Thousands of drivers face a situation where their car insurance might no longer be valid following the collapse of a major provider. Premier Insurance Company Limited, a Gibraltar-based insurer that offered car and motorcycle insurance to UK customers, recently went into administration. This means that policies with this company are no longer in effect as of December 1, requiring affected drivers to secure new coverage. It is estimated that around 16,000 individual customers and small businesses were insured by Premier Insurance before its collapse.
Customers who have already switched to a new insurance provider will have coverage under the new policy, as Premier Insurance is no longer processing claims. Instead, the Financial Services Compensation Scheme (FSCS) will step in to cover claims for affected policyholders. The joint administrators of Premier Insurance, Freddie White and Bradley Chadwick of Grant Thornton, were appointed when the company ceased issuing new policies in January 2025.
Sarah Marin, the chief customer officer at FSCS, reassured customers that the organization is working closely with the appointed Insolvency Practitioner to ensure that all eligible UK policyholders are protected. Firms with an annual turnover below £1 million will also receive protection under FSCS. It is emphasized that claims will continue to be assessed in accordance with policy terms.
In the UK, car insurance is mandatory and must be renewed annually. The main types of car insurance include third party, third party fire and theft, and fully comprehensive. When shopping for new quotes, using comparison websites like Compare the Market, Go Compare, and Confused.com can help in finding competitive prices. MoneySavingExpert.com recommends renewing car insurance 20 to 26 days before the current policy expires. Additionally, it is advised to check quotes directly with some providers that may not be listed on comparison sites, such as Direct Line.
For those switching to a new policy, exploring cashback options on platforms like Topcashback and Quidco can provide additional savings.