Thousands of motorists could be left without valid auto insurance today following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle policies to UK clients, entered administration last month. Individuals with policies from this company are advised that coverage is no longer in effect as of December 1 and must seek alternative insurance. It is estimated that around 16,000 customers and small businesses were covered by Premier Insurance when it went under. Claims are now handled by the Financial Services Compensation Scheme (FSCS) as the insurer is no longer processing payouts.
In January 2025, the company ceased issuing new policies, and administrators Freddie White and Bradley Chadwick from Grant Thornton were appointed. Sarah Marin, chief customer officer at FSCS, reassured affected customers that efforts are being made to safeguard eligible policyholders in the UK and small businesses with turnovers under £1 million. Motor 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. When seeking new insurance quotes, using comparison websites like Compare the Market, Go Compare, and Confused.com is recommended. MoneySavingExpert.com suggests renewing insurance 20 to 26 days before expiry and exploring direct quotes from providers not listed on comparison sites, such as Direct Line. Consumers are encouraged to negotiate with their current provider after finding a better deal elsewhere and explore cashback options through platforms like Topcashback and Quidco.