Thousands of motorists could be without valid car insurance starting today due to the collapse of an insurance provider. Premier Insurance Company Limited, a Gibraltar-based insurer that served UK customers with car and motorcycle insurance, recently entered administration. Policyholders of the company are advised that their insurance coverage is no longer in effect as of December 1, necessitating the search for alternative insurance options.
Individuals who have secured new car insurance policies with a different provider will have coverage moving forward. It is estimated that approximately 16,000 customers and small businesses were insured by Premier Insurance before its collapse. Claims will now be handled by the Financial Services Compensation Scheme (FSCS) since Premier Insurance is no longer processing claim payouts.
The company ceased issuing new insurance policies in January 2025, and joint administrators Freddie White and Bradley Chadwick from Grant Thornton have been appointed. Sarah Marin, the chief customer officer at FSCS, assured customers that the organization is collaborating with the appointed Insolvency Practitioner to safeguard eligible policyholders in the UK.
Car insurance is mandatory in the UK and must be renewed annually, with three primary types available: third party, third party fire and theft, and fully comprehensive. When seeking new insurance quotes, individuals are advised to utilize comparison websites such as Compare the Market, Go Compare, and Confused.com for price comparisons. It is recommended to renew car insurance 20 to 26 days before the current policy expires, and to explore quotes directly with providers that may not be listed on comparison sites, like Direct Line. Customers can also explore cashback options on platforms like Topcashback and Quidco when switching to a new policy.
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