The Department of Transport says that one in five new cars sold in May 2025 was electric, with the UK leading Europe in EV sales. As of the end of June 2025, there were over 1,550,000 fully electric cars in the UK, representing around 4.6% of c.34 million cars in the UK.
By 2030, it’s estimated that between 8 and 11 million electric and hybrid vehicles will be on the UK’s roads, an 8-fold increase on current levels.
The UK Government’s established regulations and targets state that from 2035, all new cars and vans sold in Great Britain will need to be zero-emission at the tailpipe, and the sale of new petrol and diesel cars will be prohibited.
The government has invested over £2 billion to support this transition, including expanding charging infrastructure and incentivising zero-emission vehicles.
Common causes of EV fires
Lithium-ion batteries
HIGHLIGHTED RISK
Recent data indicates a significant increase in lithium-ion battery fires in the UK, with EVs and e-bikes being key contributors. Overcharging, extreme ambient temperatures and physical damage are all potential root causes for a lithium-ion battery to enter a chemical reaction process known as thermal runaway and cause a fire.
While EVs are generally less prone to fires than traditional petrol vehicles, once ignited, there are multiple and potentially severe problems:
‘The reserve for the ‘at fault’ insurer would be many millions of pounds’ This would be a reinsurance event, covering both the vehicle damage and the damage to the highway and infrastructure. The claim from the Highways Agency/local authority would be significant and would require careful investigation and scrutiny. ‘Liability may not necessarily be clear-cut, and negligence must be proven.’ If it’s identified that a manufacturing defect or fault was the cause, liability could ultimately land at the vehicle manufacturer’s feet. A significant PR exercise would be required by the insurer of the ‘at fault’ vehicle as the general public would automatically expect them to cover the costs. Larger motor insurers are likely to have more than one vehicle in the incident on cover, and a joined-up approach from all insurers involved would help mitigate litigation risks and keep costs under relative control. ‘There could be potential for considerable litigation’ Injury is an uninsured loss, and some ULR law firms will likely be aggressive in pursuing litigation. ‘EVs need to develop significantly from a safety perspective’ There is an urgent need for in-car monitoring systems that detect EV batteries overheating and facilitate immediate shutdown of the battery and all electrical systems in the vehicle. It’s often the electronics controlling the battery that fail. Making these components, including the battery, more accessible means easier maintenance and increases the probability of spotting a problem. ‘Regulation is years behind the fire risks that EVs present.’ Car parks, for example, should have dedicated parking spaces for EVs, with enhanced fire detection, suppression and containment systems, including the ability to suppress and contain toxic gases. These measures come at a cost, but that’s nothing compared to the potential price of fire damage. Most car parks lack adequate entry and exit points for emergency services, particularly for fire brigade vehicles. Therefore, EV chargers need to be strategically placed, away from underground car parks and building entrances. Covered and non-covered parking areas and existing infrastructures (e.g. building structures and any sprinkler systems) have not been designed or built to withstand rapidly spreading, very high-temperature fires. Retrospective alterations would be almost impossible or exorbitantly expensive. ‘Will insurers incentivise EV owners to complete online safety awareness training?’ The case law on liability is likely to develop significantly as we see more and more EVs on the road. For example, could a car park operator be apportioned liability if they didn’t ensure adequate vehicle spacing or fire prevention measures? Insurers will undoubtedly have a part to play in educating EV owners of the risks – such as reminding policyholders to check and maintain charging equipment regularly. Will policyholders be required to complete simple online safety awareness training in return for a premium discount or reduced excess?
London Fire Brigade has described lithium-ion battery fires as the capital’s “fastest emerging and growing fire risk.”
Emerging battery technologies
The vast majority of EVs are fitted with lithium-ion batteries, as they offer a good balance of energy density, power output and lifespan, although others are under development.
Sodium-ion batteries could provide a cost-effective alternative, with the promise of improved safety and enhanced cold-weather performance. Other cutting-edge battery chemistries include solid-state, iron-air and zinc-manganese oxide. However, currently, lithium-ion batteries are prevalent in EVs.
The busiest sections of the M25 can see over 200,000 vehicles daily. Factors like time of day, day of the week, and specific locations along the M25 contribute to variations in traffic density.
There was a multi-vehicle incident on the M25
IMAGINE IF...
Counting the cost
135 vehicles were either damaged or destroyed in the fire, including 10 goods vehicles. 25 drivers and passengers sustained injuries – some serious. Significant contamination caused by lithium-ion batteries resulted in widespread environmental pollution issues and posed health risks. The M25 is shut for 6 weeks, causing traffic chaos on London’s orbital road network.
Worst-case scenario
Friday afternoon, rush hour, a lorry loses its load on the M25, between junctions 13 and 14, near Heathrow, causing a 5-mile tailback. With traffic at a standstill, a faulty battery on an EV overheats and the cells catch fire. Within minutes, the fire has spread to 36 nearby EVs – through thermal runaway or from sparks generated by the original fire. The emergency services are called, and the M25 is closed between junctions 12 and 15. Over 500 drivers and passengers are evacuated.
