katster have you tried asking for a recording of the conversation you had with the airline co to be listened to? I say this because in December, DH got a quote for annual worldwide travel policy for £79 with direct line, when he telephoned them to take them up on the quote (he did not trust online!), the person said they could save him some money as it was coming up at £67 with them. Ideal he said. Thank you very much. Policy document arrived while we were in USA on vacation so did not read it, when we got home we just filed it. Anyway, DH broke his ipod while away a couple of weeks ago and went to claim on travel insurance only to be told the insurance was a single travel policy for our last trip and as such we were not insured. Sure enough paperwork stated this to be correct, but DH was sure he had asked for annual, as we travel a lot, and would not have accepted single knowingly. He asked for them to listen to the tape recordings they always make, and sure enough they came back and confirmed he had asked for the the annual policy we were quoted, and was not told the policy being sold was single. So, they honoured the claim, and for the additional £12, they have restarted the insurance for a year from now (ie an additional 6 months for £12).
It might be worth asking them if you can have a copy, and if they refuse, ask for it under Subject Access Requirement (this is citing the data protection act which requests them to provide by law all information they hold on you including tape recordings, as long as you request that specifically). You need to do it in writing, send £10 cheque.
Its a lot of money. If they think you got the wrong end of the stick, how do they know they did not give the wrong info? unless they have listened to it, which means you can too.