Does Commercial Auto Insurance Cover Vehicle Fires?

Most business owners buy commercial auto insurance if they own vehicles to use in their operations. After all, if one of these vehicles ever experiences an accident, then this coverage can cover the costs of repairs. a group of men riding on the back of smoke

a group of men riding on the back of smoke

Besides wreck damage, commercial auto insurance can cover a variety of damage from other hazards. For example, one of the scariest and most pervasive forms of damage is the vehicle fire. If you have the appropriate coverage on your policy, then it is likely to pay for the fire damage if it occurs. However, you often must add this coverage to your policy to be able to have the benefit. It will not be automatically included in your coverage.

The Causes of Vehicle Fires

Cars can catch on fire due to a variety of hazards. Of course, following a car wreck, the damage might cause a blaze to ignite. Even a burst tire can spark a fire in the right conditions.

Internal problems might also trigger blazes at any time. Some of the issues that create fire risks include overheated engines, issues in the gas lines and electrical problems.

In cases of both collisions and other fires, the fact remains that both types of incidents are often not preventable or avoidable. Therefore, auto insurance is likely to cover the damage. Most commercial auto policies will pay for fire damage up to the policy’s stated limits.

Getting Coverage for Fire Damage

Most states require auto insurance for all drivers. However, the requirements are usually only for liability insurance. Liability insurance covers third-party losses for which the driver is responsible. Under a basic commercial auto policy, a company’s own vehicle will likely have no coverage for its damage.

So, fire damage will have no coverage unless you add a couple of extra benefits into your policy. These are:

Collision insurance, which pays for vehicle damage resulting from wrecks. If a wreck leads to a fire, this coverage compensates the commercial vehicle owner for their car’s damage.
Comprehensive insurance, which covers vehicle damage that results from hazards other than collisions. So, if your car catches on fire due to an engine problem, this coverage can repay you for your damage.

Your agent will work within the terms of your policy to determine how much the policy will pay you. All collision & comprehensive policies will include policy deductibles. If the fire damage costs less than the cost of your deductible, then your policy will not cover you. Additionally, intentional fires set by the owner will not have coverage.

Don’t forget, if you carry cargo or equipment in your vehicle, you might need to buy inland marine insurance for those items. This coverage comes separately from most commercial auto coverage, and can cover items in transit that experience fire damage.

Does Commercial Auto Insurance Cover Vehicle Fires?

No Comments