It takes 5 days to fully extinguish the fires.
What the experts say
MOTOR CLAIMS
Joe Ashworth, TPA Motor Director, Sedgwick
Motor claims
Personal injury claims
Environmental pollution claims
Business interruption
Legal claims
Extremely high temperatures – when lithium-ion batteries undergo thermal runaway they can reach temperatures of 2,760C°.
Difficult to extinguish – EV fires can take up to four days to extinguish and can spontaneously re-ignite several days later.
Rapid fire spread time – Fire Brigade statistics suggest that the standard car-to-car spread time during a typical car park fire was historically 10 minutes. With EVs, the estimated spread time is 90 seconds, and safe parking margins of 5m to prevent spread between EVs are not practically viable.
IMAGINE IF...
‘The success of personal injury claims will hinge on negligence being proven’
The potential costs of possible injury claims for burns, smoke inhalation and possibly post-traumatic stress disorder (PTSD) could be significant and, given the scale of this scenario, might easily warrant a sizable reserve. However, considerable caution will be necessary, given that substantial hurdles would need to be overcome for legal liability to attach.
‘Detailed forensic expert evidence will be required’
Forensic investigations will be necessary to determine the cause of the alleged EV battery failure. Also, from the perspective of the potential liability of the motor insurer of the ‘at fault’ vehicle, the age and service history will be needed.
Had the vehicle been subjected to a previous recall, and is there a history of similar incidents with this vehicle model? Identification of any pre-existing damage to the battery, as well as the method by which the vehicle was usually charged and when it was last charged, will also be required. The owner's evidence will be crucial in determining whether there were any warnings about the impending failure of the battery.
‘Consideration must be given as to how the fire spread’
Were there any failures in the extinguishment response? Was the fire spread exacerbated by other factors, such as the presence of hazardous materials on adjacent vehicles?
‘Have risk assessments and emergency plans been updated?’
EV fires release superheated, highly toxic vapour clouds, and it’s worth checking that all risk assessments, emergency, and public evacuation plans are up to date.
Duncan Muress, Head of Complex Liability, Sedgwick
PERSONAL INJURY CLAIMS
‘Firefighters may have no choice but to let the batteries burn out’
EV fires burn hotter, spread faster, and require significantly more water to extinguish than fires involving petrol or diesel vehicles. Given the potential scale of this scenario, the intense heat and rapid spread of the fire may leave firefighters with no choice but to let the batteries burn out.
Firefighters would focus on containing the fire and preventing it from spreading to surrounding areas. The resultant fire suppression water runoff would then pose a danger in itself, as it would contain various heavy metals and fuel contaminants.
‘Effective scene management is key’
Preserving and containing the scene and conducting a quick investigation would be critical for post-incident analysis to understand the resulting contaminant plumes, potential pathways, and receptors that would be impacted by the contamination.
With a fire of this size, effective scene management is key, including coordination with emergency services, battery experts, hazardous-material-trained environmental teams, environmental agencies, environmental health, and local and national government authorities.
‘Heavy metal particles could be deposited over a large area’
The potential migration of contaminants would be an immediate primary concern. The ground contamination in the source area, the distance the water run-off travels and identifying whether this has entered any surface water or groundwater sources. Additionally, the spread of airborne particles is also relevant, as the smoke generated by the fire would contain heavy metals that could be deposited over a considerable distance from the fire itself.
‘Remedial works would cost multimillions of pounds’
An incident of this magnitude has the potential to decimate local wildlife, and if contaminants enter drinking water, it will impact human water sources for years, affecting hundreds of thousands of people and leading to multimillion-pound costs for remedial works alone.
The scale of this incident would undoubtedly lead to widespread health risks to ground, surface water and groundwater, building structures, flora, fauna, third-party property and human health. Some contaminants in lithium-ion batteries are carcinogenic, while others lead to neurological problems and can cause respiratory system damage.
Leanne Brumby, Principal Environmental Consultant, EFI Global
ENVIRONMENTAL POLLUTION CLAIMS
‘The impact on local businesses would be more significant than a traditional vehicle accident or fire’
It’s clear that risks associated with EV lithium-ion battery technology pose scenarios that result in more severe and longer-lasting events. In any BI loss, time and proximity are crucial to the ultimate quantum, which is key to understanding why EV incidents pose such a material risk to BI claims.
While a traditional car fire can be extinguished within a few hours, the potential scale of the M25 scenario would make a section of the motorway unusable for several weeks. A business situated close to the incident, which depends heavily on M25 access to operate, will face business impacts far exceeding those caused by any typical accident or car fire.
‘Restricted road access could lead to substantial revenue losses’
Businesses relying on road access may need to take significant steps to mitigate their losses, either through inefficient cost structures, such as increased freight and operating costs, or through the temporary diversion of customers (if the business is fortunate enough to be able to do so) until the risk is diminished. Access may be fully or partially prevented for an extended period, which can also result in revenue losses or increased costs until access is restored.
