Thousands of motorists face a dilemma today as a car insurance provider has gone bankrupt, rendering policies invalid. Premier Insurance Company Limited, a Gibraltar-based insurer serving UK customers with car and motorcycle insurance, has entered administration. Affected policyholders must now secure new coverage as their existing policies are no longer valid as of December 1. It is estimated that around 16,000 individuals and small businesses were covered by Premier Insurance before its collapse.
Claims are no longer being processed by Premier Insurance; instead, the Financial Services Compensation Scheme (FSCS) will step in to cover policyholders. The company ceased issuing new policies in January 2025, with Grant Thornton appointing Freddie White and Bradley Chadwick as joint administrators.
Sarah Marin, the chief customer officer at FSCS, reassured customers that the organization is working closely with Grant Thornton to safeguard eligible policyholders. Firms with an annual turnover under £1 million will also be protected. Customers can expect their claims to be assessed according to their policy terms.
In the UK, car insurance is mandatory and must be renewed annually. The three main types of coverage are third party, third party fire and theft, and fully comprehensive. When searching for new quotes, utilizing comparison websites like Compare the Market, Go Compare, and Confused.com can help find competitive prices. It is advisable to renew car insurance 20 to 26 days before the current policy expires, and exploring quotes directly from providers not listed on comparison sites can be beneficial.
Some prominent insurance brands, like Direct Line, may not feature on comparison websites, so contacting them directly after finding a better deal elsewhere could lead to additional savings. Exploring cashback options on platforms like Topcashback and Quidco when securing a new policy can also be financially rewarding.