Will insurance cover my car if it catches fire?

8 minute read Published on Jul 3, 2025 by BrokerLink Communications

So your car caught on fire...what now? Will your insurance cover fire damage to your vehicle? Stick around to learn how you can navigate the aftermath if your vehicle catches fire.

Common causes of car fire damage

Did you know that experiencing a vehicle fire is more common than you think? There are numerous ways fire damage to a vehicle can occur, including the following:

Car accident

One of the most obvious causes of a car fire is being involved in a car accident. When a fire starts following a collision, it's typically because there is a presence of heat and an exposure of fuel, which can cause an engine fire to occur.

Mechanical breakdown

Another common cause of a vehicle fire is a mechanical breakdown. Whether it be a fuel leak, a malfunction or overheating of the engine, there are numerous potential fire hazards housed within the engine itself that can lead to a fire being started.

Electrical malfunction

Further, whether it be a short circuit or faulty electrical work, electrical fires within vehicles can spread quickly and cause substantial damage to your vehicle.

House fire

Of course, a house fire caused by natural disasters or an accident within your home can not only lead to property damage, but also fire damage to your car as well.

Theft or vandalism

Lastly, if your vehicle has been stolen or vandalized, the perpetrator may start a car fire to hide evidence or cover their tracks.

Will my insurance company cover my vehicle for fire damage?

Generally speaking, yes, your insurance will cover you for repair, replacement, or a write off if your car caught fire. But, it will depend on the type of coverage you have and how the fire starts. Here's what you need to know:

What insurance policy specifically covers a vehicle fire?

There are three insurance policies that will cover fire damage to your vehicle. The first is liability coverage. Let's say you get in a car accident with an at-fault driver who not only injures you but also starts a car fire. In this scenario, you can file an insurance claim for damages to your property along with medical expenses and other associated settlement costs.

The next policy that helps pay for fire damage is comprehensive coverage. Comprehensive coverage is an optional insurance policy that will offer repair coverage or replacements if your car is damaged as a result of a non-collision event. So, let's say your car fire started due to natural disasters or a result of car theft. In both cases, your car fire will be covered.

Lastly, collision coverage will also cover a car fire. But, keep in mind this is optional insurance, so you would have had to add it to your overall plan to receive compensation. Collision coverage will cover repair work or a car replacement if the vehicle catches fire as a result of a car accident you are responsible for.

When will a car fire not be covered?

While fire damage is typically covered by your insurance company, there are scenarios where your claim may be denied. For example, if you intentionally caused damage to your vehicle in an attempt to cause insurance fraud and are caught, not only would your claim be denied, but you could also face criminal charges. Remember, insurance companies diligently investigate insurance claims and specifically look for instances where fraud could be present. It's imperative that you remain truthful about the circumstances that started the fire in order to be compensated.

Another instance where your provider may not cover damages is if the damages result from a serious crime that you participated in. For example, if you were conducting criminal activities while driving your car, which then led to a collision, your provider could also deny your claim if there was enough evidence to prove criminal activity occurred.

Lastly, if you do not have the right coverage in place, specifically comprehensive and collision, you may also not be covered for your damages. For example, if you cause an accident that leads to an engine fire that damages your car, you will not be able to file a claim for repairs, given that collision coverage is an optional insurance plan.

What should I do if my car catches fire?

So, what should you do once your car catches fire? To ensure you navigate the aftermath, here's what you need to do:

  1. Contact the fire department and police. In this scenario, you'll need to get a copy of the police report, as it can provide valuable information to your adjuster handling your claim.
  2. If possible, take as many videos and photos of the incident as possible. The more evidence you have about what happened, the easier it will be for you during the claim process.
  3. Once you're home, you'll need to contact your insurer. When opening a claim, an insurance agent will ask you a series of questions about what happened, whether there were any injuries involved, and more. It's important to be truthful and as detailed as possible during this time.
  4. After you get off the phone with an agent, you'll likely need to wait a couple of days for a claim confirmation email that contains your claim number and the name of your adjuster.
  5. At a later date, your adjuster will contact you and handle the claim from there on out. They'll ask you questions, ask for evidence and other documents, and more.
  6. Once your insurer processes your insurance claim, you'll be covered for your losses, injuries, and other damages, up to your policy limits. Note that depending on what insurance policy you file your claim under, you may need to pay a deductible to your insurer first, before they will cover the remaining expenses.

