Following the collapse of Premier Insurance Company Limited, a Gibraltar-based insurer providing car and motorcycle insurance for UK customers, thousands of drivers are advised to seek alternative motor insurance as their policies will cease on December 1. Approximately 16,000 individual customers and small businesses were covered by Premier Insurance.
The Financial Conduct Authority has stated that affected policyholders will be contacted by brokers to assist in finding new coverage. The company ceased issuing new policies in January 2025, and Grant Thornton’s Freddie White and Bradley Chadwick have been appointed as joint administrators.
Customers of Premier Insurance will now be covered by the Financial Services Compensation Scheme (FSCS) as the company is no longer honoring claims. The FSCS is an independent entity that safeguards consumers in cases where a financial services firm becomes insolvent and cannot meet claim obligations.
FSCS’s Chief Customer Officer, Sarah Marin, reassured policyholders that efforts are underway to protect all eligible UK customers and small businesses affected by the insurer’s failure. The FSCS will continue to evaluate claims in accordance with policy terms.
In the UK, car insurance is mandatory and must be renewed annually, with three main types available: third party, third party fire and theft, and fully comprehensive. To find the best deals when seeking new quotes, utilizing comparison websites such as Compare the Market, Go Compare, and Confused.com is recommended.
MoneySavingExpert.com suggests renewing car insurance 20 to 26 days before the current policy expires for optimal savings. It is also advised to directly check quotes with providers not listed on comparison sites, like Direct Line. Additionally, customers are encouraged to negotiate with their current provider for a better deal before switching to a new policy.
For potential additional savings, individuals should explore cashback opportunities through platforms like Topcashback and Quidco when purchasing a new policy. Remember to always review and compare various options to secure the most suitable and cost-effective insurance coverage.