Thousands of motorists could find themselves without valid car insurance today following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer catering to UK customers with car and motorcycle policies, recently entered administration. Policyholders are urged to secure alternative coverage as their existing policies are no longer valid starting December 1.
Individuals who have already switched to a new insurer are now protected under their new policy. Approximately 16,000 customers and small businesses were covered by Premier Insurance before its collapse. Claims will now be handled by the Financial Services Compensation Scheme (FSCS) as Premier Insurance is no longer able to pay out.
The company ceased issuing new insurance policies in January 2025, with Grant Thornton’s Freddie White and Bradley Chadwick appointed as joint administrators. FSCS’s chief customer officer, Sarah Marin, assured policyholders that efforts are underway to safeguard eligible UK customers and firms affected by the insurer’s failure.
Car insurance is a legal necessity in the UK, requiring annual renewal. The three main types of coverage are third party, third party fire and theft, and fully comprehensive. When seeking new quotes, using comparison websites like Compare the Market, Go Compare, and Confused.com can help in finding competitive prices. MoneySavingExpert.com recommends renewing car insurance 20 to 26 days before the current policy expires and suggests checking with providers directly for additional options not listed on comparison sites.
Direct Line is one major insurer not featured on comparison websites. It’s advisable to inform your current provider of any better deals found elsewhere. Exploring cashback options on platforms such as Topcashback and Quidco can also lead to savings when switching policies.