Thousands of motorists could now be without valid auto insurance following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle coverage to UK policyholders, recently entered administration. Policies with this company are no longer effective as of December 1, necessitating affected drivers to secure new insurance. It is estimated that around 16,000 individuals and small businesses were insured by Premier Insurance.
Claims are no longer being honored by Premier Insurance, with coverage now being handled by the Financial Services Compensation Scheme (FSCS). The company ceased issuing new policies in January 2025, with Grant Thornton appointing Freddie White and Bradley Chadwick as joint administrators.
Sarah Marin, FSCS’s chief customer officer, reassured customers that the FSCS is actively collaborating with Grant Thornton to safeguard eligible UK policyholders. Firms with an annual turnover below £1 million will also receive protection. Car insurance is a legal obligation in the UK, requiring annual renewal, with the main types being third party, third party fire and theft, and fully comprehensive.
When seeking alternative insurance quotes, using comparison websites like Compare the Market, Go Compare, and Confused.com is advisable. MoneySavingExpert.com recommends renewing car insurance 20 to 26 days before the current policy ends and checking quotes directly with providers not listed on comparison sites, such as Direct Line. It is suggested to negotiate with your current provider after finding a better deal elsewhere. Additionally, exploring cashback options on platforms like Topcashback and Quidco for new policies could be beneficial.