If you have questions regarding the claim process, we suggest reaching out to your insurance provider directly or an insurance broker for more information.

Ensure you have the right car insurance in place

In Canada, all motorists must have valid car insurance to operate a motor vehicle on public roads. However, the types of auto insurance and the minimum coverage required will vary depending on which province or territory they live in. Beyond standard auto insurance, additional policies are also available to give drivers added peace of mind while they're behind the wheel. Take a closer look at some of the coverage options available to you and your own vehicle:

Mandatory auto insurance (varies by province)

The coverage provided by this insurance includes the following mandatory components:

Optional car insurance (varies by province)

You may also choose from the following coverage options:

What is full car insurance coverage?

Full coverage insurance refers to the additional insurance policies motorists add to their standard insurance plans. More specifically, full coverage would include policies like comprehensive insurance, collision insurance, accident forgiveness, and other optional coverages that are not automatically included or mandated by provincial traffic laws.

Does car insurance cover engine replacement?

Whether or not your insurance coverage will cover things like an engine replacement due to a bad transmission will depend on the type of policies you have and the circumstances that lead to the damage itself.

For example, if you were involved in a car accident that caused significant damage to the vehicle engine, you can claim repairs, replacements, or a total loss, if you have collision insurance added to your standard plan. Another example where an engine replacement may be covered by your provider is if the damage caused resulted from a non-collision peril that is specifically listed in comprehensive car insurance.

For more clarification, take a look at the terms and conditions of your current policy or reach out to your insurance provider for assistance.

Will my insurance company pay for a rental car during repairs?

Whether or not your insurance covers a rental during repairs will depend on whether you chose to add this specific endorsement to your standard coverage at the time you purchased or renewed your coverage with your insurance company. The rental policy you're referring to provides a free rental car during the period your vehicle is in the repair shop following a collision. Typically, the rental is covered by your insurance company until your insurance claim has been settled, and your vehicle is returned to you.

If you are unsure whether you have this optional endorsement, we recommend carefully reading your car insurance policy for more details. If you're still unsure, it may be worth contacting your provider or a broker for assistance.

What should I do if my car breaks down?

If your car broke down and now your car won't start, you may be in a bit of a panic. What do you do? Who do you call? Do you stay in your vehicle or wait outside of it?

One of the most important things you can do is not panic--we know, quite predictable. Panicking will only make things worse by clouding your judgment, which could lead to other problems. If by chance you can move your vehicle to the side of the road and out of the direct path of traffic, do so immediately.

Once you are in a safe location, remain in your car rather than exiting your vehicle. Next, turn on your hazard lights to inform other motorists that you're experiencing a problem with your car. Finally, you'll need to call a tow truck for help. If you have roadside assistance added to your insurance policy, you can go ahead and give them a call for help.

How can I keep my car in good shape throughout the year and prevent damage?

Scheduled car maintenance throughout the year is essential if you want to keep your vehicle in good shape, no matter what season it is. This starts with finding an auto mechanic in your area you can trust to provide reliable services at an affordable cost.

If you feel comfortable performing maintenance jobs on your own, take a look at some of BrokerLink's maintenance checklists and guides below:

How long does a car battery last before needing a replacement?

So, how long does a car battery last before needing to be replaced? On average, a car battery lasts three years. That said, this lifespan can vary significantly depending on how often you use your vehicle. Of course, we should mention that the car battery in an electric vehicle has a much longer service life of around 100,000 kilometres before needing to be replaced.

How much does car maintenance cost per year?

Car maintenance costs per year can vary significantly based on the type of vehicle you drive, where you live, and how often you operate it. So, while we can't give you an exact estimate on how much you'll spend annually on maintaining your vehicle, you'll likely spend anywhere between a couple hundred dollars to $1000. Again, this will vary between car owners, especially if one vehicle has been properly serviced and received regular maintenance throughout its lifespan while the other hasn't been.

How BrokerLink can help

At BrokerLink, our brokers have access to multiple auto insurance policies from some of the top providers in Canada. Whether you need help purchasing insurance coverage, have questions about your current policies, preventative auto insurance, or the claims process following a car fire, or have other inquiries about the coverage options available to you, know that BrokerLink has your back every step of the way.

Get an auto insurance quote 1-866-724-2372