Thousands of UK drivers are facing urgent insurance uncertainty after Premier Insurance Company Limited collapsed into administration. The Gibraltar-based firm, which provided car and motorcycle cover, officially went bust last month.
What Happened to Premier Insurance?
Premier Insurance Company Limited, while based in Gibraltar, specialised in providing motor insurance policies to customers across the United Kingdom. The company entered administration last month, with a critical deadline now looming for its policyholders.
All insurance coverage provided by the failed company will officially end on 1 December 2025. This sudden collapse is estimated to impact approximately 16,000 individual customers and small businesses throughout the UK.
Protection for Affected Policyholders
The Financial Services Compensation Scheme (FSCS) has stepped in to manage the fallout. Sarah Marin, Chief Customer Officer at the FSCS, sought to reassure worried customers.
"We understand customers will be worried about how Premier Insurance Company Limited's failure will affect their motor insurance policies," Ms Marin stated. She confirmed that the FSCS is working closely with the Insolvency Practitioner, Grant Thornton (Gibraltar), to ensure all eligible UK policyholders are protected.
The protection scheme will cover eligible individuals and firms with an annual turnover of less than £1 million. Premier Insurance customers have been assured that their claims will continue to be considered against the terms of their original policies under the FSCS safety net.
Martin Lewis Issues Parallel Warning
This insurance collapse coincides with an important consumer warning from money-saving expert Martin Lewis. He has alerted drivers about potentially misleading 'free' car finance mis-selling checks circulating online.
Lewis cautioned that these offers, often "sprayed across the internet and social media," might not be as straightforward as they appear. He explained that many require users to tick terms and conditions boxes that actually sign them up with claims management firms.
"Some of those are not clearly telling you that if you do this, you're going to become a client of a claims management firm who could then take 30 per cent of any future pay out that you get," Lewis warned on social media platform X.
He emphasised that with the Financial Conduct Authority proposing a mass redress scheme, most people can make claims using free templates available on his MoneySavingExpert.com website without paying substantial fees to third parties.
For those who may have already signed up with such firms, Lewis noted that consumers have a 14-day cooling-off period during which they can cancel any agreement.
