Thousands of motorists could find themselves without valid car insurance starting today following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle coverage to UK policyholders, entered administration recently. Individuals holding policies with the company are advised that their coverage is no longer effective as of December 1 and should seek alternative insurance. The insurer had approximately 16,000 clients when it folded, and claims are now being handled by the Financial Services Compensation Scheme (FSCS).
New policies from Premier Insurance ceased in January 2025, with Grant Thornton appointing Freddie White and Bradley Chadwick as joint administrators. Sarah Marin, the FSCS’s chief customer officer, assured policyholders that the organization is working with Grant Thornton to safeguard eligible UK customers and small businesses. The FSCS will cover firms with an annual turnover below £1 million. Motor 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 shopping for new insurance, utilizing comparison websites like Compare the Market, Go Compare, and Confused.com is recommended. MoneySavingExpert.com advises renewing policies 20 to 26 days before expiration and directly checking quotes with providers not listed on comparison sites, such as Direct Line. Policyholders are encouraged to negotiate with their current insurer after finding a better deal elsewhere and explore cashback options on platforms like Topcashback and Quidco.
