Thousands of motorists could now be without valid car insurance following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle policies to UK clients, recently entered administration. If you hold a policy with this company, it is no longer effective as of December 1, necessitating the procurement of new coverage. Around 16,000 individual customers and small businesses were impacted by the demise of Premier Insurance. Claims from the company are no longer being honored, with coverage shifting to the Financial Services Compensation Scheme (FSCS).
The company ceased issuing new insurance policies in January 2025, with Freddie White and Bradley Chadwick of Grant Thornton taking on joint administrator roles. Sarah Marin, FSCS’s chief customer officer, reassured policyholders of the FSCS’s commitment to safeguarding eligible UK policyholders and small businesses affected by the company’s failure.
Car insurance is mandatory in the UK and must be renewed annually, with three primary categories: third party, third party fire and theft, and fully comprehensive. When seeking alternative insurance quotes, utilizing 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 expires and suggests exploring quotes directly with providers not featured on comparison sites, such as Direct Line. Exploring cashback options on platforms like Topcashback and Quidco when switching to a new policy can also be beneficial.