According to the National Fire Protection Association, vehicle fire accounts for about 17% of the reported fire incident in the United States. Your basic car insurance may not provide the needed coverage for your car in case of fire damage. It would be best if you had a different range for that. Usually, car fire damage is covered by comprehensive insurance. Read on to find out more about car fire insurance coverage!
What Is a Comprehensive Insurance Coverage Plan?
Comprehensive insurance is a type of car insurance that provides coverage for any kind of car damage – including fire, other than accident/ collision damage. Although this insurance is optional, it comes in handy to protect your car where your typical car insurance fails. Your lender might make it mandatory for you to carry this coverage till the loan is repaid.
How Does Comprehensive Insurance Work for Fire Damage?
Comprehensive insurance works in two ways. If your car gets damaged in a fire, your comprehensive insurance will pay the repair cost if the damage can be repaired. However, in a case where your car is completely damaged, comprehensive insurance will pay the actual cash value of your car, excluding the deductible. To enjoy these benefits, you must be a policyholder and pay your premium regularly.
Comprehensive Coverage Options for Fire Damage
There are four coverage options available for comprehensive insurance to cover different scenarios of a car fire. They include:
Arson is considered a Criminal Act, and it is treated as such by most insurers. If your car is set ablaze by a malicious person, this option of comprehensive insurance will cover the cost.
2. Garage Fire
Shocking as it may be, your homeowners insurance will not cover any damage to your car caused by a garage fire. Homeowners insurance will only cover damage to your garage structure, not your car. But comprehensive insurance has a garage fire option ready to cover the damage.
3. Engine Fire
A faulty engine can be another reason for car fire damage. The risk of fire due to the defective engine cannot be completely avoided but can be covered with comprehensive coverage.
4. Car Crash Fire Damage
There have been situations where a car collision results in a fire. Your collision insurance will only pay for collision damage, but not the fire damage. Comprehensive insurance provides coverage options for car crashes resulting in fire.
Filing a Claim for Car Fire Damage
The process of filing a claim for car fire damage is similar to other car insurance claims. Depending on the situation, the first thing to do is notify your insurance company. However, in a case like a car crash, fire, or arson, you need to inform the police first.
You are required to keep evidence of the disaster and also a copy of the police report. This will help you in the process.
After notifying your insurance company, an adjuster will come in to process your claim and determine your settlement.
Although comprehensive insurance is optional, it is must-have insurance for all car owners. Our team of insurance professionals at Weeks & Associate Insurance in Thousand Oaks, California, are always ready to assist you with the kind of coverage you need. Contact us today to get a quote for your collision coverage plan!