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I have a 1975 dodge custom converted to a fire truck, everything is original and the body is cherry. Over the winter someone added plug wire covering that are plastic. Well after running the truck for 45min the plastic began to melt. I removed all of the coverings and while do that I was told it might be important to have it on. I told him I didn't think it would have been there originally and the melting was a fire hazard, he kept trying to debate this with me to which I did not brother to continue to respond. Pictured below is the same product that was put on the wires.
I use that stuff ALL the time for electrical wires. Some of it resting on the block or heads. It's NOT for the plug wires that can get pretty close to the exhaust manifold or headers and if it's melting from a hot electrical wire, you have bigger problems. They do make "socks" to cover the spark plug boot ends of the plug wires and (I think) some that can go over the entire plug wire, but that ain't it.