Thousands of drivers are being advised to seek alternative motor 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. Policies with this company will terminate on December 1, affecting approximately 16,000 individuals and small businesses.
The Financial Conduct Authority has confirmed that brokers will reach out to affected policyholders to assist in securing new coverage. Premier Insurance ceased issuing new policies in January 2025. Joint administrators, Freddie White and Bradley Chadwick of Grant Thornton, have been appointed to handle the situation.
Effective immediately, Premier Insurance will no longer honor claims, with the Financial Services Compensation Scheme (FSCS) stepping in to provide coverage. The FSCS, an independent body safeguarding consumers in the event of a financial firm’s failure, will protect eligible UK policyholders and small firms with turnovers below £1m.
Sarah Marin, Chief Customer Officer at the FSCS, reassured customers about the ongoing protection of their claims. As car insurance is mandatory in the UK and must be renewed annually, policyholders are advised to utilize comparison websites like Compare the Market, Go Compare, and Confused.com to explore different options. Timing-wise, renewing car insurance 20 to 26 days before the current policy expires is recommended. Additionally, exploring quotes directly from providers, including those not listed on comparison sites like Direct Line, could lead to better deals. Customers switching to a new policy are encouraged to seek cashback opportunities through platforms such as Topcashback and Quidco.