Why did my Ford Escape 01 burst into flames while it was being towed?

The Backround information, my vehicle started to slow down and like couldnt build speed. I was only going 40 and running at about 4000rpm so I pulled into the TA that was just about 200 feet down the street and it turned off as I pulled in. So I let it sit for a few mins turned it back on and parked out of the way in the truck stop. Then I called my insurance company and they sent a tow truck. So we're go about 100 feet and the driver see my car trying to turn, he forgot to lock the steering wheel, so he fixes it and everything is fine for the next 16 miles, and all of a sudden my car bursts into flames. The engine wasn't on but the key was in it as the car was in neutral. The key was partially turned(don't know why he left it that way, prolly to stop the alarm) but that shouldnt make the car burst into flames. We're both fine, we were able to disconnect and get away from the car. Car is totaled.

Added (1). It was automatic, uh two of the wheels were on the ground and it was in neutral with parking break off

2013 Ford Escape vs 2012 Subaru Outback?

I suck at knowing much about cars. I take them in for oil changes, get wheels rotated, etc. Gives you some perspective. I need an AWD vehicle as I recently moved to Park City UT and come froma place where it never snows. I'm looking at either a 2013 Ford Escape w/ EcoBoost and AWD or a 2012 Subaru outback which is 4 cylinder. The escape is 6 cylinder. The subaru has 35k miles, the escape has 45k. The subaru is $20.8k, the Escape is $17k.
Any thoughts on which way I should go with this?

Where to put water in engine? Ford escape hybrid 07?

I'm a girl totally ignorant on car stuff. Where do I put water in the engine of my car? And what else should I check for regularly besides oil changes. I do these myself. Would anyone please label this picture for me?

What is my coverage under the NYS lemon law?

I recently purchased a used car from a dealer recommended from a friend. The dealer and CarFAX claimed that the vehicle passed inspection, but after driving it and hour and a half back home, it ended up stalling. I was planning to take it to my mechanic to get it checked out, but I didn't make it that far before it gave out on me. A mobile repair mechanic ran diagnostics on the vehicle (2004 Ford Escape) and found that the throttle position sensor was busted and a cylinder (4 cylinder vehicle) was misfiring, likely due to bad spark plugs. The dealer never gave me a warranty (as warranted by the NYS lemon law) before or at the time of sale. Is this dealer liable to repair these parts regardless?