The liquidator for Setanta Insurance is writing to policyholders this week to tell them their insurance cover will be cancelled in within seven or ten days.
It has also emerged that policy holders may face a delay getting written confirmation of their No Claims Bonus from the liquidator.
The Central Bank said it was "aware that many insurers are being flexible surrounding requirements for documents, including no claims bonus letters, which means policyholders can obtain alternative cover without presenting this document immediately to their new insurer.
“Therefore consumers should engage with their broker or an insurance company without delay."
Setanta announced it was going into liquidation last month. The company had 75,000 customers most of whom were commercial vehicle owners.
They will be told this week that they will have to find a new insurance cover. It means may have to pay twice for the same service.