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In general, I would recommend a fire extinguisher in ANY and ALL cars, gasoline, electric, or otherwise. (Make sure it is an extinguisher rated for electrical fires though.)
General precautions, like a good main fuse and disconnect are standard and MUST be used.
In my EV conversion, I told my insurance agent exactly what I had planned to do with the car, and she had no problem with it. In most ways, it is just like when someone takes one engine out of their truck and puts a different one in.
I would imagine that insurance would cover the CAR fine, but simply WOULDN'T cover the PHEV kit. Many insurance policies clearly state that they don't cover after-market items added to the car.
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