A major insurance company has recently entered administration, leaving over 16,000 policyholders without coverage. Premier Insurance Company Limited, primarily offering motor policies to UK individuals and small businesses, was placed into administration in October 2025 following an application to the Supreme Court of Gibraltar. This means that all remaining insurance policies were formally terminated on December 1, 2025, leaving customers without protection.
The Financial Conduct Authority (FCA) has issued a warning, stating that while all customers currently have motor insurance cover, the type of policy held may affect the level of coverage for some claims. Customers have been advised to find new insurance immediately, as the Financial Services Compensation Scheme (FSCS) only protects against losses, not the full policy value.
Driving without insurance is illegal and can result in severe 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. It is crucial for all affected customers to arrange new insurance before their current cover expires to ensure they stay protected.
This situation highlights the importance of staying informed about insurance coverage and the potential risks associated with insurance companies entering administration. It is essential for policyholders to take action promptly to avoid any gaps in coverage and to protect themselves from financial losses.
