Had you been involved in an accident you WOULD have been covered (Which is why they are only going to refund you what is remaining on the policy and not all of it). They agreed to the policy and hence you were covered but after they have checked records they have realised they have insured people that they didn't mean to and are cancelling them now. I know it doesn't make it any better (At all!) but I s'pose at least we got cheaper insurance for the months we did have it (Considering for me it is at least £250 more for the second cheapest).

Still, I'd love to do something more active about it and will keep an eye on here and check out any further details.

Cheers.