Thousands of motorists could be left without valid auto insurance starting today following the collapse of a provider. Premier Insurance Company Limited, a UK car and motorcycle insurance provider based in Gibraltar, entered administration last month. Policyholders with the company are advised that their coverage is no longer effective as of December 1 and must seek alternative insurance. 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 Premier Insurance is no longer processing payouts. The company ceased issuing new policies in January 2025, and administrators Freddie White and Bradley Chadwick from Grant Thornton have been appointed to manage the situation.
Sarah Marin, the chief customer officer at FSCS, reassured policyholders that efforts were underway to protect eligible UK customers affected by the insurer’s failure. FSCS will also extend protection to qualifying small businesses with an annual turnover below £1 million. Customers are advised that their claims will be reviewed as per their policy terms.
Car insurance is mandatory in the UK and must be renewed annually, with three main coverage options available: third party, third party fire and theft, and fully comprehensive. When shopping for new policies, utilizing comparison websites like Compare the Market, Go Compare, and Confused.com is recommended. MoneySavingExpert.com suggests renewing insurance 20 to 26 days before the current policy expires for optimal savings. Additionally, customers should consider contacting providers directly and explore cashback options through platforms like Topcashback and Quidco when switching policies.