Thousands of motorists could be left without valid car insurance today following the collapse of a major insurance provider. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle policies to UK customers, recently entered administration. Those holding policies with the company are advised that their coverage is no longer in effect as of December 1 and must seek alternative insurance options.
Individuals who have secured new car insurance policies are now covered by their new providers. It is estimated that around 16,000 customers and small businesses were insured by Premier Insurance before its collapse. Claims are no longer being processed by the company, with the Financial Services Compensation Scheme (FSCS) stepping in to provide coverage to affected policyholders.
The joint administrators, Freddie White and Bradley Chadwick from Grant Thornton, were appointed after Premier Insurance ceased issuing new policies in January 2025. Sarah Marin, chief customer officer at FSCS, reassured customers that the organization is working closely with the appointed Insolvency Practitioner to safeguard eligible UK policyholders and small firms. Motorists are reminded that car insurance is a legal necessity in the UK and must be renewed annually.
When seeking new insurance quotes, utilizing 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. Additionally, it is advisable to directly check quotes with providers not listed on comparison sites, such as Direct Line, and to negotiate with current insurers to match or beat better deals. Exploring cashback opportunities on platforms like Topcashback and Quidco when switching policies can also be beneficial for cost savings.