Thousands of motorists across the UK are facing an urgent deadline to secure new car insurance after their provider, Premier Insurance Company Limited, collapsed into administration.
What Happened to Premier Insurance?
Premier Insurance Company Limited, a Gibraltar-based insurer that offered car and motorcycle policies to UK customers, entered administration last month. The firm had already ceased selling new policies in January 2025.
If you hold a policy with this company, it will be terminated on December 1. An estimated 16,000 individual customers and small firms are affected. Freddie White and Bradley Chadwick of Grant Thornton have been appointed as the joint administrators overseeing the process.
Protection for Policyholders and Next Steps
The Financial Conduct Authority has stated that affected customers will be contacted by brokers to discuss arranging new cover. Crucially, Premier Insurance is no longer paying out claims.
However, policyholders are protected by the Financial Services Compensation Scheme (FSCS). This independent body steps in when financial firms fail. Sarah Marin, chief customer officer at the FSCS, sought to reassure customers: “We understand customers will be worried... FSCS will protect eligible firms with an annual turnover of less than £1m. Customers can be assured that their claims will continue to be considered against the terms of their policy.”
How to Find New Car Insurance Cover
With the December 1 deadline looming, drivers must act quickly. Car insurance is a legal requirement in the UK. To find the best deal:
- Use comparison websites like Compare the Market, Go Compare, and Confused.com.
- Check quotes directly with providers not on comparison sites, such as Direct Line.
- According to MoneySavingExpert.com, the optimal time to renew is 20 to 26 days before your current policy ends.
- Once you find a competitive quote, call your current provider to see if they can beat it.
- Look for cashback on new policies via sites like Topcashback and Quidco.
Drivers are advised not to delay, as being without valid insurance can lead to serious penalties and financial risk.
