Something definitely sounds off! I'd ask if they have done a credit check, a friend had her insurance sky rocket because her credit rating wasn't great (though it was her ex husbands doing) but not every company does.
I would contact the financial ombudsman if I were you. Ask their advice on it and make a complaint, as it sounds like they have really misled you! I'd also cancel and find another insurer. If they're pulling stunts like this now imagine what they could possibly do if you (god forbid) ever had to claim..