Thousands of drivers are being advised to seek alternative motor insurance following the insolvency of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer that offered car and motorcycle insurance to UK customers, entered administration recently. Policies with the company will terminate on December 1, affecting approximately 16,000 individual customers and small businesses.
The Financial Conduct Authority has stated that impacted individuals will be contacted by brokers to explore new coverage options. Premier Insurance ceased issuing new policies in January 2025, with Freddie White and Bradley Chadwick from Grant Thornton appointed as joint administrators.
Premier Insurance policyholders will now be covered by the Financial Services Compensation Scheme (FSCS), an independent entity safeguarding consumers in case of a financial services firm’s failure. Sarah Marin, FSCS’s chief customer officer, assured customers that the FSCS, in collaboration with Grant Thornton (Gibraltar), is actively safeguarding eligible UK policyholders and small firms affected by the situation.
Car insurance is mandatory in the UK and must be renewed annually, with three main types available: third party, third party fire and theft, and fully comprehensive. To find competitive quotes, individuals are encouraged to use comparison websites like Compare the Market, Go Compare, and Confused.com. MoneySavingExpert.com recommends renewing car insurance 20 to 26 days before the current policy expires and suggests checking directly with providers not listed on comparison sites, such as Direct Line.
When switching to a new policy, consumers should explore cashback options available on platforms like Topcashback and Quidco to maximize savings.