The time elapsing due to the fact that it’s an EV fire could mean the difference between an interruption lasting a matter of hours, making it a below deductible event, to one that changes the future performance of the business for a materially longer time.
‘Considerable losses would accumulate if an EV fire impacted a car park that drives customers and revenue’
More commonly, and as experienced on recent claims, consider this fire occurring in a shopping centre car park, or any car park that is relied upon to drive customers and revenue. It’s conceivable that the entire centre could close, at which point multiple tenants would present ongoing business interruption losses as a result of the difficulties in extinguishing EV fires.
Any car park that generates revenue, such as an airport, would suffer massive losses in the event of an EV fire compared to a standard car fire, as the tail of the damage would be far longer and impact a greater area. Time is often the most important determinant of claim value when confronted with a BI loss. This doesn’t translate well given the complexities involved in mitigating and extinguishing risks associated with EV technology.
Andrew Cardamis, Head of FAS
BUSINESS INTERRUPTION
‘EVs present a change in the recovery landscape.’
Coupled with rising repair and vehicle costs, as well as the increased complexity of supply chains, recoveries represent a headache for insurers on both sides of the liability divide. Motor insurers will see higher-value claims on both a first-party and third-party basis. From a recovery point of view, these will continue to be pursued in the usual manner, either in tort, contract or statute.
‘Tort claims will always be tricky.’
This is factually due to the intensity of the damage, meaning that forensic evidence may be destroyed, and legally due to issues with pure economic loss and the general requirement to demonstrate causation. Contract claims will be the primary cause of action that consumers will pursue. These claims can be mitigated by robust and well-drafted limitation clauses, as well as the strict application of the doctrine of privity.
Stature claims are generally handled under the Consumer Protection Act 1987. This is a route we are expecting to see more of, particularly as brand liability is pursued versus out-of-jurisdiction manufacturers. Company structure and registration of brand ownership may limit direct risk.
‘Is the existing insurance regime fit for purpose for EVs?’
Currently, the existing insurance regime, essentially created out of the Road Traffic Act 1988 and its amendments, brings EVs within its scope. Many regard this regime as unlikely to remain fit for purpose, particularly with the changes brought about by the Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019.
The Automated and Electric Vehicles Act 2018 sought to regulate the area of ‘driverless’ cars. However, many suspect that the rate of change in the EV industry rapidly outpaces the legislative framework.
‘PL insurers pricing in risk to EV manufacturers’
Product liability insurers are already pricing in a substantial amount of risk to EV manufacturers. Specifically, they are looking at:
General consideration as to whether Lithium-ion batteries meet safety requirements under General Product Safety Regulations 2005 (GPSR).
Fire warranties and their strict application
Obligations to carry out recalls, particularly on sellers and resellers.
Second-hand goods are expected to be included in the scope of the GPSR. The resale of second-hand EV cars seems prone to difficult discussions about levels of enquiries undertaken to ensure goods are ‘reasonably fit for purpose’
Regulation around disposal. These are likely to be substantially increased as the calorific content of modern batteries increases. The high price of components may mitigate against this a little, but there are bound to be claims arising from unsafe storage and disposal.
John Hinton, Managing Director, Sedgwick Legal Services
LEGAL CLAIMS
Vehicle fire claims
Vehicle fire claims
Motor claims
Personal injury claims
Environmental pollution claims
Business interruption
Legal claims
‘Tests evidence that the radiant heat of a blazing vehicle can ignite EVs at a distance of 1.2 metres.’
Vehicles stuck in traffic are generally less than a metre apart, so this M25 scenario is entirely possible.
‘A recent EV fire quickly spread to 17 vehicles within 4 minutes.’
In a recent car park fire investigation, it was proven that the blaze, which originated from an EV, quickly spread and created a running fuel fire that extended across the three-metre lanes before igniting vehicles in the opposite rows. This multi-vehicle incident all happened within four minutes.
‘The damage often goes beyond the fire itself.’
In vehicle fires, it’s very common for the battery packs to fuse to the road. The resulting damage necessitates extensive highway repairs, the costs of which are inevitably recovered from insurers. Each road closure and repair following a single-car fire can cost up to £60,000.
Beyond EVs, the heat from the fire can cause the plastic and polymer fuel tanks in fossil-fuel vehicles to rupture, leading to a running fuel fire. Diesel and petrol entering the tarmac and running off into sidings and land alongside the motorway can cause significant environmental damage.
In a recent car park fire investigation, it was proven that the blaze, which originated from an EV, quickly spread to combustion fuelled vehicles and created a running fuel fire that extended across the three-metre lanes before igniting vehicles in the opposite rows. This multi-vehicle incident all happened within four minutes.
Stephen Elliot, Senior Forensic Fire Investigator, EFI Global
VEHICLE FIRE SPECIALIST
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