REAR "RACETRACK" CENTER TAIL LIGHT BURNED/MELTED CAUSING DAMAGE TO REAR HATCH,LIGHT,PLASTIC TRIM. VEHICLE WAS IN MOTION THROUGH TOWN WITH TWO CHILDREN (AGES 5 & 2) WHEN SMOKE WAS NOTICED IN REAR OF VEHICLE, REAR PLASTIC WAS THEN PULLED/BROKEN OFF TO CHECK THE REAR WHEN THE BURNING/MELTING WAS NOTICED AND WATER POOLING AROUND BOTTOM OF TAIL LIGHT.