Miss sold mobile phone insurance

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Hi I’m looking for any advice. In 2012 I got a mobile phone on contact from o2 I got it insured and let my partner have the new phone as I already had a decent phone I informed o2 of this and they insured me for £20 pm 18 months later my partner had the mobile stolen so I contacted the insurance who said "as the sim on the contract was never in the phone I wasn’t covered" me being hot headed had a few choice words to say on the matter and closed all connections with o2 to stop them taking any more money. Now lowell finance have been in touch the past six months demanding £492 to make this claim go away I notified the of what happened and was told it doesn’t matter I owe them. What I have said is I will pay the end of the contract minus the £360 insurance I paid off the original £492 but then I received the ccj letter and now it’s £792. What if anything is my options available for me with this matter????? Tia dave

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