Does Car Insurance Cover Fire Damage UK 2026

Last reviewed: 26 April 2026

What fire cover includes in TPFT and Comprehensive

Fire damage cover for the insured vehicle is one of the two key additions that Third Party Fire and Theft (TPFT) policies provide above the Third Party Only (TPO) minimum. All standard TPFT and Comprehensive policies cover fire damage to the insured vehicle regardless of the fire's cause, provided the fire is an external or accidental event rather than deliberately set by the policyholder.

Electrical fault fires: The most common vehicle fire cause in the UK. An electrical short circuit, from damaged wiring, a faulty alternator, or a failing battery management system, that ignites vehicle materials is covered as a fire event under TPFT and Comprehensive policies.

Arson: Where a third party deliberately sets fire to the vehicle, the fire event is covered. A crime reference number is required from the police to proceed with an arson claim, the policyholder must report the arson to the police via 101 or online and obtain a crime reference number before the insurer will process the claim.

Accidental fire from an external source: A fire spreading to the vehicle from an adjacent property, vehicle, or source is covered as an external fire event.

Fire following a collision: Where a collision causes fuel leakage and subsequent fire, the fire damage is covered under the accidental damage provision (Comprehensive) alongside the collision damage.

What is excluded: deliberate policyholder-set fires

The universal exclusion from fire cover is deliberate fire-setting by or on behalf of the policyholder. A policyholder who sets their own vehicle on fire, or arranges for it to be set, to claim the vehicle's market value is committing insurance fraud under the Fraud Act 2006. This is not a fire cover exclusion in the CIDRA 2012 material non-disclosure sense, it is a straightforward exclusion of deliberately self-inflicted loss.

UK insurers investigate vehicle fire claims for signs of deliberate fire-setting. Signs of accelerant use, fires that start in unusual locations within the vehicle (boot rather than engine bay), and fires that occur in circumstances convenient for the policyholder are red flags investigated by specialist claims handlers and forensic fire investigators. CIFAS records confirmed insurance fraud events including fire fraud.

Engine fires from mechanical failure: the ambiguous zone

Engine fires that originate from mechanical failure, an oil leak from a failed seal onto a hot exhaust, causing ignition; or an overheated engine causing a under-bonnet fire, present an interpretive challenge in policy terms.

Some UK Comprehensive and TPFT policies treat any fire damage to the vehicle as covered under the fire provision regardless of whether the fire originated from a mechanical failure. On this interpretation, even a fire that originated from a mechanical event is a fire claim.

Other policies apply the mechanical exclusion to fires originating from the vehicle's own mechanical failure, treating the fire as a consequence of the mechanical event rather than an independent fire peril.

Check the specific policy wording for this scenario. The IPID will typically summarise the fire cover scope. Where the policy wording is ambiguous, a written query to the insurer before a claim situation is the most reliable way to establish the insurer's position.

ABI vehicle fire data

The ABI's 2025 motor insurance market data includes vehicle fire claim statistics as part of the broader Comprehensive and TPFT claims dataset. Vehicle fires, including electrical fires, arson, and accidental fires, represent a small but meaningful proportion of total Comprehensive claims. The ABI data supports the fire cover as a valuable standard inclusion for vehicles in environments where electrical fires (particularly older vehicles with aged wiring) or arson risk (urban high-crime areas) are elevated.

Key Figures

Vehicle fire and the MIB / Motor Insurance Database interaction

When a vehicle is damaged by fire and a claim is made, the insurer updates the Claims and Underwriting Exchange (CUE) database with the fire claim record. The claim history persists for five years, affecting future policy applications and renewals in the same way as other claim types.

Where the fire results in a total loss, the insurer notifies the Motor Insurance Database (MID) that the vehicle is being written off. The V5C is returned to DVLA and the vehicle's registration is marked as a destroyed or scrapped vehicle on the DVLA register. Any subsequent attempt to register an identical vehicle registration for insurance would be identified through MID and DVLA cross-referencing.

For arson cases where police investigate and a crime reference number is issued, DVLA's own stolen vehicle register is cross-referenced against MID. The ABI and MIB share vehicle fire fraud data with police forces to identify patterns of serial fire fraud. Policyholders with a legitimate fire claim should retain all evidence, fire service reports, police crime reference (for arson), CCTV evidence, and contemporaneous photographs, to support the claim and establish the genuine circumstances of the fire.

Vehicle fire and EV-specific considerations

Electric vehicle battery fires present a specific challenge for standard fire damage claims. EV battery fires from a thermal runaway event, an internal battery fault causing uncontrolled heat and fire, are generally treated as covered fire events under Comprehensive and TPFT policies, as the fire is an insured peril regardless of its cause within the vehicle.

However, EV battery fires are significantly more difficult to extinguish than standard vehicle fires, require specialist fire service equipment, and may reignite after apparent extinguishment. The total-loss settlement for an EV following a battery fire must account for the high battery replacement cost, a major factor in the elevated insurance groups for large-battery EVs.

Some specialist EV insurers include agreed-value provisions that lock in the vehicle's value at policy inception rather than assessing market value at total-loss date, particularly relevant for high-value EVs that depreciate rapidly and where the settled market value at the time of loss may be substantially below the purchase price. BIBA-registered specialist brokers (biba.org.uk/find-insurance/) can identify specialist EV Comprehensive products with agreed-value provisions.

Frequently Asked Questions

Does car insurance cover fire damage?

TPFT and Comprehensive policies cover fire damage to the insured vehicle regardless of cause, provided the fire is not deliberately set by the policyholder. Third Party Only policies do not include fire cover for the insured vehicle.

Does Comprehensive insurance cover arson?

Yes. Arson by a third party is a covered fire event under TPFT and Comprehensive. A police crime reference number is required to proceed with the claim.

Is engine fire covered by car insurance?

It depends on the fire's origin. Engine fires from external causes or fire spreading to the engine bay are covered. Engine fires originating from the vehicle's own mechanical failure (oil leak ignition, overheated engine) sit in an ambiguous zone, check the specific policy wording or query the insurer directly.

Does the type of fire coverage differ between TPFT and Comprehensive?

The fire cover in TPFT and Comprehensive is broadly equivalent for the insured vehicle. Comprehensive adds accidental damage coverage (which TPFT does not provide), and some fire events may be characterised as accidental damage under Comprehensive where they would be assessed differently under TPFT.

Do I need to report a vehicle fire to the police?

For arson claims, yes, a crime reference number is mandatory. For accidental electrical fires or fires not involving a criminal act, a police report is not typically required, but emergency services attendance (fire brigade) provides documentation of the event that supports the claim.

Sources & Verification

• ABI Motor Insurance data: https://www.abi.org.uk
• Fraud Act 2006: https://www.legislation.gov.uk/ukpga/2006/35
• FCA ICOBS: https://www.fca.org.uk
• Road Traffic Act 1988, section 143: https://www.legislation.gov.uk/ukpga/1988/52
• HMRC Insurance Premium Tax: https://www.gov.uk/guidance/insurance-premium-tax
• BIBA, Find a specialist broker: https://www.biba.org.uk/find-insurance/
• gov.uk, Driving without insurance: https://www.gov.uk/vehicle-insurance/penalty-for-driving-without-insurance

This article is for informational purposes only and does not constitute financial advice. Always verify rates with official sources before making any financial decision.