Thousands of motorists could be left without valid auto insurance starting today following the collapse of a provider. Premier Insurance Company Limited, an insurer based in Gibraltar that offered car and motorcycle insurance to UK clients, recently entered administration. Individuals with policies from this company will need to secure alternative coverage as their existing policies are no longer valid.

For those who have already taken the necessary steps and obtained new car insurance, coverage will be provided by the new insurer. It is estimated that around 16,000 customers and small businesses were covered by Premier Insurance before its collapse. Claims will now be handled by the Financial Services Compensation Scheme (FSCS) as the company is no longer processing payouts.

The company ceased issuing new insurance policies in January 2025, with Freddie White and Bradley Chadwick from Grant Thornton appointed as joint administrators. Sarah Marin, the chief customer officer at FSCS, reassured policyholders that efforts are being made to safeguard eligible UK customers affected by the insurer’s failure.

In the UK, car insurance is mandatory and must be renewed annually. The main types of car insurance are third party, third party fire and theft, and fully comprehensive. When looking for new insurance quotes, using comparison websites like Compare the Market, Go Compare, and Confused.com can help in finding competitive prices. It is recommended to renew car insurance 20 to 26 days before the current policy expires, and to also explore quotes directly from providers not listed on comparison sites, such as Direct Line.

Customers switching to new policies should explore cashback options available on platforms like Topcashback and Quidco. Stay informed with Daily Mirror as a ‘Preferred Source’ on Google News for quick access to trusted news sources.