Customers with a policy from failed firm Premier Insurance only have until Monday (1 December) to find alternative cover or be left unprotected.
The Gibraltar-based insurer, which mainly sold motor policies, entered administration last month.
An urgent warning has been issued to anyone still insured with the firm, as taking to the road without valid cover is a criminal offence and comes with severe penalties.
So what should affected customers do next – and what happens to any claims? Here’s what you need to know.
What do customers need to know?
Premier Insurance stopped selling new policies on 31 December 2024 and ceased trading on 14 October 2025. The insurer is no longer able to pay claims in full and administrators plan to stop all policies on 1 December 2025.
You’ll therefore need to arrange new insurance before your current cover expires to make sure you stay protected. It’s particularly urgent for anyone who took out car, motorcycle or van cover, as 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 the following penalties:
- A fixed penalty of £300.
- Six penalty points.
- An unlimited fine and driving disqualification if the case goes to court.
- The police can also seize and potentially destroy your vehicle.
Will you still be paid for any claims?
Premier Insurance is covered by the Financial Services Compensation Scheme (FSCS), meaning you’ll receive a refund based on the cost of the insurance premium portion of your policy and payment for any outstanding claims.
The FSCS says it has stepped in to help over 16,000 individual customers and small firms with an annual turnover of less than £1m.
How much you’re eligible for depends on the type of policy taken out. While the scheme provides 100% protection for third-party insurance claims, customers with comprehensive cover, including fire and theft, will only be paid 90% of what’s owed.
The scheme says it will process payments once the claims have been approved by the appointed insolvency practitioner, Grant Thornton. If you have a new claim or have a question about an existing one, you should contact claims handling agents Davies Group.
They can be reached by calling 0344 856 2176. Alternatively, you can email premiernewclaims@davies-group.com or premier.claims@davies-group.com.
The FSCS has set up a dedicated page on its website for updates on the case.
- Find out more: different types of car insurance explained
How to find the best deal
Here a few simple steps you can take to find cover that meets your needs, at the best price.
1. Shop around
Price comparison sites such as Compare the Market, Confused.com, GoCompare and MoneySuperMarket allow you to view multiple car insurance quotes at a glance. Just remember, not all insurers are on price comparison websites: Which? Recommended Providers Direct Line and NFU Mutual are examples of this.
It helps to have in mind a list of features of cover that are important to you (and check these features are present in whatever attractive deals you find). For more advice, take a look at our guide on finding cheap car insurance.
2. Pay annually
Paying by the month for cover can make it more manageable for your budget, but it’s usually the most expensive option.
When paying monthly, you’re effectively borrowing the year’s premium to repay in instalments. This typically comes with interest, hiking the overall cost.
3. Watch the excess
Most policies allow you to add a voluntary excess to bring down the premium. Of course, this isn’t free money: the higher the excess, the more you’ll need to pay in the event you make a claim.
Consequently, your total excess (the voluntary excess you’ve chosen plus any compulsory excess that applies to your cover) must be no more than you can afford to pay at short notice if a claim is necessary.
4. Use a broker
A broker’s job is to match your insurance needs with the best available price. Brokers will usually have access to deals and prices that aren’t available directly to customers.
But beware of scammers or ‘ghost brokers’ who pose as brokers and sell fake or dishonestly obtained cover to customers. In some cases, the deception isn’t noticeable until the customer tries to claim.
To find the real deal, visit the British Insurance Brokers’ Association website or call 0370 950 1790.