I've been trying to sort out car insurance for my Mum using internet insurance companies.

I completed the information with my Mum present, but when I went to buy a policy the site (Swift Cover) said it could not give insurance as there was a discrepancy regarding claims declared - I had put none.

I got my Mum to ring up her old insurer (her broker, the AA, had sent her a letter at the end of her last policy saying she had 6 years NCB), and they told her there had been a claim made against her in March '11.

She had a small prang with someone outside a shop but as far as she knew there was no damage and the other driver didn't ask for any details. However somehow the other driver has got my Mum's details and made a claim, and the insurance company paid out without arguement, without asking for my Mum's version of events or even telling her. Do you know how this can happen and if it is even legal? Needless to say her insurance has now tripled.