Thousands of motorists could be left without valid auto insurance starting today due to the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle coverage to UK clients, recently entered administration. Policyholders are advised that their insurance with the company is no longer in effect as of December 1 and must seek alternative coverage. It is estimated that around 16,000 individuals and small businesses were insured by Premier Insurance before its collapse. Claims will now be handled by the Financial Services Compensation Scheme (FSCS) as the company is no longer processing payouts.
The company ceased issuing new insurance policies in January 2025, with Freddie White and Bradley Chadwick of Grant Thornton appointed as administrators. Sarah Marin, chief customer officer at FSCS, stated that they are collaborating with Grant Thornton to safeguard eligible UK policyholders and small firms with turnovers under £1 million. Motor insurance is mandatory in the UK and needs to be renewed annually, with options including third party, third party fire and theft, and fully comprehensive coverage. When comparing insurance quotes, utilizing comparison websites like Compare the Market, Go Compare, and Confused.com is 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 sites, such as Direct Line. Exploring cashback opportunities on platforms like Topcashback and Quidco when switching policies is also advisable.