Yes because the exposed wire can touch something else and arc or spark to cause a fire.
How does bad wiring cause fire? Bad wiring causes fires and in many cases people lose their most valuable asset because they ignored the safety of the electrical systems in their house. The easiest step you can take in reducing the risk of electrical fires, is to avoid overloading your home's electrical circuits.
According to experts, car fires can be caused by fuel leakages, overheating, short circuits, and accidents, among other factors. Mr Grace Robert Mutebi of Mutebi Garage, says, many car fires start
But a frayed wire is not the only way in which an electrical fire can start in your car. When your battery constantly recharges, the hydrogen which starts to accumulate in the engine bay will spark occasionally due to the current in the battery. If you have any leaking flammable fluids, that's all that is needed to start a fire.
Vehicle Fires due to Electrical Causes. He was in a hurry and tossed the car jack into the back of the trunk when he was done changing the tire - instead of putting the jack back into its holder. The jack eventually slipped into a wheel-well and, unknown to the guy, worked its way onto the main wire harness.
Car engines operate at a very high temperature, and any contact with a cloth or cleaning liquid can cause an immediate fire that can engulf the vehicle in seconds. Tampering with OEM wiring Many people opt for after-market accessories like additional lamps or infotainment.