Right, well you say you have the money to carry on paying your insurance so you got the letter yesterday (26/7). So you call you insurance and say "Hello, I recieved your letter dated 23/7 yesterday. Saying that my policy had been cancelled due to non payment. this was due to a mess up by my bank. here are my card details can i make the payment now and can you backdate the policy to 20/7 and allow it to continue as it was. (here are new details if neccassary for payments). Also I am unhappy with the delay, so could you please put a note on my account to call me if there are any future problems. Thanks. Have a nice day" Then we get on with our lives and try not to drive into things. If he claims on your insurance, then im afraid thats how it is. Shit happens, thats what insurance is for. dont follow too closely and watch whats going on.