Hi and thanks for using 2carpros.com.
First and foremost, if you see smoke and smell wires burning, disconnect the battery. Otherwise, you could end up with a fire.
Now, when it shut off while driving, did the oil light come on and then the engine shut off? Is there oil in the engine? If you were out of oil and the engine locked, the starter won't be able to turn the engine and it will draw too many amps from the battery. This could easily start a fire.
With that being said, I suggest seeing if you can turn the engine crankshaft by hand using a large wrench. If you can, remove the starter and have it tested.
*** Note: Do not remove the starter without first disconnecting the battery.
Here is a link that shows in general how to remove a starter. In the US, the 118 isn't offered, so I don't have the technical info specific to your vehicle. However, this should help.
https://www.2carpros.com/articles/how-to-replace-a-starter-motor
Now, if the starter checks good and the engine isn't locked, you have a wiring issue that needs resolved. Based on your description, if you don't have experience, I recommend having a technician check it.
Honestly, disconnect the battery when you are not there. If you have a wire melting the insulation off, if it shorts directly due to no insulation, you may get yourself in trouble. I've seen many fires caused by electrical issues.
Let me know if you have other questions or need help. I'll do my best to do so. Also, if you get back to me, let me know approximately where the smoke was coming from.
Take care,
Joe
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Friday, December 14th, 2018 AT 6:46 PM