My wife & I purchased our Volvo SUV XC60 in new Condition in May, 2013. Note: We did buy an extended warranty plan At time of purchase.

Currently, there is about 28,000 miles on the SUV. The Volvo SUV is almost always parked in our attached garage.

Last Week, driving home from my doctor, I noticed the coolant warning light. I pulled to the side of the road as quickly as i could. I thought I could get a neighbor to bring coolant to me once the car cooled down. I did not notice the FIRE immediately, but thank the Lord 2 good Samaritans did! And they quickly extinguished the flames. The local Fire Department was called and made sure fire was totally out, before they allowed towing to our local dealership.

Before even Looking at our SUV, The local dealer service guy said "just take the car to body repair". When the car would not start, he said " What did you Hit!" He never even looked inside the car.

My wife and I checked our garage
Floor today. No coolant, oil or any liquid has been leaking from this car.

I did NOT hit anything! Nor was I ever driving behind a truck filled of debris, Which perhaps could have dropped Rocks or whatever.

I did pull my service records and noticed engine oil pan gasket (977751-7) was replaced in June 2016 (24,000 miles) and again at the June 2015 (18,000 mile service). This doesn't seem normal to me, but I am not a Volvo expert mechanic

The insurance company has looked at the SUV, and basically wants to pay high blue book based on the way we maintained the car. But that is not near the cost of replacement value

Doesn't Volvo have an obligation here?
We have an extended warranty. Aren't they under obligation to fix the car or at very minimum figure out what caused the fire?
Help? Where do we go from here?