If there is a report from the fire brigade and the police have confimed it I can't see what the problem could be? What has the insurance compnay said?

Plus gap in Insurance £800 = £1600. From saving up £6300.00 + her insurance of £1600.00 + Are there any faults with vehicle? How can we find out if electrical problems with smoke or fire have happened with other owners?

Edited by Wulfgirl72 on 21/09/2014 at 02:49

First step : have a look on Autotrader, etc for other similar cars, with similar mileages, and see what they are up for sale at.

When you find those prices, take (roughly) 10% off them - most sellers will allow for giving a bit of a discount. If the prices still come out a lot higher than what the insurance is offering, then you have good grounds for refusing to accept their offer, and saying its worth more, and here's the evidence. At that point, they'll probably up their offer.

If they still refuse, then she needs to have a good look through the terms and conditions. There WILL be a procedure to go through for a formal appeal against their decision, so she'll need to go through that. Won't take long, and when she informs them that she's going to do that, then they might just cave in.

Lastly, as others have said, forget going after Fiat for this. If there was a major fire issue with them, then it would be on here, there would be lots of 'noise' on the fiat forums about it. It's just sheer bad luck, but that's why you have insurance.