insurer before you file to confirm their specific policy.
Can I add comprehensive coverage after my car catches fire?
No. Insurance does not cover damage that happened before the coverage was in effect. You must have comprehensive coverage in place before the fire occurs. If your car has already caught fire, adding comprehensive now will not pay for that damage.