Thousands of motorists are being advised to seek alternative motor insurance as a provider has gone bankrupt. Premier Insurance Company Limited, a Gibraltar-based insurer offering car and motorcycle policies to UK clients, has entered administration, affecting approximately 16,000 individual and small business policyholders. Existing policies with the company will cease on December 1, necessitating the procurement of new coverage.
The Financial Conduct Authority has assured those impacted that brokers will reach out to assist in securing new insurance. Following the cessation of issuing new policies in January 2025, Freddie White and Bradley Chadwick from Grant Thornton have been appointed as joint administrators by Premier Insurance.
Policyholders are informed that claims will no longer be honored by Premier Insurance, with coverage now falling under the Financial Services Compensation Scheme (FSCS). The FSCS, an independent organization safeguarding consumers in case of a financial institution’s failure to meet claims, will protect eligible UK policyholders and small businesses with under £1 million in annual turnover.
Sarah Marin, FSCS’s chief customer officer, affirmed that efforts are underway to ensure all eligible customers are safeguarded, with claims continuing to be assessed in accordance with policy terms. Renewing car insurance annually is mandatory in the UK, with options including third party, third party fire and theft, and fully comprehensive coverage.
When seeking alternative quotes, utilizing comparison websites like Compare the Market, Go Compare, and Confused.com is recommended. MoneySavingExpert.com suggests renewing policies 20 to 26 days before expiration and checking with providers directly, as some may not be listed on comparison sites. Notably, Direct Line is one such provider. Customers should also explore cashback options on platforms like Topcashback and Quidco when switching policies.