Both of you are experiencing terrible service, but in both cases, the issue is the agent, not the actual insurance company. A Department of Insurance complaint is a great avenue to get this resolved, because the insurance company has to respond. Huge fines if they don't. The insurer will find out when they receive the complaint, and they will contact the agent. Then, the insurance company will fix the billing error and stop charging you. Then, they'll do nothing to the crappy agent unless said agent has a long history of crappy service and complaints, AND doesn't have a huge book of business with them.

And yes, the policy terminates at midnight on the date of expiration. There's no automatic extension of coverage for people who don't pay their renewal.