Saga car insurance!!something fishy please help

I took out fully comp car insurance for my vw golf in december 2012. I paid in full £300 but shortly after I had a very small accident which was my brakes failed just as I was approaching a traffic jam and cruised into the car in fromt.
Very little damage to either car but they wrote mine off for a cracked number plate and broken light covers as it was a 79 model I suppose
My query is as I want to take my time choosing a new car(they only allowed me £550 for mine) I decided to cancel my insurance for now and start again when I get one.
Saga said if I cancel I wont get a penny back and they will only give me until March 7th to find another which I can transfer the insurance.
Now surely this isnt fair as I have paid up till decemeber 2013
Grateful for any help before I complain
thanks

Well obviously I only expected the remaining time refunded less admin. What about the time limit on finding another vehicle? Is this standard?

Yes I wish I had realised this when they offered me £550 less £400 excess!!!
As I have only passed my test 2 years ago I am totally inexperienced ..I wish I had kept it now, although it was quite old a p reg golf, apart from the brake problem which I was told after was oil on one of the brake pads it was fine.
Oh well, all experience, trouble is as I am 63 now its a bit late lol

Do you mean saga are a bad company ?