If your car suffers an electrical fire, it can be a terrifying and costly experience. The first thought many drivers have is about safety, followed quickly by the financial question: Does my car insurance cover this type of damage? The answer is yes, car insurance can cover electrical fires, but only if you have comprehensive coverage. Liability insurance, which is the minimum required in most U.S. states, does not protect your own car from fire damage. Collision coverage also won’t help because it only applies when your car is damaged in a crash.
Comprehensive coverage is what protects your vehicle against non-collision risks such as fire, theft, vandalism, falling objects, and natural disasters. According to the U.S. Fire Administration, there are more than 170,000 reported vehicle fires every year in the United States, with many caused by electrical malfunctions. These fires often start suddenly and can cause repairs that range from $2,000 to more than $15,000, depending on the severity.
This guide will explain in detail how insurance treats electrical fires, what coverage applies, common causes of electrical fires, the claim process, costs, state-specific rules, and how to prevent fires before they happen. We’ll also answer popular questions drivers search for and share related resources that can help you make better insurance decisions.
What Counts as an Electrical Fire in a Car?
An electrical fire occurs when the electrical system inside your vehicle sparks, overheats, or malfunctions and ignites a flame. Unlike an engine fire caused by fuel leaks or overheating, electrical fires often start quietly and spread quickly.
Common indicators of electrical fire risk:
- Burning smell or melting plastic odor inside the car
- Fuses that repeatedly blow
- Smoke from under the hood or dashboard
- Flickering or failing headlights and electronics
- Battery overheating or leaking fluid
Key sources of electrical fires:
- Battery problems: Overcharging, corroded cables, or leaking acid.
- Wiring harness issues: Frayed, old, or improperly installed wires.
- Aftermarket electronics: Non-professional installation of radios, amplifiers, or LED lights.
- Alternator overload: Faulty alternators that cause excessive current flow.
- Manufacturing defects: Some cars are recalled due to faulty wiring that increases fire risks.
Does Car Insurance Cover Electrical Fires?
Yes, but only with the right type of policy.
Liability Insurance
- Required in most states.
- Only pays for injuries and property damage you cause to others.
- Does not cover electrical fires or any damage to your own car.
Collision Insurance
- Pays for damage caused by car accidents.
- Does not apply to fires, whether electrical or engine-related.
Comprehensive Insurance
- Covers non-collision damages, including fire, theft, vandalism, hail, and flooding.
- Specifically includes electrical fires, regardless of whether your car is parked or being driven.
- Deductible applies before your insurer pays.
Bottom line: If you want protection from electrical fires, you must carry comprehensive coverage.
Cost of Repairing Electrical Fire Damage
Repairing a fire-damaged car is often expensive because electrical systems are connected to the engine, dashboard, and multiple sensors.
| Type of Damage | Repair Example | Cost Range |
| Minor | Replace fuses, small wiring fixes | $500 – $2,000 |
| Moderate | Dashboard wiring, alternator replacement | $3,000 – $7,000 |
| Severe | Engine wiring harness, ECU replacement | $8,000 – $15,000 |
| Total Loss | Car declared totaled by insurer | Actual cash value of vehicle |
Without comprehensive coverage, you would pay these amounts out of pocket.
How to File a Claim for an Electrical Fire
When your car suffers an electrical fire, follow these steps:
- Stay Safe – Call emergency services if flames are present. Do not attempt to drive the vehicle.
- Document Everything – Take clear photos of the damaged areas, the fire scene, and any warning signs like blown fuses or battery issues.
- Contact Your Insurer – Notify your insurance company immediately. Be clear that the fire was electrical.
- Get a Mechanic’s Report – Insurers often require certified inspection to confirm cause.
- Provide Estimates – A repair shop or dealer will submit cost breakdowns.
- Investigation – Your insurer may check whether aftermarket parts or negligence contributed to the fire.
- Settlement – If approved, the insurer pays for repairs or the market value if the car is totaled.
Factors That Affect Coverage Approval
Insurance companies consider:
- Type of Policy: Only comprehensive applies.
- Deductible: A higher deductible lowers payout.
- Car’s Value: If repair costs exceed value, car is totaled.
- Cause of Fire: Coverage may be denied if improper DIY wiring caused the issue.
- State Laws: States regulate how quickly insurers must handle fire claims.
State-by-State Considerations
Each state has its own rules for insurance claims. For example:
- California: Strict consumer protections require insurers to settle fire claims promptly.
- Florida: Comprehensive coverage is optional, but strongly recommended due to high vehicle fire rates from heat and humidity.
- Texas: Policies typically cover electrical fires, but insurers may deny claims if aftermarket wiring is unlicensed.
- New York: Insurers are required to provide full details of claim denials in writing for fire damage.
Examples of Insurers Covering Electrical Fires
Most major insurers handle electrical fire claims under comprehensive coverage:
- State Farm: Covers electrical fires, but may deny if fire results from illegal modifications.
- GEICO: Includes electrical fires under comprehensive but requires inspection.
- Progressive: Pays for both repairs and towing related to electrical fires.
- Allstate: Covers manufacturer-related fire issues, sometimes with subrogation against automakers.
How to Prevent Electrical Fires in Cars
Prevention helps avoid dangerous fires and costly claims.
Maintenance Tips:
- Inspect your battery every 6–12 months.
- Replace old or frayed wiring immediately.
- Use only recommended fuses and relays.
- Avoid overloading your car with aftermarket electronics.
- Respond quickly to recall notices from your manufacturer.
Driving Habits:
- Watch for dashboard warning lights.
- Don’t ignore burning smells or smoke.
- Have regular mechanic inspections if your car is over 8 years old.
Pros and Cons of Using Insurance for Electrical Fire Claims
| Pros | Cons |
| Saves you from paying thousands in repairs | May increase premiums after a claim |
| Covers total loss if the car is beyond repair | Deductible reduces payout |
| Provides peace of mind | Claim investigations may delay settlement |
| Protection against unexpected electrical malfunctions | Coverage only available with comprehensive insurance |
FAQs
Yes. Full coverage includes comprehensive, which protects against electrical fires.
Yes. If improper installation of aftermarket equipment led to the fire, the insurer may deny the claim.
Yes. The insurer pays the actual cash value (ACV) of your car if it’s beyond repair.
Most likely, yes. Fire claims are treated as risk factors by insurers.
No. Vehicle fires are only covered under auto insurance policies.
Conclusion
Electrical fires in cars are unexpected, dangerous, and costly. Thankfully, comprehensive insurance provides the protection you need. Without it, you could face thousands of dollars in repair bills or lose your vehicle completely. Since electrical issues can happen in any car new or old it’s smart to add comprehensive coverage to your policy.
At Alias Insurance, we help drivers across the USA compare comprehensive coverage options from trusted providers. Getting a free quote ensures you protect your car against risks like electrical fires while keeping your premium affordable.
