What happens when your car starts smoking and catches on fire?

This would be covered by the Comprehensive part of your policy. It usually requires the same deductible as collision coverage, but may be a different amount. Expect the insurance adjustor to be rather suspicious in the case of a fire. For instance, if you have been trying to sell the vehicle for several weeks then one night it goes up in flames, he is going to be wondering if you torched it yourself.