My car caught on fire: Will my insurance cover it?
7 minute read Published on Nov 15, 2025 by BrokerLink Communications
Car fires are more dangerous and common than most Canadian drivers assume. According to Transport Canada, approximately 10,000 vehicle fires occur each year due to mechanical failure, car accidents, or intentional acts. Beyond the threat to your life and property, you'll likely be wondering whether your auto insurance offers coverage for this type of damage.
In this guide, we'll break down what type of car insurance covers fire damage, common exclusions, what steps you need to take when filing an insurance claim, and how to prevent vehicle fires in the first place.
Common causes of car fires
There are numerous reasons why a car fire can start. Some are due to accidents, while others are caused by intentional harm. Here's a closer look at some of the most common ones below:
Car accidents
High-impact car accidents can cause fuel lines to rupture, fluid leaks, or sparks, all of which can cause a fire to ignite.
Engine fires/mechanical breakdowns
Whether it be overheated engines, fuel system leaks, or a lack of regular servicing, these can all cause mechanical breakdowns that lead to fire damage.
Electrical malfunctions
From short circuits to battery issues, electrical fires can start and spread quickly, leading to a total loss.
Arson or vandalism
Cars parked in unsecured garages or on the road can fall victim to theft or intentional vandalism.
Does my car insurance cover fire damage?
Yes, your auto insurance policy will cover fire damage. But, there's a catch--you'll only have protection from vehicle fires if you have comprehensive coverage.
Comprehensive Coverage: what is it?
Unlike mandatory insurance, such as liability coverage, accident benefits, or uninsured motorist auto insurance, comprehensive coverage is optional, meaning you'll need to specifically ask your insurance company to add this insurance coverage to your plan.
Comprehensive car insurance will cover the cost of repairing or replacing your damaged vehicle if the damage arises from a non-collision event. Common covered perils included in this optional policy include:
Fire damage
Theft and vandalism
Water damage
Falling object
Severe weather conditions
What comprehensive insurance doesn't cover is physical property damage your vehicle suffers as a result of an at-fault collision. This type of damage is typically covered by collision coverage, which is another type of optional auto insurance policy that can be added to your standard car insurance coverage as an endorsement.
Comprehensive car insurance coverage: provincial differences
Insurance is regulated by each province. Therefore, while all Canadian motorists must have car insurance, the types of car insurance you need, along with coverage minimums, will vary depending on where you live.
In no province in Canada is comprehensive insurance mandatory. However, if you choose to lease a vehicle or have a loan on your car, you may be required to have "full coverage," which includes comprehensive and collision coverage as a condition of your contract. Should you own your vehicle outright, you will have the option of adding comprehensive car insurance to your standard plan for additional peace of mind. Note, however, that because this policy is optional, you will need to pay a higher premium.
When fire damage is not covered by your auto insurance
While comprehensive insurance policies usually cover fire damage, there are exceptions that can leave Canadian drivers unprotected. Understanding these exclusions is crucial to avoiding unexpected claim denials and expensive car repairs. Key takeaways:
You don't have comprehensive insurance
If you only opt for standard auto insurance with your insurance company, fire damage likely won’t be covered. Comprehensive insurance is optional in all provinces, unless you lease or finance your vehicle. Therefore, without it, damage caused by a car fire would be your responsibility.
There's a lapse in your insurance
If your auto insurance policy has expired or it was cancelled because you did not pay your premiums, your insurance provider has no legal obligation to cover any damages that may arise to your automobile. This is why staying on top of your payments and confirming with your insurer that you have active coverage is essential, especially if you are up for a renewal soon.
The fire starts intentionally
If the vehicle owner deliberately sets fire to their car or the fire is caused by someone on their behalf, the claim will be denied by insurers. Car insurance only offers protection against accidental and unavoidable damages, not intentional ones.
Suspicion of fraud
If the circumstances surrounding how your car fire was caused, it will likely be flagged for fraud with your insurer. For example, you've made multiple claims for fire repairs in the past, any recent incidents may be seen as suspicious.
Fraud is a criminal offence in Canada. If your insurer performs an investigation and insurance fraud is concluded, your insurance provider will cancel your insurance policies, and you may be criminally charged.
