Does Car Insurance Cover Fire Damage?

Regardless of the care and caution, fires can occur anywhere, any time. A building can catch fire or the car itself. The first thought during a fire is protecting one’s family. Once the fire is under control, people generally tend to think about paying for the fire damage repairs. When it comes to vehicles, a fire can cause minor and extensive damage to the car. In either case, the repair costs will be high.

The reason is that you will opt for the best car repair centres. In case you select a cheaper option, the repair quality might not be up to the mark. It will affect the car’s resale value and performance. After reading the title, you know what PitStopArabia plans to discuss in this blog post. But before doing so, let us briefly consider the reasons behind a fire.

Top Causes of Vehicle Fires

A fire can break out for several reasons:

Electrical Short-circuiting

One of the most common causes of a car fire is electrical short-circuiting. It can happen due to poor maintenance, installation of aftermarket parts, and several other reasons. A routine electrical audit can help protect against this problem.

Fuel System Leaks

Please do not take fuel system leaks lightly. They are pretty dangerous to yourself and others as fuel is highly flammable.

Poor Maintenance

If you fail to invest in periodic car maintenance, there is an increased likelihood of your car running into problems or catching fire. Therefore, never put off maintenance.

Car Batteries

Whether it is an internal combustion vehicle, hybrid, or pure electric, they all have batteries. If there is a problem with the battery, it may catch fire.

Arson

People might set fire to your car out of hatred or cause fear in society. It is common during protests.

Surrounding Conditions

At times, your car might catch fire due to the surrounding. For example, the building might catch fire, and the flames might engulf the vehicle. In the USA, wildfires are quite common and are known to destroy vehicles.

An automobile may catch fire for numerous other reasons than the ones listed above. If you are a smoker, the cigarette ash might lead to a fire. It is impossible to list every reason here. Instead, let us get back to our main discussion.

Car Insurance and Fire Damage

There are two types of car insurance policies – comprehensive and third party. The cover for fire damage varies in each policy.

Comprehensive Car Insurance and Fire Damage

If you have comprehensive car insurance, you can file a claim with your insurance company for fire damage. Nearly every comprehensive policy covers fire damage. If your policy does not, you can buy it as an add-on. A car insurance company in UAE or elsewhere may reject your claim if the damage is due to your negligence.

For example, earlier, we said that one of the causes of a car fire is installing aftermarket parts. If a vehicle catches fire due to it and the insurer does not approve the installation beforehand, your claim may be rejected. Hence, it is always best to get approval from the insurer before making modifications to the vehicle.

Third-Party Car Insurance and Fire Damage

In third party insurance, the insurer only pays for damages to the third party. The policy does not cover any damage to the policyholder's automobile. In other words, third party car insurance does not offer protection against fire damage. But there is no cause for alarm. For example, if your car catches fire during a collision and the other party is at fault, you can claim damages from the third party. If the fire damage is because of a building fire, you can claim damages from the building's insurer or management.

Will My Insurance Rates Go Up If I File A Claim For Fire Damage?

Insurance companies rely upon a variety of factors when determining the insurance premium. The number of claims a policyholder files is one of the factors. Therefore, your insurance rate might go up if you file a claim for fire damage. However, the best insurance companies in UAE and worldwide do not increase rates for claims that are not your fault. For instance, if a building fire damages your vehicle, your premium will stay unchanged.

How to Prevent Fire Damage

There are various ways through which you can protect your car against fire, including:

• Do Not Smoke Inside the Car
• Have a Fire Extinguisher in the Trunk
• Do Not Store Flammables Inside the Car
• Park in a Secure Area
• Avoid Installing Aftermarket Parts
• Do Not Skip Periodic Car Maintenance

Final Thoughts

It concludes our article. If you have any questions in mind, please feel free to send us your queries. If you see smoke or flames emitting from the vehicle, building or anywhere else, please notify the fire department right away. Thank You.