As a general rule, nobody thinks that their vehicle could go up in flames, but it is a more common circumstance than you might think, which is why including fire cover in your car insurance is something to take into account.
Most commonly, this situation is caused by a breakdown, natural circumstances or vandalism, three cases from which no driver is exempt. That’s why today we tell you everything you need to know about Hello Auto’s vehicle fire cover and why it’s a very good thing to add to your car insurance at any time.
What does insurance cover in the event of a vehicle fire?
Knowing what type of vehicle fire cover your car insurance includes, as well as whether it is available, is vital in order to know what to expect in the event of such an incident. In this case, it will be vital to contact the insurer as soon as possible to start the necessary procedures as soon as possible.
Of course, this cover must be contracted before the incident occurs, and in the case of Hello Auto, the insurances that offer this type of cover are the extended third party insurance and the comprehensive insurance with excess.
If a car fire cover has been taken out with Hello Auto insurance, the company will cover the main expenses involved in extinguishing the fire as well as the management and transfer of the vehicle to a safe area where it can be inspected, as well as its removal.
In addition, the insurer will send an expert to determine the state of the vehicle after the fire has been extinguished. After this analysis it will be decided if the car should be repaired or if it should be declared a total loss.
Of course, having suffered a fire is considered exceptional and does not invalidate the insurance fire cover in the future.
What is excluded under this cover?
Although in principle the fire cover of your Hello Auto car insurance covers the damage caused by fire whether it has occurred inside or outside the vehicle, there are certain exclusions that could invalidate this protection.
A good example of this would be arson. In the event that the car’s appraisal determines that the fire was caused by arson without being an act of vandalism beyond the owner’s control, the car insurance will not cover the costs.
In addition, it is possible that if the vehicle was carrying fuel, even if this was not the reason for the fire, the case may also constitute an exclusion from the car insurance fire cover. For example, if the reason for the fire was vandalism, the car fire insurance may not cover if there was a petrol can inside the vehicle.
Another example of exclusions in fire cover, as with home insurance, can be found in extra accessories. In order for the insurance to cover any type of material loss, it will be necessary to have previously insured it.
How is fire cover calculated?
When it comes to calculating compensation for a car on fire, the main parameter to take into account is the age of the vehicle. In other words, the length of time since the car left the dealership will determine its value and, therefore, the extent of the compensation to be received for the car fire insurance.
- Hello Auto will pay the full cost of the vehicle if less than one year has passed since it was registered.
- If it was in the second year, this amount will be reduced by 1% for each month that has elapsed since registration.
- From the third year onwards, the compensation in case of total loss amounts to the value of the vehicle on the second-hand market plus an extra 15%.
In other words, the owner of a new car that has been burnt in an accident, or parked in the street because a nearby rubbish bin has been burnt, to cite two very different circumstances, will be able to recover all or at least a large part of what the car cost him a few months earlier. This will allow you to afford the purchase of a new vehicle or at least one with similar characteristics.
However, as the car is on the road for a few months, it will lose value for the fire cover, just as it will lose value in the market. In the end, calculating the fire cover of a car insurance policy by looking at the time elapsed since registration is the fairest way to do it for all parties, as the owner of the damaged vehicle will always receive a higher amount than if he had decided to sell his car only a few minutes before the fire.