Thousands of motorists could be without valid auto coverage starting today due to the collapse of an insurance provider. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle policies to UK clients, recently entered administration. Policyholders are advised that their coverage with the company is now void as of December 1 and they must secure alternative insurance. It is estimated that around 16,000 individuals and small businesses were insured by Premier Insurance before its collapse.
Claims will no longer be honored by Premier Insurance, with the Financial Services Compensation Scheme (FSCS) stepping in to provide coverage for affected customers. The company ceased issuing new policies in January 2025, with Grant Thornton’s Freddie White and Bradley Chadwick appointed as joint administrators.
Sarah Marin, the FSCS’s chief customer officer, assured policyholders that efforts are underway to safeguard eligible UK customers affected by the insurer’s failure. Firms with an annual turnover under £1 million will also be protected by the FSCS. Motorists are reminded that auto 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, utilizing comparison websites like Compare the Market, Go Compare, and Confused.com is recommended. MoneySavingExpert.com suggests renewing policies 20 to 26 days before expiry for optimal savings. Additionally, it is advised to check quotes directly with providers not listed on comparison platforms, such as Direct Line. Customers switching policies should explore cashback opportunities on platforms like Topcashback and Quidco.