Thousands of drivers could be left without valid car insurance today following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle policies to UK customers, recently entered administration. Policyholders are urged to secure new coverage as existing policies are no longer valid starting December 1. It is estimated that around 16,000 individuals and small businesses were insured by Premier Insurance before its collapse. Claims are now handled by the Financial Services Compensation Scheme (FSCS) as the company is no longer processing payouts.
The company ceased issuing new policies in January 2025, and administrators Freddie White and Bradley Chadwick from Grant Thornton were appointed. Sarah Marin, FSCS’s chief customer officer, reassured customers that efforts are in place to protect eligible policyholders. Firms with an annual turnover below £1m are also covered by FSCS. Car insurance is mandatory in the UK, with three main types available: third party, third party fire and theft, and fully comprehensive. When seeking new quotes, comparison websites like Compare the Market, Go Compare, and Confused.com can help find competitive prices. MoneySavingExpert.com recommends renewing car insurance 20 to 26 days before the policy expires and exploring direct quotes from providers not featured on comparison sites, such as Direct Line. Additionally, seeking cashback opportunities through platforms like Topcashback and Quidco when switching policies can be beneficial for drivers.
