Some 16,000 policyholders have been left unprotected after a Gibraltar-based motor insurance company serving UK customers plunged into administration in October last year. As part of the administration process, the joint administrators formally terminated the remaining insurance policies on December 1, warning customers that they would be left without cover.
On October 14, Premier Insurance Company Limited (Premier Insurance), which mainly sold motor policies to UK individuals and small businesses, was placed into administration following an application to the Supreme Court of Gibraltar. It then stopped writing new policies in January 2025, meaning the last will expire by the end of this month. In a new update published on January 15, the Financial Conduct Authority (FCA) has warned that, although all customers currently have motor insurance cover, the type of policy held may affect the level of coverage for some claims.
Premier Insurance, regulated by the Gibraltar Financial Services Commission (GFSC), operated in the UK on a freedom-of-services basis, meaning some UK customers hold policies with the firm. Policies were sold in the UK through various insurance brokers via the firm’s UK-based intermediary, Premier Underwriting Ltd.
In October, Freddie White and Bradley Chadwick of Grant Thornton were appointed as joint administrators for the company.
Customers have been advised of their next steps and are urged to find new insurance immediately, as policies ended on December 1, 2025, and the FSCS only protects against losses, not the full policy value, according to Which?. Eligible UK customers of Premier Insurance are protected by the Financial Services Compensation Scheme (FSCS).
The FCA’s latest update reads: “For all customers, your policy will not be renewed when it comes to an end. This means you’ll need to arrange new insurance before your current cover expires to make sure you stay protected.”
It adds: “If you’re affected, your broker will contact you directly to discuss options for arranging alternative cover.
“Motor insurance is compulsory. It is an offence to use your vehicle without it. Make sure you have valid insurance cover for your vehicle – if you are not sure if your cover is affected, contact your broker.
Driving without insurance is illegal. Even if it’s just for a day, driving uninsured can land you in hot water, and if you get caught, you could face penalties including a fine of £300, six penalty points and an unlimited fine and driving disqualification if the case goes to court. The police can also seize and potentially destroy your vehicle.