Driving without insurance

My insurance company canceled my insurance without telling me, within that same month i was pulled over by the police for driving without insurance. i told the police i had insurance as i was sure that i did. The police confiscated my car and left me standing in manchester. i wrote a letter of complaint to my insurance company and asked them to re imburs me the money it cost to get my car back and to tell the police it was their mistake, cancelling without notification. they refused to do so. They wrote back to me saying that a letter had been sent out, and that it was not their resposibility wether i had recieved it or not. My insurance and breakdown was with the same company, Direct Choice, my insurance was up for renewal, and i thought this was done automatically, like the breakdown, as i had recieved a letter about the breakdown saying that it was going to continue automatically and that i need not contact them, and i assumed the same about the insurance, as its the same company. i also had been in contact with them frequently during that month as my car had broken down several times, and i rang them direct quoting my insurance policy number, before being re- directed to their breakdown office. I was not addressed about not being insured at any of these conversations.I am very distraught about this, i have never had any points on my licence, in my 7 years of driving. Please advise me how to proceed with this, as i am currently going through a divorce and have 3 children, and need my car each day for school and work. i honestly believed i was insured, i would never have driven the car had i known i wasnt, and was in absolute shock to find out that this had been the case for weeks!