Can I sue my auto insurance company?

I called US Agencies auto insurance company in Huntsville, AL. around the middle of April to add a 2006 Suzuki Forenza Wagon to my policy, which included a 2004 Chevy Aveo LS and was told my policy was cancelled due to insufficient information. My question was why I was able to obtain insurance in the first place if I didn’t have all the information, so I went in and had all information and paperwork notarized and faxed to their main office with the help of an employee (Bart) from the University Dr. Store and he ured me that everything was taken care of after he resolved the matter through underwriting. I then called to make a payment on the 2nd of May, 2008 to pay for my policy on a 2004 Chevy Aveo LS and was informed that the policy had been cancelled due to the same exact discrepancies that kept me from keeping my policy just two weeks before. I was not notified either time for these instances. I understand that once a policy is issued, the insurance company except for reasons specifically stated in the policy can not cancel it, and state laws usually limit what a company can include in the \"cancellation\" provisions of its policies. Typically, policies will be subject to cancellation only for failure to make required premium payments or for some type of serious misrepresentation or fraud by the policyholder, which is not the case here. They have falsified information in their database, including licenses I do not hold and wrong street address and they refuse to update my information and now I cannot get insurance on my vehicles. I signed an arbitration agreement with them to avoid legal action, but they will not help me in this matter so since I am no longer a customer, can I legally sue?