Does Car Insurance Cover Fire Damage?
Yes. Comprehensive and third-party, fire and theft policies both cover fire damage to your vehicle.
Fire is one of the named perils that separates TPFT from basic third-party only cover. If your car is damaged or destroyed by fire, both policy types pay for repairs or a market-value settlement.
UK fire services attended over 26,000 vehicle fires in 2023. Electrical faults are the leading cause, followed by fuel leaks and arson.
Yes, on comprehensive and on third-party fire and theft — fire is the named peril that separates TPFT from basic third-party cover. Where claims come unstuck is cause: arson by a stranger is covered, deliberate damage by the policyholder is not, and a fire traced to a known unrepaired fault can be argued as neglect. Get the fire service attendance logged.
Compare comprehensive car insurance and check your fire cover.
Which policy types cover fire damage?
Fully comprehensive and TPFT both include fire as a standard insured peril. Third-party only does not cover any damage to your own vehicle, including fire.
What is the difference in cover?
Comprehensive covers fire plus accidental damage, theft, and vandalism. TPFT covers fire and theft but not accidental damage.
In practice, both pay the same amount for a fire claim. The difference only matters if the fire was caused by a collision, where comprehensive covers both the crash and the fire damage in a single claim.
Does TPFT cost less than comprehensive?
Not always. TPFT is sometimes more expensive because lower-risk drivers tend to choose comprehensive, which skews the risk pool.
Our car insurance costs guide explains why comparing both options before buying is worth the few extra minutes.
What causes of fire are covered?
Most causes are covered. The main exclusion is deliberate fire-setting by the policyholder, which is fraud.
Which scenarios are covered?
| Fire cause | Covered? | Notes |
| Electrical fault or short circuit | Yes | Leading cause of UK vehicle fires |
| Fuel system leak igniting on hot engine | Yes | Accidental mechanical cause |
| Arson or vandalism by a third party | Yes | Crime reference number required |
| Collision causing fire | Yes | Comprehensive only for crash element |
| Nearby building or wildfire spreading to car | Yes | External fire, no fault of driver |
| Manufacturing defect causing fire | Yes | May also be covered by manufacturer recall |
| Deliberate fire by policyholder | No | Insurance fraud, claim rejected and policy voided |
| Fire while policy has lapsed | No | No valid cover in force at time of loss |
What about electric vehicle battery fires?
Lithium-ion battery fires are covered by comprehensive and TPFT policies in the same way as any other vehicle fire. The cause is irrelevant as long as the fire was not set deliberately.
Battery fires burn at higher temperatures and can reignite hours after the initial fire is extinguished. If your EV catches fire, warn the fire service that it is an electric vehicle so they can use the correct suppression method.
What about the faulty component itself?
If an electrical fault starts the fire, many insurers will not pay for the faulty component. They do pay for all fire damage to the rest of the vehicle.
This means you lose the cost of the failed part but not the cost of repairing or replacing everything the fire destroyed around it.
How much does fire damage cost to repair?
Most fire-damaged vehicles are written off. Fire spreads fast through wiring looms, hoses, and interior trim, and the repair cost usually exceeds the car’s market value.
What are the typical costs?
A small engine bay fire can cost £2,000 to £5,000 to repair if caught quickly. Wiring loom replacements alone cost £1,000 to £3,000 depending on the vehicle.
Once fire reaches the cabin, costs escalate to £5,000 to £15,000 or more. At that point, most insurers declare the vehicle a total loss.
What happens if your car is written off?
Your insurer pays the pre-fire market value minus your policy excess. This is what the car was worth immediately before the fire, not what you paid for it.
If you owe more on finance than the car is worth, gap insurance covers the shortfall. Without it, you could be left paying off a loan on a car that no longer exists.
What should you do if your car catches fire?
The London Fire Brigade advises pulling over immediately, switching off the engine, and getting everyone at least 30 metres away from the vehicle.
What are the immediate safety steps?
Do not open the bonnet. A rush of oxygen can cause a small fire to flash over into a much larger one.
Call 999 if the fire is active. Do not attempt to fight it yourself unless you have a fire extinguisher and the fire is still small and contained.
How do you protect your claim?
Photograph the damage from multiple angles once the fire service confirms it is safe. Note the time, location, and any details about how the fire started.
If arson is suspected, report it to the police on 101 and get a crime reference number. Your insurer will need this before processing the claim.
How does the fire damage claims process work?
Fire claims follow the standard process but take longer because your insurer needs to establish the cause. Allow two to six weeks from report to settlement.
What are the steps?
Report the claim with your policy number, incident details, photographs, and the crime reference number if arson is involved. Your insurer arranges for an engineer to inspect the vehicle.
The engineer determines the cause and extent of the damage. If the cause is accidental, the claim proceeds.
If the cause is suspicious, the insurer may involve a specialist fire investigator. This adds time to the process but does not affect a legitimate claim.
Will a fire claim affect your premium?
Yes. A fire claim reduces your no-claims discount unless you have NCD protection.
Our tips to lower your premium explain how to offset the impact at renewal.
For total-loss claims, expect a premium increase of 15% to 30% at your next renewal. The increase is higher if arson is involved because it signals a higher-risk location.
How can you reduce the risk of a car fire?
The Home Office fire statistics show that electrical faults and fuel leaks cause the majority of accidental vehicle fires. Both are preventable with regular maintenance.
What maintenance matters most?
Service your vehicle on schedule. Worn wiring, cracked hoses, and deteriorating fuel lines are the components most likely to cause a fire.
Act on warning signs immediately. A burning smell, smoke from the engine bay, or flickering electrical instruments all indicate a potential fire risk that should be investigated before driving again.
Does parking location matter?
Yes. Parking in a locked garage reduces both fire and arson risk.
If you park on the street, choose a well-lit area with CCTV where possible. The Association of British Insurers notes that arson accounts for a large share of vehicle fire claims.
Frequently Asked Questions (FAQs)
Yes. Comprehensive insurance covers fire damage from accidental fires, arson, vandalism, collisions, and external fires such as wildfires or building fires spreading to your vehicle.
Yes, because fire cover is built into the policy alongside theft protection. Both accidental fires and arson are covered.
The fire damage to your vehicle is covered, but the faulty component that started the fire may not be. Your insurer pays for the damage the fire caused to the rest of the vehicle.
Fire claims typically take two to six weeks because the insurer needs to investigate the cause. Claims involving suspected arson may take longer due to police involvement.
In most cases, yes. Fire damage spreads quickly through wiring, trim, and structural components, and the repair cost usually exceeds the vehicle’s market value.
Yes, if you have comprehensive or TPFT cover. Report the arson to the police on 101 and obtain a crime reference number before contacting your insurer.