Thousands of drivers are being advised to seek new motor insurance as a provider has gone bankrupt. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle policies to UK customers, has entered administration. Policies with the company will terminate on December 1, affecting approximately 16,000 individuals and small businesses.
The Financial Conduct Authority has stated that impacted individuals will be contacted by brokers to assist in finding alternative coverage. Premier Insurance ceased issuing new policies in January 2025, with joint administrators Freddie White and Bradley Chadwick from Grant Thornton now overseeing the process.
Customers of Premier Insurance will now be covered by the Financial Services Compensation Scheme (FSCS) as the company is no longer honoring claims. The FSCS, an independent organization, safeguards consumers in cases where a financial services firm fails to meet claim obligations.
Sarah Marin, FSCS’s chief customer officer, reassured policyholders, stating that the FSCS is collaborating with Grant Thornton (Gibraltar) to protect eligible UK policyholders. The FSCS will also support small businesses with an annual turnover below £1m, ensuring that claims are evaluated according to policy terms.
Car insurance is mandatory in the UK and must be renewed annually, with options including third party, third party fire and theft, and fully comprehensive coverage. When seeking new quotes, using comparison websites like Compare the Market, Go Compare, and Confused.com is recommended. MoneySavingExpert.com suggests renewing insurance 20 to 26 days prior to expiry and checking quotes directly with providers not listed on comparison sites, such as Direct Line.
For potential cashback opportunities, consider using sites like Topcashback and Quidco when switching policies.
