Thousands of motorists could face a lapse in their car insurance coverage following the collapse of Premier Insurance Company Limited, a Gibraltar-based insurer that specialized in providing car and motorcycle insurance to UK policyholders. The company, which recently entered administration, ceased operations as of December 1, rendering policies invalid. Affected drivers are urged to secure alternative coverage promptly.
Individuals who have already obtained new car insurance policies will be safeguarded by their updated providers. It is estimated that around 16,000 customers and small businesses were insured by Premier Insurance at the time of its collapse. Claims previously handled by the company will now be covered by the Financial Services Compensation Scheme (FSCS).
The company ceased issuing new insurance policies in January 2025, and the joint administrators, Freddie White and Bradley Chadwick of Grant Thornton, have been tasked with managing the insolvency. Sarah Marin, FSCS’s chief customer officer, reassured policyholders that the FSCS is collaborating closely with the appointed insolvency practitioner to ensure protection for eligible UK customers and firms with turnovers under £1 million.
In the UK, car insurance is mandatory and must be renewed annually. The three primary types of coverage are third party, third party fire and theft, and fully comprehensive. When seeking new insurance quotes, utilizing comparison websites such as Compare the Market, Go Compare, and Confused.com can help in finding competitive rates. MoneySavingExpert.com suggests renewing car insurance 20 to 26 days before the current policy expires and recommends checking with providers directly as not all may be listed on comparison platforms.
Some well-known insurers like Direct Line may not feature on comparison sites, so contacting them directly after finding a better deal elsewhere could lead to additional savings. Exploring cashback opportunities on platforms like Topcashback and Quidco when switching to a new policy may also offer financial benefits.