Thousands of drivers are advised to seek alternative motor insurance following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer serving UK customers with car and motorcycle policies, recently entered administration. Policies under Premier Insurance will terminate on December 1, affecting approximately 16,000 individual customers and small businesses.
The Financial Conduct Authority has assured affected individuals that brokers will reach out to assist in securing new coverage. Since January 2025, Premier Insurance has ceased issuing new policies. Grant Thornton’s Freddie White and Bradley Chadwick have been appointed as joint administrators.
In the event of Premier Insurance’s insolvency, claims will now be handled by the Financial Services Compensation Scheme (FSCS). The FSCS acts independently to safeguard consumers when financial firms fail to meet claim obligations. Sarah Marin, the FSCS’s chief customer officer, has reassured customers that eligible UK policyholders and small firms with annual turnovers below £1 million will be protected.
Car 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. To explore alternative 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 advises consumers to check directly with providers not listed on comparison platforms, such as Direct Line.
When switching to a new policy, consider seeking cashback through platforms like Topcashback and Quidco.