Will Auto Insurance Cover Fire Damage?

Last Updated on December 27, 2025

Most drivers think about auto insurance for collisions, theft, or vandalism—but fire damage can be just as financially devastating.

The good news: car insurance can cover fire damage in many situations. The catch is that it depends on which coverage you carry (and what caused the fire). If you only have minimum liability coverage, your policy may not pay to repair or replace your own vehicle after a fire.

Below is a clear guide to what’s typically covered, what isn’t, and what to do if your car catches fire.

Key Takeaways

• Auto insurance can cover fire damage, but in most cases you’ll need comprehensive coverage (and collision may apply if a crash caused the fire).
• If you only carry state-minimum liability coverage, your policy typically won’t pay to repair or replace your own vehicle after a fire.
• Fire losses are often settled as a total loss payout based on the car’s actual cash value (ACV) minus your deductible; gap insurance can help if you owe more than the car is worth.
• Expect extra documentation on fire claims (fire report, photos, cause investigation), and keep records of towing, storage, and rental costs.

Does Auto Insurance Cover Fire Damage?

Usually, yes—if you have comprehensive coverage. Fire is generally considered a “non-collision” loss, which is what comprehensive is designed for.

However, there are two common exceptions:

• Collision-related fires: If a crash causes the fire (for example, you hit a barrier and the vehicle ignites), the claim may be handled under collision coverage.
• Liability-only policies: Liability coverage generally pays for other people’s injuries and property damage—not your own vehicle—so fire damage to your car is typically not covered.

Which Coverage Pays for Fire Damage?

Comprehensive Coverage

Comprehensive coverage is the most common coverage that applies to vehicle fire damage. It typically covers fire from many non-collision causes, including wildfire exposure, arson, electrical fires, and garage fires.

Collision Coverage

Collision coverage can apply if the fire is the result of a crash (for example, impact damage leads to a fire). Your insurer will usually determine which coverage applies based on the facts of the loss.

State-Minimum Liability Coverage

If you’re carrying only what your state requires, your policy may not include comprehensive or collision. You can compare what your state requires here: state-by-state auto insurance requirements.

Also note: if your vehicle is financed, lenders typically require physical damage coverage. Here’s what insurers and lenders usually expect for car insurance on financed vehicles.

Common Fire Scenarios and How Coverage Usually Works

Fire claims can happen in a surprising number of real-world situations. Here’s how coverage typically plays out:

• Wildfires and smoke damage: Comprehensive coverage is usually the starting point if the vehicle is damaged by flames, heat, ash, or smoke.
• Arson or intentional damage by someone else: This is typically treated like vandalism and is commonly handled under comprehensive coverage.
• Garage or driveway fires: Your auto policy usually covers the vehicle (if you have comprehensive), while homeowners insurance typically covers the structure. Your homeowners policy generally doesn’t replace the vehicle itself.
• Engine or electrical fires: Comprehensive often covers the fire damage to the vehicle. But most auto policies do not pay for the underlying mechanical breakdown or defective part that caused the fire—see whether car insurance covers mechanical repairs.
• Crash-related fires: If a collision triggers the fire, your insurer may handle the loss under collision coverage (and possibly liability, depending on who was at fault and what was damaged).

Will Insurance Replace a Car Destroyed by Fire?

Often, severe fire damage results in a total loss because heat and smoke can damage wiring, interior materials, and critical components throughout the vehicle.

If your insurer declares a total loss, payouts are usually based on the vehicle’s actual cash value (ACV) at the time of loss minus your deductible. Here’s a refresher on how car insurance deductibles work.

If you want a deeper breakdown of what “totaled” means (and what happens next), see what happens if your car is a total loss.

Important: If you owe more on your loan than the car is worth, you may still have a balance after a total loss settlement. That’s where gap insurance can help.

What About Personal Items Inside the Car?

Auto insurance usually focuses on the vehicle itself. Personal property inside the car (laptop, phone, luggage, child seat, etc.) may not be covered by your auto policy. In many cases, those items are handled under homeowners or renters insurance (subject to deductibles and limits). If you regularly keep valuable items in your car, it’s worth reviewing your personal property coverage.

How to File a Fire Damage Claim

If your vehicle catches fire, prioritize safety first and paperwork second. Once everyone is safe, the steps below can help your claim go smoother:

1. Call 911 and move to a safe area away from the vehicle.
2. Get a fire report from the fire department (and a police report if applicable).
3. Take photos and video of the damage and the scene (when safe).
4. Contact your insurer and start a claim. Ask what documentation they need and where the vehicle should be towed.
5. Keep receipts for towing, storage, and rental expenses (if you have rental reimbursement coverage).

Expect an Investigation

Fire losses can trigger extra scrutiny because arson is a known type of insurance fraud. That doesn’t mean your claim is “in trouble”—it just means the insurer may confirm the cause of the fire and review reports before issuing payment.

If your claim seems stuck or the insurer is dragging its feet, here are practical steps to take if your car insurance company won’t pay or is stalling.

Read the Fine Print: Fire-Related Exclusions to Know

While comprehensive commonly covers fire, coverage is always subject to your policy terms and exclusions. Common issues that can complicate fire claims include:

• Intentional acts: Damage you intentionally cause is typically excluded.
• Mechanical breakdown: The fire damage may be covered, but the failed part that caused the fire often isn’t.
• Undisclosed commercial use: Using the car for delivery/ride-hailing without proper coverage can create claim issues.
• Limits, deductibles, and endorsements: Your payout depends on the car’s value, your deductible, and any optional coverages you added.

FAQs on Auto Insurance and Fire Damage

Bottom Line: Will Auto Insurance Cover Fire Damage?

Fire damage is typically covered when you carry comprehensive coverage (and sometimes collision coverage if the fire resulted from a crash). If you only have liability coverage, your policy usually won’t pay to repair or replace your vehicle after a fire.

The best way to protect yourself is to confirm you have the right coverage, choose a deductible you can afford, and consider gap insurance if you owe more than your vehicle is worth.