I recently purchased car insurance from More Than on the internet. All my bank details were accepted and an email was sent to myself informing me that a policy document will arrive shortly. On recieving my bank statement i realised that a payment had been withdrawn. Therefore I had assumed that my insurance cover would have started on the elected date. Having still not recieved my insurance policy a week after the start date i decided to contact the insurance company. They informed me that i do not have a policy with them as there had been an error in the system. I then gave my details again at which point they refused to insure the vehicle and are willing to return my money.
My question is two fold, where do i stand legally in regards to the fact a payment was taken and then i was not informed by the insurance company that a policy had not been created. Secondly, having got a good price from the insurance company, can a make them give me the same price or can they increase the premium.