Hi, this is Jim, thank you for the question - I will do my best to resolve this quickly for you.
Sorry to hear of the issue. In terms of the long delays, you are covered under the Consumer Rights Act 2015 here which means you have a right to expect a service (from the insurer) carried out with reasonable care and skill. Taking some two years may well mean you can sue for breach of your consumer rights, which is the first thing.
If they then impose a higher premium for renewal, whilst they are entitled to do this - I do not see how that is justified given their conduct. The insurer dispute is covered by an Ombudsman who can help you if the insurer is dragging their feet or not taking the claim seriously.
You should now make a formal complaint to the insurer and if that does not resolve the matter ask them for a "deadlock letter", which is a letter giving their final response. You can make the
Once you have the deadlock letter the next step would be to escalate this to the Ombudsman - they will investigate and liaise with the insurer which would hopefully result in a resolution - the claim to be expedited and they can order the insurer to make a financial award for inconvenience if they have acted poorly.
Once you have their final response, you can make the complaint here : www.financial-ombudsman.org.uk/consumers/how-to-complain
Based on the circumstances, assuming the insurer does not uphold your complaint, I am sure the Ombudsman will do. The Ombudsman will look at this case independently and will make a decision based on what happened. Their decision is binding on the insurer, but not you. So you would not be bound in law to follow their decision. If the Ombudsman did not find in your favour, therefore, you then have the option of suing the insurer for breach of your consumer rights and you have up to 6 years to bring a claim to the court (the limitation period is 6 years from your date of loss, to when you need to issue a claim).
I hope this helps and answers the question which is easy to understand - please feel free to ask me anything else. I will reply as soon as I can to help with any further queries.
Thanks for using our services and have a good day,