Huge Jeep recall over spontaneous combustion

A claim against car insurance AND home insurance? A careless driver may be the least of your clients’ worries - that is if they drive certain four-wheel drive models. Insurers are being urged to review exposure to hybrid vehicle fire risks following a major global recall of Jeep models after multiple incidents of Spinal Tap drummer-like spontaneous ignition.

Stellantis, the parent company of Jeep, has recalled around 375,000 plug-in hybrid Wrangler and Grand Cherokee models worldwide, including vehicles sold in the UK, after identifying a defect in high-voltage battery packs that could cause fires, even when the car is parked and not charging. Jeep’s sales in the UK doubled last year - and nearly 25% are estimated o be hybrid or fully electric.

The company has advised owners to avoid charging their vehicles and to park them outdoors, away from buildings or other vehicles, until remedial work is carried out.

The recall affects 2020–2025 Jeep Wrangler 4xe and 2022–2026 Grand Cherokee 4xe models. Of these, roughly 320,000 are registered in the United States, with several thousand more believed to be on the road in Europe and the UK. Stellantis has reported 19 vehicle fires and one injury associated with the issue.

Fault traced to battery supplier

Investigations point to defective lithium-ion battery packs supplied by South Korean manufacturer Samsung SDI. Damage to cell separators within the battery, combined with other internal factors, can create electrical short circuits and trigger fires.

The affected vehicles were included in previous safety campaigns in 2023 and 2024, during which software updates were applied to improve fire detection and management. However, US regulators have confirmed that some of those earlier fixes were ineffective, with nine of the reported fires occurring in vehicles already recalled once.

A permanent solution is expected soon, Stellantis said, adding that customers will be notified when dealers can perform the required repairs.

Risk management and claims implications

The Jeep recall underscores a growing concern for UK insurers and brokers: lithium-ion battery failures can lead to property damage claims beyond the motor policy itself, particularly when vehicles are parked in residential garages or near other insured property.

While electric and hybrid vehicles remain statistically less likely to catch fire than petrol or diesel cars, the intensity and unpredictability of lithium-ion fires have raised questions about policy wording, subrogation rights, and liability allocation when losses span multiple policies, for example motor, home, and commercial property.

Underwriters have already begun reassessing aggregate exposure where vehicles are charged in multi-storey car parks or on residential developments. “A single battery failure can have cascading effects in enclosed environments,” said one senior London market underwriter. “We’re increasingly looking at fire suppression standards, isolation procedures and infrastructure resilience as part of risk selection.”

A setback for EV confidence

For Stellantis, the recall is another setback in its effort to expand electric and hybrid production. The company recently withdrew nearly 300,000 US vehicles for unrelated mechanical faults and is under pressure to restore confidence among dealers and regulators.

Chief executive Antonio Filosa has pledged to invest around $13 billion (£10.6 billion) in US operations to accelerate domestic production and reassure customers of the company’s long-term stability.

However, the Jeep recall highlights how safety incidents involving electrified vehicles can quickly evolve into reputational and insurance challenges, with implications for claims costs, product recall cover, and reinsurance exposure.

Guidance for policyholders

Jeep owners in the UK are advised to check whether their vehicles are affected by visiting recalls.mopar.com or contacting Jeep customer services. Until repairs are completed, vehicles should not be charged and should be parked outside, well clear of property or other vehicles.

For brokers, this incident serves as a timely reminder to alert clients about emerging risks associated with hybrid and electric vehicles - not only on the road, but in driveways, garages, and shared parking spaces.

Hybrid and plug-in hybrid vehicle fire-risk summary