Thousands of motorists could be left without valid auto insurance starting today due to the collapse of a provider. Premier Insurance Company Limited, an insurer based in Gibraltar that offered car and motorcycle insurance to UK clients, recently entered administration. Policyholders are advised that their coverage with this company is no longer in effect as of December 1, necessitating the search for alternative insurance providers.
If you were insured with Premier Insurance, your policy is no longer active, and you must secure new coverage. Those who have already switched to a new insurer will have protection under the new policy. It is estimated that around 16,000 individuals and small businesses were covered by Premier Insurance at the time of its collapse.
Claims will no longer be processed by Premier Insurance; instead, the Financial Services Compensation Scheme (FSCS) will provide coverage for affected customers. The company ceased issuing new policies in January 2025, leading to the appointment of Freddie White and Bradley Chadwick from Grant Thornton as joint administrators.
Sarah Marin, the chief customer officer at FSCS, reassured policyholders that efforts are underway to safeguard eligible UK policyholders affected by the situation. Firms with an annual turnover under £1 million will also be protected by FSCS. Claims will be reviewed based on the terms of the policy to ensure affected customers receive appropriate consideration.
In the UK, auto insurance is mandatory and must be renewed annually, with three main types available: third party, third party fire and theft, and fully comprehensive. When seeking new insurance quotes, using comparison websites like Compare the Market, Go Compare, and Confused.com can help in finding competitive prices. Optimal renewal time, as suggested by MoneySavingExpert.com, is typically 20 to 26 days before the current policy expires. It’s advisable to directly check quotes with providers not listed on comparison sites, such as Direct Line, and negotiate with your current insurer if you find a better deal elsewhere. Additionally, exploring cashback options on platforms like Topcashback and Quidco when switching policies can lead to further savings.