12 months ago I got rid of an old Nissan that I had been driving sporadically for the previous year. Obviously in getting rid of the car I cancelled the insurance and received written confirmation as such. This April I was surprised to receive a renewal notice for the insurance. On checking with my bank, it appears the insurers had withdrawn £400 for the year in which I did not have the car and thus did not want insurance. On speaking to the insurance company, they stated that this was a clerical error; they mentioned that one of their staff had reactivated the account.

They have offered to reimburse me for the cost of the insurance, which they have done, and also offered a modest token by means of compensation (£80). I am somewhat appalled that notwithstanding the fact that if I had not checked my bank account to confirm that the policy was closed, an insurer can manage to reactivate your policy and so withdraw payment. What are my options?