A CAR and van insurance firm with over 16,000 customers has collapsed into administration, leaving thousands of drivers without cover.
Customers of Premier Insurance Company Limited (Premier Insurance) have been told to consider alternative motor insurance as soon as possible to avoid future claims not being covered.
The firm was placed into administration on October 14 following an application to the Supreme Court of Gibraltar.
Freddie White and Bradley Chadwick of Grant Thornton have been appointed as joint administrators.
The Gibraltar based-insurer, which mainly wrote car and motorcycle insurance policies for UK customers, stopped writing new insurance in January 2025.
This means all policies will expire by the end of January 2026, and won’t be renewed when they come to an end.
Drivers should arrange new insurance before this happens to make sure they are covered.
Customers have been told that while they continue to have motor insurance currently, some claims may not be covered fully.
According to watchdog the Financial Conduct Authority, you should contact your existing broker or the British Insurance Brokers Association (BIBA) if you need help finding new cover.
I’m a customer – what should I do now?
Once an insurance company goes into administration, the firm appointed to sort out the company’s finances – called an insolvency practitioner – will let you know.
When an insurance firm goes bust, you are protected by the Financial Services Compensation Scheme (FSCS).
This means that if your policy is not taken over by a new insurer, you will get a refund from the FSCS.
This refund will be based on the remaining portion of your policy premium.
This process may take a while, so it’s important that you keep in the loop by signing up to the FSCS website for updates on what is happening.
If no company is willing to take over the collapsed firm, then the FSCS will pay you a refund.
If you have any questions about your refund, you can contact the FSCS here: https://www.fscs.org.uk/contact-us/.
It’s important to keep all important paperwork about your policy to hand.
If you are unsure of whether your insurance policy was underwritten by Premier Insurance, you should contact the broker that sold you the policy.
Sarah Marin, chief customer officer at the FSCS, said: “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 FCFS is working closely with the Insolvency Practitioner, Grant Thornton (Gibraltar) to make sure all eligible UK policyholders are protected.
“FSCS will also protect eligible firms with an annual turnover of less than £1m.
“Premier Insurance Company Limited customers can be assured that their claims will continue to be considered against the terms of their policy.”
Separately, some energy firms have ceased trading this year sparking chaos for thousands of customers.
Small firm Rebel Energy went bust in April, leaving around 80,000 customers without an energy supplier.
Green energy firm Ripple Energy also went under in March, filing a notice to appoint administrators.
Customers are protected by regulator Ofgem in these circumstances, as well as any funds that have been paid into accounts and their credit balances.
What is car insurance?
Consumer Reporter Sam Walker reveals all you need to know about the basics…
Car insurance pays out if your vehicle is stolen, damaged, catches on fire or is involved in an accident.
As a minimum, it protects you against any damage you case to other road users, the public or their property – these are called third parties.
You only need to claim on your car insurance when an accident is your fault.
If another motorist is to blame, their insurance should pay out instead.
Car insurance, unlike home insurance, is a legal requirement and if you don’t have it you can be fined up to £1,000.
You can also have your vehicle seized and destroyed.
However, you don’t need to insure your car if it is classed as “off-road”, or holds a statutory off road notification (SORN).
The vehicle has to be kept on private land and not a public highway though.
How to find a good deal on your car insurance
All drivers must insure their cars, otherwise you can be fined £3000 and get six points on our driving licence.
It pays to find the cheapest policy.
Your first port of call is to use a comparison website to check which insurer is offering the cheapest quote.
Try comparing quotes at different times of the day and on different days of the week.
Drivers have told The Sun that quotes have doubled in the evening but dipped in price in the morning – so it pays to look at less busy times of the day, during working hours.
The trick is NEVER to auto-renew your policy – you’ll most likely save by switching to a new insurer, or ringing your existing one up to get a better deal.
Experts say the best time to get car insurance quotes is around 20 to 27 days before you need your new policy to start – circle this important date in your calendar or set a reminder on your phone so you don’t forget.
Generally, the later you leave renewing your policy, the more expensive the premium will be – because insurers see you as a bigger risk.
There are tricks to slashing your premium even more.
See if you can add an extra “responsible driver” to your policy. This could be a great option for younger drivers, who are stung by high premiums (younger drivers are considered riskier to insure).
However, beware of “fronting”. This is when you add a “main” driver to your policy when they’re not, and you’re the one mostly using the car.
Check if you can drive down your bill by tweaking your job title – this could save up to £310 a year, according to MoneySuperMarket.
However, be truthful and don’t lie – if you put yourself down as a dog walker when in fact you’re a chef, you could be accused of insurance fraud, and leave you uninsurable.