Is this Legal? This has to do with auto insurance...?

Okay, ehre is the deal, my insurance was supposed to be taken out of my account monthly, it never happened so I signed up for it again in July, well on August 25th I got a notice via email that my insurance lapsed due to non-payment on the 21st...so I called the insurance company on Septemebr 5th and paid the amount to reinstate coverage through the automated payment line. The payment was taken out of my account of September 8th. I have proof of that. Well I called yesterday after getting into an accient and the automated system tells me that my coverage was cancelled due to non-payment on the 21st of August so I pay the amount again because I know my payment is due again and I figure I will call to get everything straightened out since they made a mistake. After holding for twenty minutes, I learn my policy was never reinstated even though I paid to reinstate it and the automated system which I have used SEVERAL times before successfully told me it was reinstated then they tell me I shouldn't have paid another payment because my policy is due to be renewed this week so now I have a credit of $238 so I only owe them $20 to reinstate, which I had no intentions of doing and they are saying I should have spoke to someone. I was not AT FAULT for the accident so the other person's insurance has to cover my vehicle, but I don't want there to be a problem since there is a lot of damage done to my car and my back. Please someone help me! I have been screwed, I feel like and I am totally stressed out!!