2007 BMW 530I lighting problems

The headlights, driving lights are all shorted out. This was a dangerous situation as it happened at night. When taken to my mechanic, he told me that it is a common fault on bmw's. That the wiring for all the lights is made from recycled plastic and with the heat from outside and the engine the insulation completely deteriorates. He showed my bare wires everywhere and if you touch the insulation it just crumbles away.

The sheathing on my headlight's wiring is flaking off which could lead to potential fires. I was quoted $1500 per headlight to replace them with the same crappy headlight housings that are made with the same material that will eventually do the same thing. All I need is to have the car parked in my garage and it causing a fire that could burn down our home or worst injure my family.