Going back to the OP, one possibility is somebody else of the same name. My son had a minor collision, gave the other driver my name & address, as the policy holder, and we heard nothing for 3 months. Turned out the other driver's insurer had not bothered to use the address details but looked up my name on a database, found a matching name on the other side of town and had been pursuing a claim against him.
We had this - our car reg was taken as a red renault laguna that was in an accident in Yorkshire - we live Highlands...and again we could prove no damage and recipts to show where we had been all day.
The insurance company sorted it all after a bit of faffing that made us feel 'in the wrong', but in hindsight they were just making absolutely sure.
Aviva for example ran to 97% in 2012 across all classes they write. So £1000000 in for premium = a pre tax profit of £30k. Obviously their premium income is vastly higher but the profit margin is still very very small.
If they would stop sending me 4 letters every time they think my car insurance is due (on the wrong date, and they should know from the first time they quoted me that I'm a pretty new driver and they don't cover me, or at least their quote is still well over £1000 more than all the others on the comparison sites), and another 4 letters every time they think my home insurance is due (to a house that they won't insure because of the listed status, which they should know because I asked them), all just because they gave me 7 free days insurance some years ago, they could perhaps save some money!
