Thousands of drivers are being advised to seek alternative motor insurance following the collapse of a provider. Premier Insurance Company Limited, a Gibraltar-based insurer that offered car and motorcycle policies to UK clients, recently entered administration. Policies held with the company will terminate on December 1, affecting approximately 16,000 individuals and small businesses.
The Financial Conduct Authority has assured affected policyholders that brokers will reach out to assist in securing new coverage. The company ceased issuing new policies in January 2025, with administrators Freddie White and Bradley Chadwick of Grant Thornton overseeing the situation.
Claims will now be handled by the Financial Services Compensation Scheme (FSCS), an independent entity safeguarding consumers in cases of financial firm insolvency. FSCS, working alongside Grant Thornton (Gibraltar), is ensuring protection for eligible UK policyholders and small firms with turnovers under £1m.
Car insurance is mandatory in the UK and must be renewed annually, with the main types being third party, third party fire and theft, and fully comprehensive. To find alternative quotes, comparison websites like Compare the Market, Go Compare, and Confused.com can be helpful. The optimal time to renew car insurance, as recommended by MoneySavingExpert.com, is 20 to 26 days before the current policy expires. Additionally, contacting providers directly for quotes is advised as not all are listed on comparison sites.
Not all major providers, such as Direct Line, are featured on comparison websites. Once a suitable deal is found elsewhere, customers are encouraged to negotiate with their current provider to potentially match or beat it. Exploring cashback options through platforms like Topcashback and Quidco when switching policies can also be financially beneficial.