Thousands of motorists are being advised to seek alternative auto insurance as a provider has gone bankrupt. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle coverage to UK clients, has entered administration. Existing policies with the company will terminate on December 1, impacting approximately 16,000 individuals and small businesses.
The Financial Conduct Authority has confirmed that brokers will reach out to affected policyholders to assist in securing new coverage. Premier Insurance ceased issuing new policies in January 2025. Joint administrators Freddie White and Bradley Chadwick from Grant Thornton have been appointed to manage the insolvency process.
Customers of Premier Insurance will now be covered by the Financial Services Compensation Scheme (FSCS) as the company is no longer able to fulfill claims. The FSCS is an independent entity safeguarding consumers in case of financial firm insolvency. Sarah Marin, FSCS’s chief customer officer, reassured policyholders that eligible UK customers and small firms will be protected, with claims being processed according to policy terms.
In the UK, car insurance is mandatory and must be renewed annually. The three primary coverage types are third party, third party fire and theft, and fully comprehensive. To find new insurance quotes, using comparison websites like Compare the Market, Go Compare, and Confused.com is recommended. It is advisable to renew policies 20 to 26 days before expiration and consider direct quotes from providers not listed on comparison sites, such as Direct Line.
Upon securing a new policy, customers are encouraged to explore cashback options on platforms like Topcashback and Quidco. It is essential for consumers to be proactive in managing their insurance needs to ensure proper coverage and financial protection.
