A UK car and van insurance company with over 16,000 customers has gone into administration, leaving thousands of drivers scrambling for new cover.
Premier Insurance Calls It Quits
Premier Insurance Company Limited, based in Gibraltar, was placed into administration on October 14 after applying to the Supreme Court of Gibraltar.
- Administers Freddie White and Bradley Chadwick of Grant Thornton appointed to manage the collapse
- Stopped selling new policies in January 2025
- Existing policies will expire by January 2026 with no renewals
Customers have been warned to find alternative motor insurance immediately to avoid becoming uninsured.
What This Means for Customers
While policies remain active, some claims might not be fully covered. Drivers are urged to arrange new insurance ahead of their policy expiry to ensure they’re protected on the road.
If you’re not sure whether your insurance was underwritten by Premier Insurance, contact your broker without delay.
Protection and Next Steps
The Financial Services Compensation Scheme (FSCS) offers a safety net. If no insurer takes on your policy, you’ll get a refund for the unused portion of your premium — though claims payments will continue to be processed following policy terms.
“We understand customers will be worried about how Premier Insurance Company Limited’s failure will affect their motor insurance policies. We’d like to reassure customers that FSCS is working closely with the Insolvency Practitioner to protect all eligible UK policyholders.” — Sarah Marin, Chief Customer Officer at FSCS
Keep all policy documents handy and monitor updates by signing up at the FSCS website. For help finding new insurance, contact your broker or the British Insurance Brokers Association (BIBA).
Insurance Troubles Not Limited to Cars
Energy firms have also been collapsing this year, adding to consumer chaos. Rebel Energy and Ripple Energy both went bust earlier in 2025, leaving tens of thousands without suppliers. Regulators like Ofgem step in to protect customers and their credit balances in such cases.
Quick Guide: What Is Car Insurance?
Car insurance protects you if your vehicle is stolen, damaged, or involved in an accident. It also covers damage you cause to others, which is legally required in the UK. Failure to insure your car can lead to fines up to £1,000, points on your licence, or vehicle seizure.
How to Nab the Best Car Insurance Deals
- Use price comparison websites to find cheapest quotes
- Check quotes at different times; mornings often offer better deals than evenings
- Never just auto-renew – switch insurers or negotiate a better rate
- Get quotes 20-27 days before your current policy expires
- Add a responsible driver to lower premiums (just avoid illegal ‘fronting’)
- Be honest about your job title to avoid fraud accusations
Follow these tips to save money while staying legally covered on the roads.