Your claims process: steps to take after a car fire
If a fire occurs while you're driving or parked, here is what you need to do to ensure your safety and to support your claims process:
Ensure your safety
First things first, you need to ensure that you, your passengers, and others involved in the incident are safe and without injuries. Once you've done so, move away from your vehicle as far as possible to prevent further injuries and protect yourself from possible explosions.
Contact 911
When you are in a safe location away from the fire, immediately contact 911. They will send the police and the fire department to the scene.
Document the damage
Once authorities have arrived at the scene, take as many photos and videos of the damage to your personal property, including any injuries you may have suffered. In the event there are witnesses to the incident, ask for their contact information. You'll also want to request a copy of the police and fire report, as it's likely your insurance company will request this information.
Confirm you have fire coverage
Once you are safe at home, confirm that you have fire coverage by looking over your policy carefully. For example, if you have comprehensive insurance, specific perils coverage, or all perils coverage, your insurer should pay for repairs. Otherwise, you may be responsible for paying for any fire-related repairs out of pocket.
Contact your insurance company
Next, you'll need to contact your insurance company. Inform them that you would like to file a claim for fire-related damages. The insurance agent will then go ahead and ask a series of questions.
Get repair estimates
Now that your insurance claim has started, your adjuster will ask you to get an estimate for vehicle repairs from an auto body shop. If your personal property was also damaged, you may be asked to submit receipts for these items.
Receive compensation
Once your adjuster has confirmed that they will cover damages, you'll either be compensated directly, so you can pay your auto body shop for the repairs. Or, your insurance company will have you pay for the repairs out of pocket and then reimburse you once the repairs are completed.
Preventing car fires: Hhow to protect yourself and your vehicle
While car fires aren't as common as other insurance claims, they can still be damaging. To prevent and reduce the risk of your vehicle catching on fire, the right precautions can make a world of difference:
Regularly service your vehicle
In the second quarter of 2022, Canadian households spent nearly $3.5 billion on vehicle repairs and maintenance tasks. Routine car maintenance is one of the most effective ways to avoid fires. Ineffective wiring, fluid leaks, overheating, and deteriorating parts can all cause a fire to start. Have a certified mechanic evaluate your vehicle at least once a year to ensure your car remains safe and efficient.
Keep flammable items away from your car
Storing flammable items near your car or in your garage is a recipe for disaster. To prevent a car or garage fire, store gas cans, aerosol cans, lighters, or oily rags in a separate shed away from your home.
Park smart
Whenever possible, park in safe, well-lit places to avoid the risk of arson or theft. Use a garage or secured parking lot if you have the ability to use one, especially at night or in high-risk areas.
Beware of warning signs
Smell something burning? See smoke coming from your engine? Notice leaking fluids when you're parked? Pull over immediately and shut off your vehicle engine. Small problems like oil leaks or exposed wiring can cause substantial problems when left ignored.
What happens if a house fire damages my car?
If a home fire causes damage to your vehicle, you'll need to file a claim to have your vehicle repaired under your car insurance, even though your home insurance covers fire-related damages and other repairs, unless your home insurance plan specifically includes terms that cover damages to your car. If you're unsure which plan to file a claim under, speak with an insurance broker or agent for more information.
If I suffer injuries from an engine fire while driving, will my insurance company cover me?
Yes, your insurance coverage will cover medical bills and other costs relating to your vehicle incident. However, this is typically paid out under the accident benefits portion of your insurance, not your comprehensive policy.
Will my insurance rates increase if I file a claim for fire-related damage?
Most likely, your insurance premium will increase following a claim for fire-related damages. The only exception to this rate increase would be if you're at fault for a car accident that causes fire-related damage to your vehicle. In this case, if you have added accident forgiveness to your plan, you can avoid a rate increase following your first at-fault accident.
How BrokerLink can help
Whether you have questions about fire-related damages to your car, are unsure what insurance you need, or you're up for a renewal, BrokerLink has got you covered.
Our experienced brokers are industry experts with access to numerous types of auto insurance from some of Canada's top providers. We can help you shop around, unlock discounts, and answer your questions or concerns along the way! Other coverages we can help you acquire include:
To work with BrokerLink, contact us directly over the phone or by email to speak with a broker. You can also get a free, competitive insurance quote from the comfort of your own home using our online quote tool!
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