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 offering car and motorcycle policies to UK customers, recently entered administration. Policies with the company will terminate on December 1, affecting approximately 16,000 individuals and small businesses.

The Financial Conduct Authority has stated that impacted individuals will be contacted by brokers to assist in securing new coverage. Premier Insurance ceased issuing new policies in January 2025, with Freddie White and Bradley Chadwick from Grant Thornton appointed as joint administrators.

Effective immediately, Premier Insurance will not honor claims, and affected customers will be covered by the Financial Services Compensation Scheme (FSCS). The FSCS is a safeguard for consumers when financial firms fail to meet claim obligations.

Sarah Marin, chief customer officer at the FSCS, emphasized the organization’s commitment to assisting policyholders affected by Premier Insurance’s insolvency. Firms with an annual turnover under £1 million will also receive protection. Car insurance is mandatory in the UK and must be renewed annually, with options including third party, third party fire and theft, and fully comprehensive coverage.

To ensure competitive pricing, individuals are advised to utilize comparison websites like Compare the Market, Go Compare, and Confused.com. MoneySavingExpert.com recommends renewing car insurance 20 to 26 days before the policy expiration date. Direct Line is among the major insurers not listed on comparison websites, so reaching out directly is advisable. Additionally, exploring cashback options on sites such as Topcashback and Quidco can provide further savings for policyholders.