How Is Auto Insurance Different From Fire Insurance?

Auto insurance is not the same as fire insurance. Auto insurance for cars helps in covering the expenses of medical bills, rehabilitation costs, repair costs, claim settlement, and other expenses incurred due to an accident involving the vehicle. However, fire insurance policies serve a different purpose altogether and act only when there is a loss or damage caused by a fire-related incident. Here are some of the differences that you should know between auto and fire insurance policies.

Auto Insurance Overview

Auto insurance protects against financial loss if you're in an accident. It provides benefits for your vehicle and its passengers, as well as other vehicles and people affected by accidents.

The following are some of the types of coverage typically included in auto insurance:

  • Collision coverage: This covers damage to your car caused by an accident with another vehicle or object, such as a tree or guardrail. Collision coverage can also cover theft if it occurs while your car is parked and unattended.
  • Comprehensive coverage: Comprehensive policies cover damage to your car from things other than an accident, such as fire or theft (such as when someone breaks into your car). If you have comprehensive coverage, this will pay for damages whether you were at fault or not.
  • Medical payments coverage/personal injury protection (PIP): Medical payments coverage pays for medical expenses resulting from an injury sustained in a covered collision, while PIP pays no-fault benefits to injured occupants of the policyholder's vehicle regardless of whose fault it was. PIP is required by law in many states but may be optional in others.

These are some of the different types of auto insurance coverages that you might need. 

What is a Fire Insurance Policy?

Fire insurance is a type of insurance policy that protects the property of its owner in the event that it is damaged in a fire. Fire insurance policies cover damage from both accidental fires and malicious fires and can also include other types of damage such as water damage or smoke damage.

Key Features of Auto and Fire Insurance Policies

Auto and fire insurance are two different types of policies that have a lot in common. Both types of insurance policies help protect you against loss in the event of an accident or fire.

Both auto and fire insurance policies have similar coverage options and exclusions. For example, both types of policies will typically pay for damage to your vehicle due to an accident or fire. There are some differences between these two types of coverage. The biggest difference is that auto insurance is required by law, while fire insurance is optional.

While fire insurance can cover the loss caused by fire, it does not cover the medical bills, rehabilitation costs, claim settlement, and other expenses incurred after an accident. It is best to have both auto and fire insurance for your vehicle.

For more information, contact a car insurance agent near you.