The insurer of a car that caught fire is not liable for damage to a neighbour’s vehicle, the financial services ombudsman has ruled.

The neighbour’s vehicle was not insured but he said the insurer of the other car – parked next to his when it went up in flames – should cover the damage, and pay towing, storage and hire car costs.

He said the insured caused the damage because they did not take care of their own car, a 2013 Ford Festiva.

But RAC Insurance contended its policyholder was not negligent and did not cause the fire, and the Australian Financial Complaints Authority agrees.

AFCA says the complainant has not shown the insured vehicle owner could have foreseen the fire, or that it resulted from failure to maintain the vehicle.

The insurer said the vehicle was serviced regularly but the records were kept in the glovebox and destroyed in the fire.

The fire brigade considered the blaze an accident, possibly due to an electrical fault. A fire investigator could not determine the cause, and the ombudsman says even if the “fire indicated negligence of some kind, I am not satisfied it confirms negligence by the insured”.

Read the determination here.