Legal Actions against Budget Insurance

I have an ongoing claim with Budget for an accident that occurred on the 22rd May 2021, they initially rejected citing that the regular driver was was clearly declared in the policy. I lodged a review then the reason changed, they said i was using my car as a Taxi/Shuttle, which i refuted and asked them to furnish me with that information which they refused. I then approached my Lawyer to initiate legal action against Budget. He sent them a letter requesting that they furnish me with such information, they instead decided to do the most bizarre thing, they refunded all my premiums from day i joined..the question is why do that? Are they saying i was never covered? Are they running away from paying for the car they declared written off? They however leave me with no choice but to approach the court of Law..these people are real mafias out there to milk us..