Thousands of drivers could face a lapse in their car insurance coverage following the collapse of Premier Insurance Company Limited, a provider based in Gibraltar that offered insurance policies for vehicles in the UK. The company went into administration last month, affecting approximately 16,000 individual customers and small businesses.
Effective from today, policies held with Premier Insurance are no longer valid, prompting affected drivers to seek alternative coverage. Those who have already secured new insurance will be protected by their new providers. Claims previously handled by Premier Insurance will now be managed by the Financial Services Compensation Scheme (FSCS).
The joint administrators of the company, Freddie White and Bradley Chadwick of Grant Thornton, were appointed after Premier Insurance ceased issuing new policies in January 2025. Sarah Marin, FSCS’s chief customer officer, assured policyholders that eligible UK customers and small firms with an annual turnover of less than £1m will receive protection.
In the UK, car insurance is mandatory and must be renewed annually. There are three main types of car insurance: third party, third party fire and theft, and fully comprehensive. To find competitive rates, drivers are advised to utilize comparison websites like Compare the Market, Go Compare, and Confused.com.
It is recommended to renew car insurance 20 to 26 days before the current policy expires, as per MoneySavingExpert.com. While comparing prices, it’s important to note that not all insurance providers are listed on comparison sites. Additionally, negotiating with the current provider or exploring cashback options on platforms like Topcashback and Quidco can potentially lead to better deals.