Pretty strange that they would write you a policy without looking before hand. You might call and argue with them over the $150, since your car insurance business might give them some incentive to make you happy. Unfortunately, it would cost more than $150 to compel them to give a full refund (which they should, even if the 'fine print' says they can do what ever they want). Personally, I'd change my car insurance, just for getting rear-ended like that. Progressive isn't the best deal anyway, been meaning to change companies for a while, but already know what to expect from them, and only carry the minimal allowed by law...
I could understand a cancellation like that down here in Florida, but that roof would have to be pretty bad in Pennsylvania. Might also use the Better Business Bureau, file a complaint, they have to respond to it, make some attempt to correct the problem...