What does fire insurance on a vehicle actually cover?

Aug 09 01:08 2019 Print This Article

Q. I was informed by my auto insurer that fire insurance on a vehicle does not cover an engine fire as that is mechanical or electrical. Apparently, it exists in case my car is burned in a forest fire or the neighbour’s house goes up. Does that mean I’m not covered in case of an engine fire or something like that?

–Chuck

A. Vehicle fires happen more often than you might think. Most often, they come from the under-hood area or dashboard, where most of the mechanical and electrical parts are concentrated, and usually require the presence of heat, either from hot engine parts or a short circuit in the electrical system. Leaking fuel or oil can also be contributors. A vehicle fire spreads quickly and, frequently, the vehicle is destroyed before it can be extinguished—in which case the vehicle becomes a write-off and the person insured is compensated for the loss.

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Money Sense

MoneySense is a Canadian personal finance and lifestyle magazine published by Rogers Publishing Limited, a division of Rogers Communications.Written for Canadians who want to take financial control of their lives, MoneySense is Canada's best-selling investment and lifestyle magazine, helping readers make smart, informed decisions about how to get the most from their money. The magazine has received many awards, including multiple National Magazine Awards and CFA Society Toronto Awards.

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