What Types Of Insurance Policies Cover Fire Damage?
The type of car insurance policy you hold could determine if and how you are protected in the event of fire damage. Generally, there are three main types of car insurance in the UK: third-party, third-party fire and theft, and fully comprehensive. Each provides different levels of cover.
Here’s a breakdown of the main types of policies and what they typically cover regarding fire damage:
- Third-party insurance: The most basic form of cover, third-party insurance only may protect you against damage you cause to other people and their property. It does not cover fire damage to your own car.
- Third-party, fire and theft: This policy adds protection against fire damage and theft to the basic third-party cover. If your vehicle is damaged by fire-whether accidental or owing to vandalism-you’re typically covered under this policy.
- Comprehensive insurance: A fully comprehensive policy offers the highest level of protection, covering you for fire damage, theft, and damage to your own vehicle, even if the fire was accidental or caused by an internal fault.
If you’re concerned about fire damage, a comprehensive policy or third-party, fire and theft cover may provide the peace of mind you need.
What Causes Of Fire Damage Are Typically Covered?
Fire damage to your car can occur for several reasons, and whether or not you're covered depends on the cause of the fire and your insurance policy. Whilst some causes are generally covered by most policies, others may require additional protection.
Here are some common causes of fire damage that are usually covered by insurance:
- Accidental fires: If your car is damaged by an accidental fire, such as an engine overheating or electrical fault, a comprehensive or third-party, fire and theft policy might typically cover the repairs or replacement.
- Vandalism and arson: If your vehicle is set on fire intentionally, as in the case of arson or vandalism, comprehensive and third-party, fire and theft policies generally cover the damage.
- External fires: Your car may be damaged by a fire that started externally, such as a fire in a nearby building or another vehicle. In most cases, your insurance could cover this type of fire damage under the right policy.
However, if the fire is caused by your own negligence or illegal activity, it’s unlikely that your insurer might cover the damage. Always check the exclusions in your policy to understand the specific circumstances under which fire damage is covered.
How Do You File A Claim For Fire Damage?
If your car has been damaged by fire, filing a claim with your insurer is the next step to recovering the cost of repairs or replacement. The claims process can vary slightly between insurers, but generally, it involves the following steps:
- Contact your insurer: Notify your insurance company as soon as possible after the incident. Provide details about the fire, including the time, location, and any other relevant information. If the fire was caused by vandalism or arson, you'll need to provide a police report.
- Submit supporting documentation: Your insurer could likely ask for photos of the damage, repair estimates, and any other evidence that helps support your claim. Keep all receipts and records of any repairs or assessments.
- Get the car inspected: An insurance adjuster may be sent to inspect the car and determine the extent of the damage. Based on their assessment, your insurer may decide whether the car is repairable or a total loss.
- Receive payment or repair authorisation: If your claim is approved, your insurer may either pay for the cost of repairs or compensate you for the vehicle’s market value if it’s considered a write-off.
It’s regularly a good suggestion to follow your insurer’s claims procedure closely to avoid delays or complications. The quicker you act, the sooner you can get your car repaired or replaced.
What Happens If Your Car Is Written Off Due To Fire Damage?
In cases where the fire damage is so severe that the cost of repairs exceeds the value of the car, your insurer may declare the vehicle a write-off. When this happens, your insurer could compensate you for the market value of your car at the time of the fire.
Here’s how the process works:
- Assessment: An insurance assessor may evaluate the damage to your car. If they determine that the car is beyond repair or the cost of repairs is higher than the car’s worth, it may be declared a total loss.
- Settlement: Your insurer might offer a payout based on the car’s market value at the time of the fire. Keep in mind that this amount may be less than what you originally paid for the car, as depreciation is factored in.
- Car ownership: Once your insurer has paid the settlement, the car might usually be taken by the insurer or a salvage company. In some cases, you may be able to buy the car back if you wish to repair it privately, though this depends on the terms of your policy.
If your car is written off, it’s often worth considering to review the settlement offer carefully and ensure it reflects the true market value of your vehicle. You can negotiate with your insurer if you believe the offer is too low.
Does Fire Damage Affect Your No-Claims Bonus?
If you make a claim for fire damage, it may affect your no-claims bonus (NCB) depending on the terms of your policy and the circumstances surrounding the claim. Generally, if the fire was caused by an external factor or was deemed unavoidable, you may be able to keep your no-claims bonus intact, especially if you have no-claims discount protection.
Here’s what to expect:
- Without protection: If you do not have no-claims bonus protection, making a claim for fire damage is likely to reduce or invalidate your NCB, leading to higher premiums at renewal.
- With protection: If you’ve added no-claims bonus protection to your policy, you may be able to make one or more claims without affecting your discount. Check the terms of your policy to see how many claims you’re allowed before your NCB is affected.
It’s always worth considering NCB protection, especially if you’re worried about unexpected incidents like fire damage that could lead to costly claims.
Can You Prevent Fire Damage To Your Car?
Whilst some causes of fire damage, such as arson, are outside of your control, there are steps you can take to reduce the risk of accidental fires. Regular maintenance and safe storage practices can help prevent common fire hazards and protect your car from potential damage.
Here are some tips to help prevent fire damage:
- Regular maintenance: Have your car serviced regularly to ensure the engine, electrical systems, and fuel lines are in good condition. Faulty wiring or leaking fuel can increase the risk of a fire.
- Check for recalls: Stay informed about any manufacturer recalls related to fire hazards. If your car is subject to a recall, take it to a dealer for repairs as soon as possible.
- Safe storage: If you park your car in a garage or near flammable materials, ensure the area is free from hazards such as exposed fuel, chemicals, or faulty wiring.
By taking these precautions, you can minimise the risk of fire and ensure your car remains safe and roadworthy.
Looking for car insurance that covers fire damage? Compare quotes today to target a policy that offers the protection you need for your vehicle.
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