Does Your Car Policy Cover Fire Damage – Know Now!

Car fires are not unheard of, and when they happen, the damage can be extensive and expensive to repair. From engine overheating to electrical faults, fire-related incidents can occur unexpectedly. This is where first-party car insurance becomes relevant, as it determines whether you are financially protected against such losses or left paying for repairs yourself.

What Causes Fire Damage in Cars?

Fire damage in vehicles can occur due to multiple reasons. Common internal causes include short circuits, fuel leakage, engine overheating or faulty wiring. External factors such as a nearby fire, arson or explosions in surrounding areas can also damage parked or moving cars. Modern vehicles rely heavily on electrical components, which makes fire-related risks an important consideration for car owners.

Understanding the cause of the fire is essential, as insurers assess this while evaluating claims.

Which Car Insurance Policies Cover Fire Damage?

Fire damage is covered only under comprehensive and standalone first-party car insurance policies. A basic third-party policy does not offer protection for damage to your own vehicle, regardless of the cause. If your car is insured under four-wheeler car insurance with comprehensive coverage, losses caused by accidental fire are generally included, subject to policy terms.

Standalone own-damage cover also protects against fire-related losses, making it a viable option if your third-party policy is already active.

What is Covered  Under Fire Damage Claims?

When fire damage is covered, insurers typically pay for the repair or replacement of damaged vehicle parts. This includes body panels, engine components, wiring and interiors affected by fire. If the damage is severe and repair costs exceed the car’s Insured Declared Value (IDV), the insurer may classify it as a total loss and settle the claim accordingly.

The claim amount depends on depreciation, policy coverage and whether add-ons such as zero depreciation are included.

What is Not Covered Under Fire Damage?

Fire damage caused by negligence is usually excluded. This includes incidents resulting from illegal modifications, poor maintenance or driving against manufacturer guidelines. Claims may also be rejected if the fire occurs while the vehicle is being used for unlawful purposes or if there is evidence of deliberate damage.

Understanding exclusions helps avoid surprises during claim settlement.

How to File a Fire Damage Insurance Claim

• In case of fire damage, inform your insurer immediately.
• File an FIR if required, especially in cases involving explosions or third-party involvement.
• Document the damage with photographs and submit the necessary claim form and policy documents.
• A surveyor will inspect the vehicle before repairs or settlement approval.

Tips to Reduce Fire Risk in Your Car

• Get your car serviced regularly to prevent engine overheating and electrical faults.
• Avoid installing unauthorised or poorly fitted electrical accessories.
• Do not ignore warning signs such as burning smells, smoke or unusual heating.
• Maintain the fuel system properly to prevent leaks or ignition risks.
• Park your vehicle away from fire-prone or high-temperature areas.
• Address minor issues promptly before they escalate into serious fire hazards.

Buy Comprehensive Car Insurance Plans with TATA AIG

Fire damage can lead to heavy financial loss if your car is not adequately insured. With comprehensive or first-party car insurance from TATA AIG, accidental fire damage to your vehicle is covered as per policy terms, helping reduce the financial burden of sudden repairs. The claims process is straightforward and clearly defined, so you know what to expect at every stage.