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More than 16,000 policyholders must now find alternative protection after the motor insurance company went into administration
Thousands of motorists have been left without insurance after a company went into administration(Image: )
Gibraltar-based motor insurer Premier Insurance Company Limited has collapsed into administration, leaving 16,000 policyholders without cover. The Financial Conduct Authority has issued urgent warnings to UK customers, who must now secure alternative arrangements immediately to avoid legal penalties for driving while uninsured.
- Premier Insurance Company Limited entered administration in October following an application to the Supreme Court of Gibraltar. The firm primarily served the UK market by selling motor insurance policies to individuals and small businesses.
- Administrators from Grant Thornton formally terminated all remaining insurance policies on December 1 last year. This move has left approximately 16,000 policyholders without active protection for their vehicles or business operations.
- The company had already ceased writing new business in January 2025 as part of its decline. Consequently, any policies that were not cancelled earlier are set to expire by the end of this month.
- The Financial Conduct Authority (FCA) has warned that the specific type of policy held may impact claim coverage levels. While some protection exists, the nature of the administration means that full policy values are not guaranteed.
- Eligible UK customers are protected by the Financial Services Compensation Scheme (FSCS) to a certain extent. However, experts warn that this scheme is designed to cover losses rather than the total value of the original policy.
- Driving without valid insurance is a serious offence in the UK that carries significant legal consequences. Uninsured drivers risk facing a £300 fine, six penalty points, and the potential seizure or destruction of their vehicle.