Around 16,000 motorists across the UK are waking up without valid car insurance today after their provider, Premier Insurance Company Limited, officially entered administration.
What Happened to Premier Insurance?
The Gibraltar-based insurer, which provided car and motorcycle cover to UK customers, ceased trading last month. Joint administrators Freddie White and Bradley Chadwick of Grant Thornton were appointed to handle the firm's affairs.
Premier Insurance had already stopped offering new policies back in January 2025. However, existing policies remained in force until December 1, 2025. From today, any remaining policy with the company is no longer valid, leaving thousands in need of urgent alternative cover.
What Should Affected Drivers Do Now?
If you held a policy with Premier Insurance, you must act immediately to secure new car insurance. Driving without valid insurance is illegal in the UK.
The immediate financial protection for claims now falls to the Financial Services Compensation Scheme (FSCS). Sarah Marin, Chief Customer Officer at the FSCS, sought to reassure policyholders: "We understand customers will be worried... We’d like to reassure customers that FSCS is working closely with the Insolvency Practitioner... to make sure all eligible UK policyholders are protected."
The scheme will cover eligible individual customers and small firms with an annual turnover under £1 million. Claims will be assessed against the original policy terms.
How to Find New Car Insurance Quickly
With time of the essence, drivers should use comparison websites to get quotes swiftly. Key sites include:
- Compare the Market
- Go Compare
- Confused.com
Remember that not all insurers appear on these sites. Major brands like Direct Line often require a direct quote. Experts at MoneySavingExpert.com advise starting your search 20 to 26 days before your policy end date for the best prices, but in this urgent scenario, compare widely and quickly.
Once you find a competitive quote, it can be worth calling your current provider (if you have one) to see if they will match or beat it. Also, check cashback sites like Topcashback and Quidco for potential savings on a new policy.
This sudden collapse underscores the importance of the FSCS safety net and serves as a stark reminder for all drivers to ensure their cover is secure and from a stable provider.
