Thousands of motorists could be left without valid auto insurance starting today following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer catering to UK clients with car and motorcycle policies, recently entered administration. Individuals with policies from this company are advised that their coverage is no longer effective as of December 1 and they must secure alternative insurance. It is estimated that around 16,000 customers and small businesses were insured by Premier Insurance before its insolvency. Claims are now being handled by the Financial Services Compensation Scheme (FSCS) as Premier Insurance is no longer processing payouts.
In January 2025, the company ceased issuing new insurance policies, leading to the appointment of Freddie White and Bradley Chadwick from Grant Thornton as joint administrators. Sarah Marin, the FSCS’s chief customer officer, assured policyholders that efforts are underway to safeguard eligible UK customers working in conjunction with Grant Thornton (Gibraltar). Firms with an annual turnover below £1 million will also receive protection. The FSCS will evaluate claims in accordance with policy terms.
Car insurance is mandatory in the UK and must be renewed annually, with three primary coverage options available: third party, third party fire and theft, and fully comprehensive. To seek new insurance quotes, comparison websites like Compare the Market, Go Compare, and Confused.com are recommended. MoneySavingExpert.com suggests renewing car insurance 20 to 26 days before the current policy expires and checking quotes directly with providers not listed on comparison platforms, such as Direct Line. Policyholders should explore cashback options on sites like Topcashback and Quidco when transitioning to a new policy.